The Union Budget 2025-26 has drawn mixed reactions from the industry associations in Tiruchi region.
Terming the Budget “growth-oriented and inclusive,” P. Gopalakrishnan, Regional Chairman, Southern Region, Federation of Indian Export Organisations (FIEO), said the Budget has sought to lay a strong foundation for development of people, industries and exports. It presents a balanced approach by focusing on economic growth while ensuring inclusivity.
“One of the most significant highlight [of the Budget] is the increase in the income tax exemption to ₹12 lakh. This will provide much-needed relief to individuals, improving their financial stability and increasing disposable income, which, in turn, will drive consumption and economic activity,” Mr.Gopalakrishnan said.
The Mission for Cotton Productivity will significantly benefit the textile industry, ensuring higher yields and better-quality raw materials, making Indian textiles more competitive in global markets, Mr.Gopalakrishnan said.
Initiatives to support MSMEs and first-time entrepreneurs is a crucial step toward fostering innovation and self-reliance. Proposals such as introduction of credit cards for micro enterprises, loan schemes (₹2-5 crore) for women, SC/ST entrepreneurs, and the manufacturing mission will generate employment and accelerate industrial growth. The enhanced Credit Guarantee Cover of ₹10 crore for MSEs and ₹20 crore for startups will encourage entrepreneurship and provide much-needed financial security to budding enterprises.
The Export Promotion Mission, Bharat Trade Net, and improved warehousing for air cargo will improve ease of doing business for exporters. Tariff removals on lifesaving medicines, looms for technical textiles, lithium-ion battery components, and duty-free inputs for handicraft and leather will not only reduce costs for industries but also enhance India’s position as a major global manufacturing hub, Mr.Gopalakrishnan added.
However, the Tiruchi District Tiny and Small Scale Industries Association (TIDITSSIA) has expressed disappointment over the lack of announcement on any of the “anticipated schemes” for MSMEs in the Budget. Other than loan schemes there is no other significant announcement for the MSMEs, especially in terms of reduction in interest rates, incentives or government contributions for employees Provident Fund and ESI. “We hope for a favourable change towards MSMEs in the forthcoming Budgets,” said P.Rajappa, president, TIDITSSIA, in a statement.
Mr.Rajappa, however, expressed happiness over the raising of the income tax exemption limit and tariff reduction/removal for lithium ion batteries would spur the growth of the EV automobile industry. This would benefit automobile industry based MSMEs, he said.
Published – February 01, 2025 06:01 pm IST