The State Budget for 2023-24 has given a central place to the development of micro, small and medium-scale industries and programmes such as Make in Kerala, development of multi-storey industrial estates, renovation of existing industrial estates, and rather generous support for launching new enterprises.
Kerala State Small Industries Association (KSSIA) president A. Nizaruddin and general secretary P.J. Jose welcomed the Budget setting aside ₹212.70 crore out of a total allocation of ₹1,259.66 crore for small industries and said the Budget had given reasons for hope.
The Finance Minister said in his Budget speech that a study by the Centre for Development Studies had revealed that around ₹1.28 lakh crore worth goods had been imported into Kerala in 2021-22. Of them, 92% came from other States, while the State export during the period was ₹74,000 crore. Of this, 70% went to other States.
Taking advantage of the new awakening in the manufacturing sector in the State and taking forward the ‘one lakh enterprises scheme’, the Finance Minister said that goods and products could be indigenously manufactured to take advantage of the trade gap. An analysis of the local production potential and involvement of entrepreneur groups and science and technology research institutions is under way.
The Budget has also set aside ₹2.5 crore to help renovate Micro, Small and Medium Enterprises (MSME) units that are in trouble. Besides, ₹18 crore has been allotted for providing margin money to nano units. An amount of ₹2.5 crore has been set aside for supporting units that are doing well.
Proposals for modernisation and expansion of seafood processing parks, ₹150 crore for ironing out problems in power supply, and ₹2.5 crore for units hit by floods and the pandemic will also help MSMEs, said the MSME sector leaders.
The direction in the Budget to extend the date of filing appeals under GST Act up to September 30 will help MSMEs. This was one of the suggestions put forward by the KSSIA during pre-budget discussions.
The proposal for an industrial corridor centred on the Vizhinjam port project will give a new impetus to the industrialisation of the State, KSSIA leaders felt.
However, the ₹10 crore set aside for developing private industrial estates is insufficient, the KSSIA said. The money will not be enough even to support four industrial estates under the new initiative as each of the estates can avail up to ₹3 crore support.
Small and Medium-Sized Enterprises (SMEs) will also suffer due to proposals for increasing building tax rate, hike in petroleum fuel prices by 2%, and 20% increase in fair price for land as well as the hike in stamp duty on registration.
