Small and medium enterprises in India cherish 2017 budget

Posted on February 2, 2017

The Union budget presented by the Finance minister, Arun Jaitley on Wednesday (01/02/2016) drew mixed response from different prominent people and organizations in India. While some opposition party leaders like Mamta Banerjee, MK Stalin, Rahul Gandhi etcetera have criticized the budget stating that it has nothing in it for job opportunities and for the minority and poor in India, the small and medium enterprises in India have embraced the 2017 Union budget presented by Arun Jaitley. The small and medium enterprises in India are jubilant as Arun Jaitley reduced the income tax rate from 30 percent to 25 percent for industries/enterprises having a turnover of upto Rs 50 crores. Read more on Budgets

Businessmen from India have said that the government’s decision to spend more on infrastructure building will boost the economy and the GDP growth rate. Businessmen from Gujarat in particular have strongly embraced the 2017 Union budget. “Gujarat is home to about 2.5 lakh small and medium scale industries and the tax cut will benefit them. It will lead to a boost in their production”, said FGI managing committee member, Janak Sheth.

FGI office – bearers also said that the government’s decision to shift the responsibility of development to the private sector was a good one. They were all praise for the Railway and Union budget. The Confederation of Indian Industries (CII) and Central Gujarat Zonal Council (CGZC) termed the budget as forward looking and balanced.

“It is heartening to note that education, skill development, healthcare and women empowerment have been accorded special priority”, said Nishith Dand, chairman of CII and Central Gujarat Zonal Council (CGZC).

The CII had also praised the Government’s move to spend more on the rural sector. The Vadodara Chambers of Commerce and Industry (VCCI) said that reducing income tax for small and medium enterprises will give their business and profits a boost and will also make doing business in India a lot easier.

“The move to reduce income tax rate by 5 percent for small and medium scale industries in the slab of Rs 2.5 lakh and Rs 5 lakh is very positive. The government has remained committed to its cashless transaction initiative and also banned cash transactions above Rs. 3 lakhs”, said VCCI president, Nilesh Shukla.

There are many innovative startups and small enterprises in India providing essential services and products to the society. Reducing their income tax will give a boost to their profits and will make doing business in India, easier for small businesses and startups. The Government of India should take more of such useful measures and make India a balanced economy. Read more on Startup News