4 crore people in West Bengal to benefit from Budget largesse for MSMEs

KOLKATA: Samar Das, an employee of a chemical unit near Kashipore, was happy that his firm, previously classified as a medium-sized enterprise, would now be termed a small enterprise. This change would result in more work for the firm, which employs 15 people.
The announcement in this year's Budget would benefit close to 4 crore people - one-third of the population of Bengal - in the state who directly or indirectly depend on MSMEs for a livelihood.

In the Budget, FM Nirmala Sitharaman has enhanced investment and turnover classifications for micro, small, and medium enterprises. This change would result in many enterprises, previously not treated in this category, now falling under it, making them eligible for various government and other tenders.
H K Guha, the president of the Federation of Associations of Cottage & Small Industries, pointed out that it was a long-standing demand of the sector. "The present Budget translates the word into action to make MSMEs strong and internationally competitive by raising their investment by 2.5 times and turnover by 2 times, respectively, to retain the benefits offered to them by remaining in the ambit of MSMEs," he said.
Rishabh C Kothari, CEO of CKC Fragrances P Ltd and member of the National MSME Board, felt that the Budget brought a much-needed boost to MSMEs, recognising their role as the backbone of India's economy. "The increase in credit guarantee schemes and reduced compliance burdens will improve access to finance and ease of doing business," he added. Sanjay Goenka, owner of Hindcon, a chemical MSME, agreed, saying it would help the industry to a great extent.
According to Lalit Agarwal, chairman of Glean Industries dealing with plastics in the MSME sector, the increased support for MSMEs through enhanced credit guarantees, customised credit cards for micro enterprises, and an uplift in the classification limit will accelerate their expansion and resilience.
Sudipta Narayan Roy, MD of Powell Group, said the enhanced credit guarantee cover is likely to increase global competition and lead to technological advancement in the MSME sector.
Incidentally, the MSME directorate under the state govt has identified 238 clusters, of which six are in Kolkata, 27 in Howrah, 19 in East Midnapore, 18 in Murshidabad, and 16 in both Malda and North 24 Parganas.