MSMEs welcome GST enactment | SupportBiz

Policy Notes

MSMEs welcome GST enactment

The proposal of goods and services tax (GST) enactment Finance Minister Chidambaram in the Union Budget 2013-14 has got great acceptance from the MSME community in India.

After having got a consensus from all key political parties, it is imperative that the GST law is ratified by the Parliament, to ensure implementation across the country without any hindrances or road blocks. This will be a great landmark for Indian MSMEs.

Welcoming the Finance Minister’s recommendations on GST, Rajiv Gupta, CEO, Edge Business Solutions, shares his views with SupportBiz. He says, “The implementation of GST  will enable all other government departments to align faster, for smoother implementation. We now have to see if the  Parliament  will be allowed to operate for timely clearance.”

Gupta also  points  out some of the  pain points of Indian SMEs. He says, “The proposed steps for increase in the skilled labour pool is surely a welcome one, but it will take time to  generate results. MSMEs, especially manufacturers, need immediate support on labour-related issues. There is very little which has been done to give  MSMEs a release from their day-to-day labour-related issues, caused by PF/ESI and other adherences. They need to be freed from the clutches of Inspector Raj at the local level. This is not at all visible  in any proposal  announced by the Finance Minister.”

“The other steps of enabling funding for MSMEs  and start-ups will surely encourage entrepreneurship, and will also show results in 2014,” adds Gupta.

Highlighting the focus given  to education and skill development in the 2013 Budget, Sanjaya Sharma, CEO, TATA Interactive Systems, says, “The Union Budget 2013 looks very positive for the education sector, a prerequisite for any country’s growth and development. The government’s allocation of Rs. 65,867 crore for the overall education sector and  that of Rs. 3,983 crore specifically for the primary education segment are indeed encouraging steps. I  think  there is a need for a PPP model in the sector, not just to execute the delivery, but also to deploy modern technology and infrastructure across schools, enabling the rapid proliferation of world-class education.”

Pointing out another key  announcement in the Union Budget, Sharma  says, “Another positive announcement was the allocation of Rs. 1000 crore  for the National Skill Development Fund. Every sector in India is challenged with a severe skilled manpower crunch,  and such initiatives will help achieve  the government’s target of skilling 50 million people in the 12th Plan period, including nine million in 2013-14.  However, the gap is also widening at the same time, and there will be a need for around 50 crore skilled workers across sectors in India by 2022. The  government,  and National Skill Development Corporation (NSDC )in particular, should look at employing technology as a strategic partner to fast-track and bridge this gap.”