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Tax cut for MSMEs is a welcome gesture: Deepak Chiripal

Abolition of FIPB to ease flow of FDI is a good move which will speed up the process

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Deepak Chiripal, CEO, Nandan Denim

Last Updated : Feb 04 2017 | 11:56 AM IST

An inclusive budget with a clear focus on agriculture, infrastructure, digitisation and employment generation. Medium and small enterprises (MSMEs) are the backbone of the industry and generate the maximum employment. Tax cut for the MSMEs with an annual turnover of Rs 50 crore is a welcome gesture and will drive the growth engine as most of India's companies will get this benefit of 5 percent tax reduction which will be a relief for them.

Labour reforms was much sought demand and budget announcement will definitely help foster a conducive labour environment leading to harmonious labour relations which will further lead to higher productivity.

Textile industry is one of the largest employers in India and contributes about 14 percent to industrial production, 4 percent to the GDP and gives direct employment to around 45 million workforces.

Expanding tax net by increasing tax limit slab up to Rs 5 lakh will give more money into low-medium income groups. This move will give more money into hands of such people which will trigger more demand in markets. After short term sluggish demand due to demonetisation, this will surely help to boost the market sentiments.

Considering the benefits provided to the poor including affordable housing, it is a good budget for the poverty stricken as it mainly focuses on the rural economy.

Government has increased allocation to Prime Minister Employment Generation Scheme by 3 times which will definitely help to achieve employment generation targets. Abolition of FIPB (Foreign Investment Promotion Board) to ease flow of FDI is a good move which will reap good benefits as it will speed up the process.

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Deepak Chiripal is the CEO of Nandan Denim Ltd