Praising SMEs for the resilience shown by them during the downturn, Ajay Sahai, Director General of the FIEO, opined that the Budget has given an impetus to the crisis-ridden sector. SMEs are regaining their confidence with signs of an economic revival becoming increasingly apparent.
“Introduction of some key measures such as abolition of Fringe Benefit Tax (FBT) as well as extension of the interest subvention scheme till March 2010 and tax holiday has worked in favour of the SME segment,” said F Haque, analyst at SKP Securities in Kolkata.
Besides applauding the Budget, the FIEO has also expressed appreciation for the string of pro-growth MSME policies being initiated by the government over the last 1 year. The organisation believes that the enhanced allocation of funds for SMEs under ‘Market Development Scheme’ and tax exemptions will help the MSME sector achieve higher growth.
“The provision of collateral free lending and rising interest of venture capitalists (VCs) and private equity (PE) players to invest in SMEs have been mainly instrumental in infusing fresh lease of life into the embattled sector,” said Arun Samanto, Proprietor of Burdwan Flour Mills, a Kolkata-based small-sized supplier of agri-commodities.
However, Mr Sahai also called for more incentives in the Foreign Trade Policy (FTP) to help SMEs venture into the new and untapped areas.
