“Growth friendly, quite comprehensive in its approach and addresses many issues of concern to small-scale industries”, were some of the responses of associations representing a cross-section of trade and industry in Karnataka to the Union Budget 2014-15.
Karnataka Small Scale Industries Association (KASSIA) president Chidananda M. Rajamane said announcements on development of 20 industrial clusters, towards revising the definition of MSME to provide for higher capital ceiling, and creating a venture capital fund of Rs.10,000 crore for small and medium enterprises gives hope.
Other decisions that received a thumbs up were the proposal to introduce an exit policy for SSI units and setting up of a committee to address the bottlenecks in credit access to SMEs. Duty cuts on electronic imports, on chemicals used in manufacture of soaps, coal tar pitch, spandex yarn and concessions for renewable energy would have a positive effect on the MSME sector, Mr. Rajamane said. He was unhappy that it did not touch on revision of labour laws and enhancement of excise exemption from Rs.1.5 crore to Rs. 5 crore. Describing it as growth friendly, Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president S. Sampathraman said: “It is a clear departure from the appeasement approach.”
CII-Karnataka chairman Sandeep Kumar Maini said: “The budget is quite comprehensive in its approach… the overall focus is on economic activity and growth. The specific funds allocated for the development of smart cities, including one in Tumkur, will catalyse urban infrastructure development.” Chairman, Taxation Committee of Karnataka Hosiery and Garment Association, Sajjan Raj Mehta, said the budget announcement on setting up a mega-cluster for textiles in Mysore would result in creation of more jobs.
