Pre-Budget meet: MSME stakeholders seek tech upgrade, PLI benefits, cut in GST

Stakeholders from the micro, small and medium enterprises (MSME) sought a reduction in GST, technology upgrade, and production-linked incentive scheme benefits for various segments in a pre-Budget meeting with Finance Minister Nirmala Sitharaman on Saturday.

The meeting aimed to seek inputs and suggestions for the Budget for 2025-26, expected to be presented on February 1.

Members from the Association of Women Entrepreneurs of Karnataka (AWAKE); Karnataka SC and ST Entrepreneurs' Association; Plant-Based Food Industry Association (PBFIA); Ambala Scientific Instruments Manufacturers' Association (ASIMA); Rajasthan Footwear Manufacturers' Association were among the participants at the meeting.

The All-India Plastics Manufacturers' Association; All India Manufacturers' Association; Gujarat Chamber of Small Industries Association; Federation of Associations of Cottage and Small Industries (based in West Bengal); Federation of Andhra Pradesh Small and Medium Association; and Laghu Udyog Bharati were also present during the interaction.

Addressing the media after the meeting, Om Prakash Gupta, All India General Secretary of Laghu Udyog Bharati said it raised the issue of gaps in technology space and skill development.

"We suggested that if the GeM portal is linked to Udyam registration. It will elicit a good response. It (GeM) has crossed annual turnover of Rs 4 lakh crore, therefore it is time now to give it a global perspective," Gupta said.

"We are hopeful that our suggestions will be considered from the deliberations held today (Saturday)," he added.

EPPC Rao, President of the Federation of Andhra Pradesh Small and Medium Industries Association, said MSMEs are the backbone of India and strengthening them is most important.

"We have sought technology upgrade and GST exemption for Industry 4.0 items. The time has come to revive the issues of MSMED Act. Bankers should follow the guidelines of the RBI for revival of sick units," Rao told reporters.

All India Plastics Manufacturers' Association Chairman Arvind Mehta said, "We have sought a technology upgrade fund for the sector on the lines of the one available for the textiles sector. We also requested exemption of GST on (plastic) recycling machines and reduction of GST on raw materials."

Mehta further said his association has demanded a PLI scheme for the sector.

Sudhir Jha, National Convenor of All India Manufacturers' Association, said, "We have requested that PLI be considered for power electronics products because most of the items from the manufacturing of industrial products to the household equipment consists of power electronics products".

He asserted that domestic manufacturers cannot scale up unless performance linked incentives are provided to them.