New Delhi February 2, 2019 The Process Plant and Machinery Association of India (PPMAI) has welcomed various incentives provided to the Micro, Small and Medium Enterprises (MSME) in the Union interim budget for the year 2019-20.
PPMAI represents the Capital goods and Process Equipment manufacturing and exporting industry in the country
“The various incentives announced by the government to the MSME segment including Two per cent interest subversion for loans up to Rs One Crore and increase of the share of government procurements from MSMEs through Government eMarketplace (GeM) to 25 per cent, including 3 per cent from MSMEs run by women will help the manufacturing segment to grow and generate employment,” said PPMAI Chairman Yatinder Pal Singh Suri.
“The impact of these incentive’s to the MSME sector will be positive as the Two per cent interest subvention would enable the cash-starved MSMEs to ensure smooth credit line flow for their firms Most importantly, the Government has opened a new market for the home-grown entrepreneurs by allowing sourcing from MSMEs through Government up to 25 per cent, including 3 per cent from women-run organisations. Furthermore, Government e-Marketplace (GeM) has transformed procurement by making it transparent, thus giving MSMEs an opportunity to sell their products through GeM. Revisions in the GST slab rates, would be an added welcome development.” Said Mr Suri.
“This government support to the MSME sector will provide stimuli to the local manufacturers to grow and prosper, This is also an answer to the employability avenues .This is also shows that the government did not get carried away by demands of raw material lobby which would have hurt the Capital Goods and MSME segment. MSMEs have an important role in supporting large industries, achieving higher levels of indigenization and generate higher employment in the country” Mr Suri added.
“As the capital goods industry and MSME’s require upgradation, the government should reduce import duty on capital goods required for major revamp. Additionally, suggested that temporary imports of capital goods required by the industry which are to be subsequently re-exported be granted exemption from levy of customs duty.” Mr Suri added.
