Press release from Business Wire India
Monday, February 28, 2011 06:22 PM IST (12:52 PM GMT)
Editors: General: Economy; Business: Financial Analyst, Information technology; Technology
Union Budget 2011-12 Favourable for MSMEs: IndiaMART CEO Mr. Dinesh Agarwal
New Delhi, Delhi, India, Monday, February 28, 2011 — (Business Wire India) —
–Progress on GST commendable; look forward to speedy implementation
–Appreciate allocation of Rs 5000 cr to SIDBI for refinancing incremental lending by banks to MSMEs; however, better increase was expected
–Move to take rural broadband connectivity to all the 2.5 lakh Panchayats in the country in next three years to provide much-needed empowerment to rural India
–Emphasis on the use of technology/ Internet in rural areas to bring efficiency in the system
–No major steps to increase supplies in order to tackle inflation announced in the Budget
Commenting on the Union Budget 2011-12, Mr. Dinesh Agarwal, Founder and CEO, IndiaMART.com, said, “We welcome the Union Budget 2011-12 presented by the Honourable Finance Minister Pranab Mukherjee today.
We are delighted that the FM has taken into consideration the need to simplify the tax procedures for small businesses. This was one of the key expectations we had from this budget. The progress on GST is also commendable and we look forward to its speedy implementation this year. This will synchronise the sale of goods across the country and simplify taxation for MSMEs.
While we appreciate the allocation of Rs 5,000 cr to SIDBI for refinancing incremental lending by banks to micro, small and medium enterprises, we expected better increase in the outlay to cover as many of these firms possible.
Presently, credit is the main challenge facing the Indian MSMEs. With the increase in priority sector lending targets for the PSBs, it can serve some of the funding requirements of MSMEs and help them scale up.
Lowering of the surcharge tax limit on corporate tax to 5 per cent will also help the small and medium businesses who will be able to use the capital for further expansions.
Besides, the government’s decision to take the rural broadband connectivity to all the 2.5 lakh Panchayats in the country in next three years is a right step towards nation-building which will provide much-needed empowerment to the rural India. Also, the emphasis on the use of technology/ Internet for e-governance will bring effectiveness and efficiency in the system.
However, we did not find any major steps to increase supplies in order to tackle the inflation in the Budget. This is the need of the hour and we urge the government to look into this as well.
Now, we believe the emphasis should be laid on implementation, which will further ensure overall inclusive growth of the economy.”
IndiaMART.com is India’s largest online B2B marketplace connecting global buyers with suppliers through business directories, online product catalogs, buy-sell offers, industry specific marketplaces, printed media and trade shows participation.
Founded by Mr. Dinesh Agarwal (CEO), the company has a pan-India presence in over 100 cities. With over 3500 employees located across 63 offices in the country, IndiaMART.com offers an extensive range of value- added products and services to its 1 million registered members and nearly 5 million global buyers across various industries and verticals.
IndiaMART.com has won numerous awards over the years and has been widely covered by several media for its pioneering role in promoting SME business in the country. Its existing investors include Intel Capital and Bennett, Coleman & Co. Ltd.
Pawandeep Kaur, Manager – PR, IndiaMART, +91-120-3911000, [email protected]
ECONOMY, Financial Analyst, IT, TECHNOLOGY
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