FICCI President Sandip Somany said India Inc expects the Narendra Modi-led NDA government to unleash bold reforms to overcome existing challenges, including the rural distress and job-creation.Press Trust of India
Few days after MSME Minister Nitin Gadkari said Prime Minister Narendra Modi is expecting employment to increase in the MSME sector, Federation of Indian Chambers of Commerce and Industry (FICCI) President Sandip Somany made a case for creation of a separate ministry for employment to effectively coordinate efforts to generate jobs.
Somany termed it one of the key challenges for the new government.
Besides Gadkari, who maintains that the MSME portfolio is closely associated with the country's growth rate and employment potential, Commerce Minister Piyush Goyal has also been vocal recently about boosting employment in the MSME sector.
Addressing the G20 Ministerial Meeting on Trade and the Digital Economy, he supported greater participation of MSMEs in developing countries both in domestic and global trade, as they are crucial for jobs and income generation, on which the livelihood of millions is dependent.
FICCI President Somany said India Inc expects Narendra Modi-led NDA government to unleash bold reforms to overcome existing challenges, including the rural distress and job-creation, and push the economy to a higher growth trajectory, after it swept to power with an emphatic mandate in the recent Lok Sabha elections.
The FICCI chief added that the cost of doing business is very high in India and while there is a need for reducing the interest rate by at least 100 to 150 basis points, corporate tax rate too must be cut, for all companies, to 25 percent from the current 30 percent.
Former Finance Minister Arun Jaitley had earlier announced lowering of corporate tax rate to 25 percent for businesses with turnover of up to Rs 250 crore, a decision he said will benefit the entire MSME sector which accounts for 99 percent of companies filing taxes. However, for businesses with over Rs 250 crore turnover, 30 percent tax remains.