Union Budget 2013: 100% outlay boost for micro, small and medium enterprises

NEW DELHI: Micro, small and medium enterprises (MSME) can avail the benefits they now enjoy for three years even after graduating to higher category.
The proposal came at a time many MSMEs do not grow because of the fear of losing benefits associated with staying small or medium.
In an effort to provide greater support to small units, the refinancing capability of Small Industries Development Bank of India (SIDBI) has been enhanced from existing Rs 5,000 crore to Rs 10,000 crore per year.
Around 15 new tool rooms and technology development centres will be set up with World Bank’s assistance and a budgetary allocation of Rs 2,200 crore during the 12th Five-Year Plan (2012-17) to help extend technology and design support to small businesses.
"I propose that the benefits or preferences enjoyed by them will stay with them for up to three years after they grow out of the category in which they obtained the benefit," finance minister said.
As the sector provides a large number of jobs and is crucial for production and exports, it enjoys several non-tax benefits under the Market Development Assistance (MDA) scheme, which offers funding for participation in international fairs and trade delegations to help MSMEs develop in overseas markets and Design Clinics scheme that is aimed at encouraging application of design and innovation.
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