The economic survey presented in the Parliament today is a indication of conversion of focus of the Government now on boosting growth and development of SME sector which is having much potential for investments, savings, exports, growth and jobs, as the primary engine to drive Indian economy which will accelerate and sustain a real GDP growth of more than 7 percent per year-said the Confederation of All India Traders (CAIT) while reacting on the economic survey. Since Corporate sector is not able to deliver the growth, the Government will now focus on non corporate sector to provide sustainable growth of economy.
B.C. Bhartia National President and Praveen Khandelwal, Secretary General of the CAIT said that economic survey also indicates the priority of the Government to convert informal economy into a formal economy which is a welcome step. The approach of the Government envisaged in the economic survey leads to understand that support policy will be announced in the Budget to ensure growth and development of SME sector at a full pace since it is the second largest sector after agriculture for job creation and more inclined for savings as well. It appears that Government will enhance exemption limit under Income Tax and will lay out a policy to encourage savings in the Country.
Both trade leaders further said that in order to sustain the growth investment has been considered as key driver for simultaneous growth in demand, jobs, exports and productivity but a careful approach is needed as to identify which sectors really need investment. The CAIT also hoped that some sort of regulatory mechanism will be announced for the e commerce sector so that it cannot avoid tax obligations. The increase in rural wages is clear indication that the economy is moving to transform rural India with upgradation and modernisation to ensure its active participation in the economy. This will lead to a balanced overall economic growth removing disparity between rural and urban India. This will help in employment generation at local level and will stop shifting of rural pollution to urban population.
Both Bhartia and Khandelwal hoped that Union Budget to be presented tomorrow will be a document to announce major policy initiatives for SMEs to free them from clutches of multiple laws and Authorities and Government expect them to do fair business practices and make them competent to face global challenges and provide better opportunities for exports.