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  • Which sectors may very well be on precedence in Budget 2021?

    Written by Arvind Sharma
    The Covid-19 pandemic has adversely affected all financial sectors, and all are pinning their hopes on the upcoming Union Budget to revive their operations and get again to normalcy. No doubt, 2020 has been an distinctive yr, with thousands and thousands staying at house, extended restrictions on human motion and thousands and thousands getting pushed beneath the poverty line. Thankfully, the Government of India instantly swung into motion in May 2020 to announce a slew of measures to help companies, and individuals are anticipating additional long-term sustainable reforms within the upcoming funds.
    However, owing to their distinct capabilities and being related right now, the web and digital sectors resembling Edu-tech, gaming, tele-medicine, fin-tech, and over-the-top (OTT) platforms have seen a large surge of their revenues resulting from web and smartphone penetration within the tier-2 and tier-3 cities. More importantly, the position of pharma and healthcare sector in coping with the Covid-19 pandemic has been exceptional proper from day one of many pandemic until immediately – for example, operating consciousness packages, offering therapy, and conducting the vaccine drive.
    The upcoming Budget bulletins could not fulfill the expectations of all financial segments and, within the context, it might be famous that tax revenues have additionally taken a success. The authorities must undertake a thoughtful method to make sure environment friendly utilisation of sources by figuring out precedence sectors and addressing the calls for of a number of stakeholders/sectors. The pharma and healthcare sector would be the precedence sector in allocating funds, and the profitable implementation of the Covid-19 vaccination drive can have an enormous financial affect in 2021.
    India is a consumption-driven financial system, and the theme of the funds must be to supply impetus to demand and re-start the financial engine. It is notable that we’ve already taken steps to spice up home capabilities for key sectors by launching ‘Production Linked Incentive’ schemes, and measures for cost-efficient manufacturing, elevated infrastructure spending, and tax rebates throughout sectors are anticipated to place the financial system again on progress observe.

    There is much more to do within the infrastructure sector, particularly in roads, railways, ports, airports, energy, and key and well timed reforms in these sectors would appeal to non-public gamers, and enhance competitors and effectivity. Schemes resembling Atmanirbhar Bharat and Make in India will go a great distance in boosting our home capabilities and making certain self-sufficiency throughout sectors, and I’m certain extra long-term and applicable stimulus packages will likely be introduced within the upcoming funds.
    It is estimated that greater than 50 per cent of India’s workforce is self-employed, which signifies that a minimize in tax charges for center and lower-mid revenue teams would act as a lifeline for the plenty and assist them cope up with the financial state of affairs. On the GST facet as properly, there’s a nice potential for the federal government to spur demand and drive progress. Many companies would want to avail skilled providers to revive their enterprise, and subsequently, a selected demand has been to cut back the GST on skilled taxes from 18 per cent to five per cent. Though it will adversely have an effect on authorities revenues within the quick run, the mentioned rationalisation will act as a lifeline for lakhs of companies, and would pay wealthy dividends within the long-run.
    Internet is among the largest forces, and we’ve seen the ability of the web eco-system and digital know-how in pandemic occasions. Digital technology-based purposes have seen elevated acceptance, and efforts must be made to strengthen safety techniques to forestall any cyber-attacks, knowledge violations, and phishing frauds. Further, it is very important realise that start-ups are permeating into all business segments, and have immense potential to empower companies and speed up progress, and key measures are anticipated to spice up the start-up and digital eco-system. The edu-tech sector has seen huge acceptance in current occasions, and has the potential to supply high quality training at inexpensive charges. More sops are anticipated on this sector too.
    Massive investments are wanted within the data know-how and low-cost manufacturing segments. This will clear up the twin downside of financial progress and unemployment. India ought to goal to develop into a hub for electronics, vehicles, and the like.
    We want novel concepts to cope with the results of the Covid-19 pandemic, and the upcoming funds can’t be in comparison with some other. I hope this funds will likely be path-breaking and can stay as much as the expectations of many.
    Arvind Sharma is the associate at General Corporate, Shardul Amarchand Mangaldas & Co.
    Disclaimer: The content material of this text is meant to supply a common information to the subject material. Specialist recommendation must be sought about your particular circumstances. Further, the views on this article are the private views of the writer.

