Welcome Guest

Businessex.Com
Home News Budget impact on MSMEs

Budget impact on MSMEs

March 03, 2011 | COMMENTS ( 0 )

Budget impact on MSMEs

Monetary policies in line to bring down inflation
 
Monetary and fiscal policies have to be activated in order to contain the inflationary pressure, agreed C Rangarajan, Chairman, Prime Minister's Economic Advisory Council (PMEAC) at a conference organised by Institute of International Finance in New Delhi.


"The policy is towards control of inflation, taking inflation lower down in the range of 4 to 5 percent. We will use all policy instruments available, state policy instruments, direct intervention in grain market, as well as fiscal and monetary policy," said the PMEAC chairman. Although food inflation declined to 11.49 percent in second week of February, it still remains a concern for the government. The RBI uses tools like short-term overnight lending and borrowing rates to suck money supply to control inflation. The apex bank had raised key policy rates six times last year and again in January this year.
 
Growth-oriented budget for handicrafts sector
 
Raj Kumar Malhotra, Chairman , Export Promotion Council for Handicrafts (EPCH) lauded the Union Budget 2011-12 and termed it as a growth oriented budget for the handicraft sector. He added that the handicrafts sector has been given recognition in the Union Budget with a number of initiatives including reduction in basic customs duty on bamboo for agarbatti from 30 per cent to 10 per cent, which according to him, an important incentive for the agarbatti exporters since this would reduce the input costs.

"I am hopeful that such an initiative would help the exporters in a big way and the Council; In totality, is satisfied with this growth-oriented Budget which focuses on the long term competitiveness of economy and exports," Malhotra said. He also said that inclusion of Jodhpur for the development of a handicraft mega cluster would help increase the production and exports of wooden handicrafts and other allied products from the region. The EPCH chief added that the self assessment by the importer and exporters while filing their declaration in the EDI system would quicken the clearance of the cargo by Customs authorities and further modernize the customs administration.
 
Budget Impact: price rise in Pharmacy sector
 
The Union Budget 2011-12, has declared to implement higher excise duty as well as plans to impose Minimum Alternate Tax on Special Economic Zones (SEZ). The supposed hike in excise duty by 1 percent would result in a corresponding increase in the price of medicines by around 1.5 percent, as per insider report from the pharmaceutical sector. The pharmaceutical industry is also anxious with declaration the declaration on MAT and sees it as resulting in an adverse impact in their profit ratio as well.

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....