(MENAFN- KNN India)
Bangalore, Feb 1 (KNN) The Karnataka Small Scale Industries Association (KASSIA) has expressed strong support for the Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, citing its comprehensive approach to fostering micro and small enterprise (MSE) growth.
KASSIA President M.G. Rajagopal highlighted the budget's emphasis on critical areas including credit accessibility, skill development, innovation, and business regulation streamlining.
A significant development in the budget is the revision of MSME classification criteria, which increases investment and turnover limits by 2.5 and 2 times respectively.
This modification allows small industries to expand while maintaining their eligibility for government benefits.
The budget also doubles the credit guarantee cover for micro and small enterprises from Rs 5 crore to Rs 10 crore, expected to inject Rs 1.5 lakh crore into the sector over a five-year period.
Additionally, micro enterprises will benefit from new customised Credit Cards with a Rs 5 lakh limit, available through the Udyam portal.
The government has introduced substantial support for entrepreneurship, particularly focusing on first-time business owners from women and marginalised communities, offering term loans up to Rs 2 crore.
The startup ecosystem will receive a boost through an additional Rs 10,000 crore allocation to the Fund of Funds, aimed at promoting innovation and technology-driven enterprises.
In the manufacturing sector, the budget establishes five National Centres of Excellence for skill development and introduces the National Manufacturing Mission, with particular emphasis on clean technology manufacturing.
The Focus Product Scheme for footwear and leather sectors is projected to create 22 lakh jobs, while the toy industry receives targeted support measures.
The Jan Vishwas Bill 2.0 represents a significant regulatory reform, decriminalising over 100 provisions across various laws to reduce compliance burdens on MSEs.
The budget allocates Rs 20,000 crore for Research, Development, and Innovation, while establishing an Export Promotion Mission to facilitate global market access for MSEs.
KASSIA particularly commended the budget's balanced approach, noting positive initiatives across various sectors.
These include developments in tourism through the enhancement of 50 premier tourist sites, expansion of the Udan scheme, visa-free entry for certain tourists, and customs duty exemptions for capital goods, particularly in EV and mobile phone battery manufacturing. The budget also extends full duty exemption to 36 additional life-saving drugs.
The association expressed approval of the government's fiscal management, with the deficit maintained at 4.4 per cent, striking a balance between macroeconomic stability and industrial growth promotion.
(KNN Bureau)
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