Registered MSMEs should be given similar benefits as startups: Alok Shriram
Alok B Shriram, who is in the US as part of the FICCI business delegation, said that the government can promote MSMEs by giving them similar benefits as startups like tax concessions.
Alok B Shriram, CEO of manufacturing company DCM Shriram Industries, said that the government needs to promote micro, small, and medium enterprises (MSMEs) as MSMEs’ per unit of capital can create the maximum number of jobs.
Shriram is in the US as part of the Federation of Indian Chambers of Commerce and Industry (FICCI) business delegation.
"I think they should remove investment as a criterion for MSME and keep it on turnover as is done in a lot of European countries like Germany," he said.
He also suggested that like startups, registered MSMEs should be given a concessional tax. “If they are registered, they should also be given the same break as the startups which is essentially 15% tax, and they get a three-year tax holiday in a span of 10 years," he added.
This, according to him, will encourage people to come in and formalise their industry.
FM Nirmala Sitharaman invites American businesses to invest in India
He also highlighted that India offers a predictable, stable, and business-like environment which is one of the major factors for foreign companies to invest in the country. He shared that he sensed a great deal of enthusiasm about India and the investment climate in the country in his interactions with his American counterparts.
"On the whole, everyone is looking forward to working on investing in India. That difference coming in now, (is) not just transferring technology or something, but it's actually investing," Shriram said.
He observed that the first reason for it is that India has a very young and very well-trained workforce that, at least, is well educated.
"Businesses like stability and predictability. I think this is what they're getting. We may like or dislike some policies, that's a different matter, but at least the government is giving you a predictable path forward. That is a big reason to invest in India,” he said.
"Of course, it's also a corollary that China is having its own set of problems, and we should take all the benefits out of that," Shriram said.
Edited by Kanishk Singh
