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 Industry & Economy - Budget
Revitalise the SME sector


India has survived the global recession as far as financial fundamentals are concerned, but there is still the problem of crisis of confidence in the market. The threat of a drought year is aggravating the market sentiments.

So, it will be tight-rope walk for the Finance Minister.While the Government should refrain from largesse, steps must be taken to rationalise taxes so that the small and medium enterprise (SME) sector, which has been hit hard in recent times, is revitalised. SMEs are the growth engine of the economy and help sustain other sectors such as services. Even if no fundamental changes can be expected in the indirect tax regime, the Finance Minister should address some of the anomalies, which have not only been a cause of distress for industry but have also been a source of the dipping market sentiments.

Since many SMEs are export driven, in the recent past it has been increasingly difficult to retain business orders and obtain credit.

Once hailed as the growth engine of the economy and a priority sector, it would be good economics and policy to rationalise taxes for them in the Budget.

Considering the sensitivity of SMEs to shock the economy, the Government must take measures to revitalise the sector, and industry as a whole.

Ravi Sinha, CEO, Track2Media

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