Uttar Pradesh Inc is confident that although Union Budget 2019-20 does not offer direct relief to the Micro, Small and Medium Enterprises (MSME), it would nonetheless have a positive impact on the sector through higher purchasing power of the middle class and farmers as promised in the annual financial statement.
Indian Industries Association (IIA) president Sunil Vaish opined overall the Budget had provided various sops to the middle class tax payers, middle class home owners and farmers.
He lamented that the MSMEs were expecting some relief in the Budget by way of some announcement, but it was found lacking in the speech of acting finance minister Piyush Goyal, who presented the Budget in Parliament on Friday.
On the promise of sanctioning loan of up to Rs one crore in 59 minutes, Vaish claimed it was yet to translate to the ground, while industries continued to face hurdles in the wake of the commercial banks latching on to their conservative attitude.
The increase in the Income Tax exemption limit to Rs 5 lakh was a big step taken by the Centre, which would benefit MSMEs through enhanced purchasing power of salaried people and small businessmen, he added.
IIA general secretary Manmohan Agarwal underlined it was a good budget for the common man as well as for the stability of the domestic economy, which was evident from the statement that the fiscal deficit target of 3.4% would be maintained in 2019-20 also.