Budget 2020: Gifts that small business sector wants from Nirmala Sitharaman on February 1

Budget 2020: FM Nirmala Sitharaman is going to present her second Union Budget (#BUDGET2020ZEE) and she has a strong challenge to boost the Indian economy by increasing the purchasing power capacity of the common man while at the same time she needs to enhance liquidity for the business segment. In this line, the major thrust she needs to give to small business, which generates around 80-85 per cent of the jobs in the industrial sector as they work as vendors to the giant players. Sensing their importance in the industrial sector small business players are demanding the removal of tax related hassles like limitations on the carry forward and set off losses, etc.

Speaking on the demand from Nirmala Sitharaman in Budget 2020, Abhishek Kumar, Co-founder & COO at MyGate said, “The country is making significant progress in terms of technology adoption, with very positive consequences. Its continuation is, however, highly dependent on investment in digital infrastructure. We believe that the government should take relevant steps to strengthen the country in this regard, particularly beyond the major metros. From a taxation perspective, removing the current limitations on the carry forward and set off losses, easing of ESOP taxation and relaxation on the applicability of TDS provisions to improve working capital availability would give a huge boost to start-up India.”

See Zee Business Live TV streaming below:

Satya Prabhakar, CEO & Founder at Sulekha.com said, "In the next 10 years, $4 trillion could be added by the services sector which currently has nearly 16 million SMEs. These service SMEs are the real engine driving our country’s economic growth and the Union Budget 2020 (#BUDGET2020ZEE) should seek to address the challenges faced by them head-on." 

Satya said that some ideas include better access to credit through subsidies for repaying loans on time, reduction of GST for marketing investments, subsidised training programs, and occupational insurance for workers in hazardous jobs. To achieve India’s vision of a $5 tn economy by 2025, it is essential to mobilize the development of SMEs in the services space, they say.