The trade bodies in Madurai offered a largely disappointed reaction to Budget 2025 presented in Parliament by Union Finance Minister Nirmala Sitharaman on Saturday as they could not find anything substantial for Tamil Nadu.
Tamil Nadu Chamber of Commerce and Industry president N. Jegatheesan said it was disappointing that there was nothing for Tamil Nadu in the Budget.
Agri and All Trade Chamber president S. Rethinavelu said he was disappointed with the Budget as it had not addressed most of the important recommendations made in the Economic Survey under the present economic slowdown.
Domestic economic growth could not be achieved unless business sector, especially in the MSME sector, was made free from complying with procedures and regulations at enormous cost and time, he said.
Special concessional Income Tax rates ought to have been announced for the MSME sector to enhance manufacturing GDP and generate more employment opportunities, he said.
He also welcomed removal of IT up to an annual income of ₹12 lakh.
Madurai District Tiny and Small-Scale Industries Association president A. Kodeeswaran said the Reserve Bank of India should be urged to ensure that banks fulfil the loan needs of MSMEs under the CGTMSE scheme by allocating a certain percentage of their MSME loans to this scheme.
New industrial estates should be provided with a 90% subsidy for road and street light infrastructure should be augmented under the IID (Integrated Infrastructure Development) scheme. If MSME units installed solar panels, they should be given a 25% subsidy through SIDBI, he said.
The increase in the upper limit for micro and small enterprises under the CGTMSE scheme from ₹5 crore to ₹10 crore was welcomed. The Budget had also increased loan subsidy for startups from ₹10 crore to ₹20 crore. He also welcomed the rise in tax ceiling in personal income tax to ₹12 lakh under the new IT scheme.
Tamil Nadu Food Grains Merchants Association president S.V.S.S. Velshankar said the Budget aimed at initiating transformative reforms across six domains. Dhan-Dhaanya Krishi Yojana partnering with the State governments to cover 100 districts would definitely motivate agricultural productivity. Rural prosperity and resilience partnering with State governments would help the rural economy and employment in agriculture.
Thrust on domestic manufacturing of lithium batteries used for electric vehicles and mobile phones was a welcome move. He also welcomed the tax rebate being provided for the taxpayer up to ₹12 lakh.
Absence of proposals and announcements of new metro trains and allocation of funds for the previously announced Budget schemes was disappointing. The Madurai – Thoothukudi Industrial Corridor announced in the previous Budget had also not been given any allocation, he said.
Anitha Selvaraj, Assistant Professor of Economics, Lady Doak College, said the Budget had placed a strong emphasis on expanding medical education in the country.
K. Suganya, Assistant Professor, Research Centre and Department of Economics of the college, said the Budget introduced several transformative measures such as a new tax structure with rates ranging from 5% to 30% across various income slabs, enhanced support for MSMEs through credit cards with ₹5-lakh limit, and a substantial focus on agricultural development through initiatives like the Prime Minister Dhan-Dhaanya Krishi Yojana.
P. Poongodi, another Assistant Professor of Economics of the college, said enhancing India’s agricultural sector was crucial for ensuring food security and the government had outlined several initiatives to achieve this goal.
F. Shiny Gloriana, an M.A. student, said introducing farmers to natural farming supported by certification and branding would pave way for India to thrive towards Sustainable Development Goal.
Published - February 01, 2025 11:58 pm IST
