Industry sees pro-MSME momentum in budget

From the perspective of the printing and packaging industry, in a key announcement for Medium, Small and Micro Enterprises (MSMEs), a credit guarantee scheme will be launched to facilitate term loans to purchase plants and machinery without collateral or a third-party guarantee. These companies will continue to get credit support if they are classified as a ‘special mention account.’ Additionally, the limit of Mudra loans increased from Rs 10-lakh to Rs 20-lakh.

Pankaj Poddar, the group CEO of Cosmo First, said, "The introduction of the credit guarantee scheme for MSMEs and facilitating term loans to MSMEs for purchase of equipment without collateral or guarantee will go a long way to enhance access to capital in the sector."

In addition, technological support packages will also be available for MSMEs. The Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve the MSMEs. This will ease the funding challenge for MSMEs and they will be free to expand.

S Sunil Kumar, country president of Henkel India said, "With a significant allocation of Rs 11.11-lakh crore towards capital expenditure for FY 2024–25, the government is paving the way for robust infrastructure development and sustainable economic growth in India." Kumar added, "Over the next five years, the focus on large-scale projects has the potential to transform the economic landscape, reduce logistical costs, and improve the efficiency of transportation networks. It is also promising to see the government taking measures to boost job creation in the manufacturing sector, a key contributor to the country’s GDP."

The government has also promised an internship scheme that would enable one crore youth to intern in top companies over five years. Employment-linked incentives, including wage support for first-time employees, will be provided for at least a month. Rajesh Khosla, the CEO of AGI Greenpac, said, “The focus on employment-linked skilling initiatives is particularly encouraging. By incentivising job creation, the government is empowering young talent and fostering a more productive workforce."

The Union Budget also gave foreign corporations a tax break. Corporate tax on foreign companies was reduced from 40% to 35%. This move is expected to attract foreign capital in a big way.

For consumers, the budget has reduced the prices of articles like mobile phones, gold, silver, and platinum. However, telecom equipment, nonbiodegradable plastics, and PCV flex banners will become costlier. This is expected to have some impact on the printing and packaging industry as well.

Meanwhile, according to the new tax slabs, those earning between Rs 6 and 7-lakh per annum will now pay 5% tax instead of 10%. Those earning between Rs 9 and 10-lakh will now pay 10% instead of 15%. According to the Budget 2024 announcements, salaried taxpayers can now save Rs 17,500 in income tax per the new regime.

Sitharaman promised to set up 1,000 industrial training institutes and provide 20 lakh youth with skill-based training. The finance minister said the government aims to reduce the inflation rate to 4%. There would be an increased focus on job creation and increasing consumption, potentially benefiting consumer goods, real estate, and auto sectors.

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