  • Budget 2021: MSME sector desires higher entry to credit score, lenient taxation insurance policies

    Image Source : INDIA TV Budget 2021: MSME sector desires higher entry to credit score, lenient taxation insurance policies
    The Union Budget 2021-22 is only a few days away from now and expectations are driving excessive from all sectors. The MSME sector is hoping to do away with challenges like lack of entry to capital, infrastructure, expert labor, and energy provide points. Experts say that the federal government ought to make sure that the correct thrust is given to construct a sturdy tech ecosystem with beneficial tax insurance policies and upskilling or reskilling the workforce within the section to pave the best way in direction of sturdy financial progress. They mentioned that the Union Budget ought to present some long-term advantages to the sector with higher entry to credit score and lenient taxation insurance policies.
    MSMEs contribute over 40 per cent to the Indian export basket. The sector desires the federal government to give attention to sustainable strategies to extend the contribution to international commerce. There is a requirement to think about rationalizing obligation and tariff charges, promote analysis and growth, assist small industries with tech upgradations plans. This, in return, might assist Indian MSMEs enhance their positions within the worldwide market.
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    The MSME sector is on the lookout for particular bulletins relating to monetary help and stimulus. Experts are hoping for reduction on tax charges for MSMEs for a better bounce again after the pandemic stalled operations for a lot of companies across the nation.
    “Considering the slowdown within the financial system and progress, MSMEs which type a part of the spine of the Indian worth chain expect a giant reduction and reforms within the upcoming price range. We anticipate that the upcoming price range will take stringent actions to empower the MSME sector to revive the financial system from the present slowdown. Apart from GST rationalization, we anticipate an extension of credit score services from the upcoming price range, for the reason that authorities ought to give attention to infusing liquidity into the markets and selling Make in India,” Vinay Jain, founding father of Grafdoer (Sanitaryware producer), mentioned.
    Shashank Agarwal, MD at Salasar Techno Engineering, mentioned that the sector expects the federal government to ease the motion of capital and finance choices for recovering companies. “We are expecting short-term bank loans for working capital financing over the year and as government can be a big client, the strain of the economy could result in a delay in payments from them. We believe that we could potentially benefit from the new tax schemes,” he mentioned.
    While some needed to shut their companies because of the pandemic, many needed to hearth workers and minimize the pay to maintain the enterprise afloat. Despite the continual innovation, a number of start-ups failed as a consequence of funding crunch, tax burden, inflexible compliances, and poor technological growth.

    ALSO READ | Budget 2021: Gems, jewelry trade seeks minimize in import obligation, GST
    “To cope up with this, budget 2021 should focus on enabling the development of MSMEs by providing them access to easy credit, reducing the income tax rate and GST rate, and offering rebates to MSMEs willing to adopt new technologies. During the pandemic, we have seen a boom in the digital adoption where MSMEs are contributing the most,” Dharmendra Ahuja, founder & CEO of PitchWorx, mentioned.
    Kapil Bhatia, CEO, UniMask, mentioned that MSMEs have all the time been the spine of the Indian Economy with round 29 per cent share to India’s GDP. The authorities must re-establish favorable insurance policies and allocate substantial funds for the expansion of MSMEs.
    “2020 was a blessing in disguise for MSME industry where the initial most of 2020 was quite brutal but the later half came to the rescue especially with the #boycottchinesegoods campaign and push towards Make-In-India,” he mentioned.
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  • Citizens who can afford it should pay for the vaccine: Shivraj Chouhan

    Shivraj Singh Chouhan has claimed that the proposed law in the state against the so-called “love jihad” — he did not use the term directly but alluded to it as being popularly prevalent now — is akin to a “Beti Bachao Andolan”, a campaign that sought to prevent female foeticide.

    Speaking at the Hindustan Times Leadership Summit, the CM — who took over the seat of power in Bhopal for the fourth time earlier this year — said: “Many things have opened our eyes. A mother came to me and said how her 14-year-old daughter was misled and taken away. Our police found her in Noorganj near the Nepal border… There are many such cases where women and girls have been subjected to coercion, allurement, deception and fraud. I have set up a team to investigate how many of our daughters have been taken away like this and pushed to a life of hell.”

    “We need a strong law with strong punishment to protect the lives of our daughters and send a message to those who engage in this to fear the law…This is actually a beti bachao andolan,” he said. Asked about how this went against the principle of allowing women to exercise their agency, he said there are no objections if it is done willingly.

    Opposition leaders and legal scholars have criticised the proposed legislation — Uttar Pradesh has already passed a similar law and cases under it are being registered — for violating personal liberty and deepening religious divisions.

