(MENAFN- KNN India)
New Delhi, Jan 28 (KNN) As Union Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 on February 1, micro, small, and medium enterprises (MSMEs) are voicing critical expectations.
The sector is advocating for enhanced allocations to bridge the skill gap, reductions in solar component taxes to encourage industrial adoption, and streamlined taxation policies to ease operations and boost growth.
Laghu Udyog Bharati's Madhya Pradesh chapter president, Mahesh Gupta, emphasised the sector's pivotal role in driving the economy, stating,“We are optimistic about substantial support for MSMEs to enhance productivity and simplify taxation. Assistance to the sector will bolster GDP. The government should prioritise skill training for youth to create a ready workforce, while introducing a single-window mechanism for permissions and bank financing.”
Industry leaders have highlighted the urgent need to modernize Industrial Training Institutes (ITIs) by updating curriculums with cutting-edge technologies and emphasizing practical training.
There is also strong advocacy for boosting research and development (R&D) and introducing export incentives for smaller towns, which are becoming hubs for innovation and entrepreneurship.
Virendra Porwal, executive chairman of Malwa Chamber of Commerce and Industry, urged the government to reduce Goods and Services Tax (GST) rates to 12% and 5%, depending on the category, to alleviate the financial burden on businesses.
Taxation reforms remain a key demand. A.K. Lakhotia, president of the Madhya Pradesh Tax Law Bar Association, raised concerns over input tax credit (ITC) imbalances that disrupt working capital.“The current system prioritizes IGST over CGST and SGST, often leaving SGST balances unused.
This creates cash flow challenges, forcing businesses to pay taxes with interest in other categories. A rule allowing ITC adjustments in any order would resolve this issue,” he explained.
With the MSME sector contributing significantly to India's GDP and employment, stakeholders are hopeful that Budget 2025 will address these concerns, paving the way for a more competitive and dynamic industrial landscape.
(KNN Bureau)
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