Industrial bodies give mixed reactions to announcements

MADURAI: The industrial bodies in Coimbatore have come out with mixed reactions to the Union Budget tabled on Wednesday.

While appreciating various features of Union Budget 2023-24, The Southern India Mills Association (SIMA) chairman Ravi Sam said that the government could have avoided the increase in basic customs duty on textile machinery from 5 per cent to 7.5 per cent as the country is not even producing 20 per cent of the machinery requirement.

“It will have some impact on the global competitiveness and also the recently announced Production Linked Incentive Scheme and PM MITRA Scheme in the absence of Technology Upgradation Fund Scheme, which was in vogue from 1 April 1999 to 31 March 2022,” he said.

Tirupur Exporters Association (TEA) president KM Subramanian said it was unfortunate that there was no announcement on continuance of the Amended Technology Upgradation Fund Scheme (ATUFS) in the Union Budget. “The TEA is however hopeful that the government would announce it in the near future,” he added.

K Maniraj, president of Kovai Power Driven Pumps and Spares Manufacturers Association (KOPMA) said the government’s plan to infuse a corpus of Rs 9,000 crore to revamp MSMEs is insufficient.

“It is also disappointing that there is no announcement in the budget on reducing interest rates on bank loans given to MSMEs during COVID-19 pandemic,” he said.

Likewise, Coimbatore Tirupur district Micro and Cottage Entrepreneur Association (COTMA) C Siva Kumar said that one of their major demands to contain high prices of raw materials has found no mention in the budget.

However, the MSMEs widely lauded efforts to enhance productivity of Extra-long Staple (ELS) Cotton, extension of Credit Guarantee Scheme for MSMEs with an infusion of Rs 9,000 crore, collateral for Rs 2 lakh crore loans to MSMEs effective from 1 April, 2023.

Though the trade and industry has already insisted that the current tax exemption limit of Rs 1 crore should be increased to Rs 2 crore, under Income Tax Act 44 AB, this tax exemption limit has not been announced, said N Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, Madurai.

In particular, it’s regrettable that there’s no announcement in this budget regarding the allocation of funds for the development of Madurai airport, central government’s share of Rs 351 crore for the AIIMS hospital in Madurai.