Mixed Reactions From Ludhiana's MSME Sector: Budget 2025

(MENAFN- KNN India) Ludhiana, Feb 4 (KNN) Finance Minister Nirmala Sitharaman's Union Budget 2025, presented on February 1, has drawn varied responses from the small business community in Ludhiana, Punjab's industrial hub hosting over 150,000 MSME units.

The budget's revision of capital investment and turnover thresholds for the MSME sector has emerged as a key point of discussion among local industry leaders.

Chamber of Industrial and Commercial Undertakings (CICU) President Upkar Singh Ahuja offered a positive assessment, characterising the budget as balanced and aligned with India's economic aspirations.

While acknowledging that direct MSME relief measures were limited, Ahuja highlighted the potential long-term benefits of reduced green taxation and enhanced infrastructure support.

However, he advocated for further reforms, specifically requesting reductions in corporate tax rates and GST on steel.

The Federation of Industrial and Commercial Organisation (FICO) presented a more nuanced perspective through its President, Gurmeet Singh Kular.

While FICO welcomed the revised MSME definition as a progressive measure, it expressed concern over the suspension of the Credit Link Capital Subsidy Scheme (CLCSS).

Kular emphasised the scheme's crucial role in technological advancement and proposed substantial enhancements, including raising the scheme's limit to Rs 5 crore and increasing the subsidy rate from 15 percent to 25 percent to boost global competitiveness.

Industry stakeholders notably expressed disappointment regarding two specific aspects: the absence of a special economic package for Punjab and the government's decision not to rationalise GST rates.

These concerns highlight the complex challenges facing Ludhiana's MSME sector, which represents the largest concentration of small businesses in Punjab.

(KNN Bureau)

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