Union Budget 2011-12 Favourable for MSMEs: IndiaMART CEO Mr. Dinesh AgarwalBy Indiamart.com, PRNE
Sunday, February 27, 2011
NEW DELHI, February 28, 2011 -
- 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
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
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
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.
Media Contacts Pawandeep Kaur Manager - PR T: +91-120-3911000 F: +91-120-2424943 E: firstname.lastname@example.org
Media Contacts: Pawandeep Kaur, Manager - PR, T: +91-120-3911000, F: +91-120-2424943, E: pr at indiamart.com
Tags: February 28, India, IndiaMART.com, New delhi