MADITSSIA President A. Kodeeswaran Budget Comment

Business MInutes

The President of the Madurai District Tiny & Small Scale Industries Association (MADITSSIA), A. Kodeeswaran, has welcomed several key provisions in the Union Budget 2025 while also emphasizing certain crucial demands that remain unaddressed for the growth of the MSME sector.


Welcomed Aspects of the Budget


Kodeeswaran appreciated the government's move to enhance financial support and industrial development initiatives. He particularly welcomed the following:


The increase in the upper limit for micro and small enterprises under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme from Rs. 5 crores to Rs. 10 crores.


The announcement of providing 10 lakh credit cards to 5 lakh micro enterprises.


The expansion of the loan subsidy scheme for startups from Rs. 10 crores to Rs. 20 crores.


The provision of employment opportunities for 22 lakh people in the leather goods manufacturing sector.


The establishment of a Global Hub for toy production, promoting the ‘Made in India’ brand through cluster-based initiatives.


The commitment under the Ease of Doing Business initiative to review and reduce all non-financial laws within a year.


The increase in the tax ceiling to Rs. 12 lakhs under the new income tax scheme.


The hike in the TDS ceiling from Rs. 2.4 lakhs to Rs. 6 lakhs.


The launch of a new scheme for 5 lakh Scheduled Caste (SC) women entrepreneurs.


The allocation of Rs. 2 crores to support first-generation SC women in starting their own businesses.


Expectations Not Met in the Budget


Despite the positive aspects, MADITSSIA has raised concerns over certain key demands that remain unfulfilled:


The Reserve Bank of India should mandate banks to allocate a specific percentage of their MSME loans to the CGTMSE scheme to ensure that the loan needs of MSMEs are met.


Similar to old industrial estates, new industrial estates should receive a 90% subsidy for road and street light infrastructure under the Integrated Infrastructure Development (IID) scheme.


MSME companies investing in solar energy should be granted a 25% subsidy through the Small Industries Development Bank of India (SIDBI), along with a Set Off facility similar to the one available for residential installations.


Given the importance of industrial exhibitions for market expansion and technological advancements, MSME companies should be provided with a 90% subsidy for travel expenses and accommodation to participate in domestic and international trade fairs, thereby boosting exports and industrial growth.


MADITSSIA urges the government to consider these demands to further strengthen the MSME sector and ensure its continued contribution to India's economic development.


#buttons=(Ok, Go it!) #days=(20)

Our website uses cookies to enhance your experience. Check Now
Ok, Go it!