A significant number of MSMEs dot India’s manufacturing landscape. It may be noted that these many MSMEs are the primary drivers for sustained growth of the country’s GDP. India banks on these units in its onward march to greater heights.
More often than not MSMEs face existential crises in their endeavours to stay afloat and succeed in business. Lack of sustainable work, capital, affordable marketing channels and excessive government regulations hamper these industries to blossom.
It is heartening to note that the Government of India has reduced the corporate tax rate to 25 percent for entities with annual revenue of up to `250 crore. The Union Budget 2018 has also earmarked `3 trillion for the development of MSME sector under the Pradhan Mantri Mudra Yojana, popularly called the MUDRA scheme, as many of the MSMEs operate within the prescribed limits. This is a welcome move.
The incentives announced in the budget will, without any doubt, spur MSMEs to enhance their production capacities. In a country where millions join the workforce every year, MSMEs play a pivotal role by accommodating a large number of job aspirants including those from rural and remote areas. In this way, they reduce the regional imbalances, enhance equitable distribution of national income and wealth, besides playing a complementary role to large industries as ancillary units.
As MSMEs are the bulwark for industrial growth, onus is on us that we encourage them to stay competitive through rigorous pursuits of skill development which will enhance research and innovations leading to justifiable growth.
I would like to inform readers that it is a matter of satisfaction for the machine tool industry that the Government has extended concessional customs duty on critical imports to all categories of CNC metalworking machine tools.
Vibrant manufacturing is important for a country’s growth. With the Indian manufacturing industry showing its readiness to embrace advanced technologies, it is imperative that we develop MSMEs to the next level so that they can take manufacturing to greater heights.
President, Indian Machine Tool Manufacturers’ Association