The Union Government should take steps to bring in investments in the MSME sector and incentivise job creation, said A.V. Varadarajan, former president of Coimbatore District Small Industries Association (CODISSIA).
Mr. Varadarajan told The Hindu that it was essential that the government took “some drastic and totally unconventional steps” to revive the economy.
Since an emerging area of opportunities was the Defence, the Government should simplify the processes for Defence procurements from MSMEs and should have procurement offices in each State capital and also in MSME hubs such as Coimbatore, Pune, Thane and Surat, he said.
Industries can be classified under three categories: normal, those that provide at least 25 jobs for every investment of ₹1 crore, micro and small industries that provide at least 50 jobs for every ₹1 crore invested. Any new industry that generates more than 25 jobs in three years should be exempted from providing the source of income. The plant and machinery and jobs created should be certified by the authorities concerned. In order to encourage employment generation, the wages paid by the employer must be allowed for standard deduction while calculating Income Tax. The State Government should also provide exemptions for establishment of new industries and should simplify the process for approvals, he said.