    Congress spokesperson Jaiveer Shergill hit back, saying: “When unemployment is at 45-year high, one in three MSME is closing down, China has illegally crossed Line of Actual Control and farmers are sitting in protest, the BJP instead of working hard on solutions is busy drafting laws to prevent “love jihad”… In 1954, the Congress enacted the Special Marriage Act providing for marriage between two adults irrespective of caste and religion. And in 2020, the BJP is introducing laws to prohibit interfaith marriage to fulfil 1950 dream of the RSS of demolishing the Constitution, chaining freedom and crushing women rights.”

  • My mission is to make turnover of village industry to Rs 5 lakh crores in 2 years: Nitin Gadkari

    Union Minister for MSME Nitin Gadkari on Wednesday vowed to increase the turnover of village industry from Rs 80,000 crores to Rs 5 lakh crores in two years.

    Addressing the Confederation of Indian Industry (CII) Global MSME Business Summit, the Union Minister said, “Presently, the turnover of our village industry is Rs 80,000 crores. My mission is to make it Rs 5 lakh crores in 2 years.”

    While speaking on the theme, “Reboot to rebound: Stimulating demand and supply side,” Gadkari said that the Central government’s target is to create five crore more jobs in the next five years. “Presently, the MSME sector employs 11 crore people. Our target is to create 5 crore more jobs in the next 5 years.”

    Last month, Gadkari at Virtual Horasis Asia Meeting had said that Centre is planning to take the MSME contribution to the economic growth from 30 per cent to 40 per cent.

    “Our target is to take the MSME contribution to the economic growth from 30 per cent to 40 per cent and also increase the MSME export from 48 per cent to 60 per cent. The government is also planning to create 5 crore more jobs from MSME sectors only,” he added.

  • Shri Gadkari assures for effective steps to resolve the problem of delayed payments to MSMEs

    Union Minister for Micro, Small and Medium Enterprises Shri Nitin Gadkari has said that non payment and delay in payments to MSME enterprises will be dealt with very firmly. The Minister reiterated the Government’s commitment to solve long standing problems of the MSME sector and give it the required support so that it can realize its full potential in terms of its contribution to GDP and employment generation. The Minister was speaking at a national workshop organized by the MSME Ministry to discuss the issue of delayed payments to MSMEs and ways to deal with it. He said that the Finance Ministry has recently taken some initiatives for the sector which will go a long way in strengthening it. Shri Gadkari further assured that the recommendations of the UK Sinha committee will be implemented soon.

    Besides Ministry officials and bankers, the workshop is being attended by entrepreneurs and various stakeholders from the MSME sector. Presentations were made by TReDS, Bombay Stock Exchange, Chamber of Indian MS&M Enterprises, NeSL (National e-governance Services Limited) on the initiatives that are being taken to tackle the problem of delayed payments. Many stakeholders suffering from delayed payments, spoke about their complaints and placed suggestions before the Minister and senior officials.

    Shri Gadkari appealed all the stakeholders to use MSME Samadhan Portal so that sufficient data could be gathered about wilful defaulters, register themselves on stock exchanges and also assured them that the ministry will soon launch a marketing portal ‘Bharat Craft’ for the marketing of their products. Ministry has already notified that all companies registered with the Companies Act, 2013 with a turnover of more than Rs. 500 crore and all Central Public Sector Enterprises shall be required to get themselves onboarded on the TReDS (Trade Receivables Discounting System) platform, set up as per the notification of the Reserve Bank of India.

    The Ministry has also notified that all companies who get supplies of goods or services from Micro and Small Enterprises and whose payments to suppliers exceeds 45 days from the date of acceptance of the goods or services, shall submit a half yearly return of the Ministry of Corporate Affairs stating the amount of payments due and reason of the delay.

    Secretary MSME Shri Arun Kumar Panda assured stakeholders that all their suggestions and problems will be looked into by the Ministry.

    Shri Nitin Gadkari also Re-Launched the Credit Linked Capital Subsidy (CLCS) web portal on the occasion. CLCS is a scheme that provides 15% subsidy for additional investment up to ₹ 1 cr. for technology upgradation by MSEs. In the relaunched scheme there is an additional 10 percent subsidy to SC-ST entrepreneurs. MoUs were also signed by the office of DC, MSME with 11 Nodal Banks.

    Additional Secretary and Development Commissioner Shri Ram Mohan Mishra welcomed representatives from PSUs, Banks, Industry association and entrepreneurs in the two day long workshop on Credit Linked Capital Subsidy and Delayed Payment of MSMEs.