{"id":29652,"date":"2021-05-03T12:05:19","date_gmt":"2021-05-03T06:35:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=29652"},"modified":"2021-05-03T12:05:20","modified_gmt":"2021-05-03T06:35:20","slug":"union-budget-2021-for-msme-sector","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/union-budget-2021-for-msme-sector\/","title":{"rendered":"Key Measurers Enlisted in the Union Budget 2021 for MSME Sector"},"content":{"rendered":"\n

It’s been more than 2 months since the Union Budget 2021-22 rolled out the Finance ministry. The Budget seems promising as it entails a lot of productive measures for stressed sectors, including MSME<\/strong><\/a>. During its release, the finance minister emphasized the impact of Covid-19 on the working sector and pointed out the preceding measures taken by the GOI to revive the economy. Nonetheless, in this article, we shall point out some key measures that were enlisted in the Union Budget 2021 for MSME.<\/p>\n\n\n\n

Key Measures Included in Union Budget 2021 for MSME<\/h2>\n\n\n\n

The section below encloses the key announcements made by the honorable Finance Minister Nirmala Sitaraman in Union Budget 2021 for MSME sector.<\/p>\n\n\n\n

\"Key<\/figure><\/div>\n\n\n\n

Doubling of MSME Budget Allocation<\/h3>\n\n\n\n

Considering the repercussion of an ongoing pandemic on the economy, the finance ministry has doubled the Budget Allocation for MSMEs. Rs.15700 crores has been deployed by the government in the name of the MSME sector. The aforesaid figure is approximately double the previous year’s figure, which stood at Rs, 7572 crores.<\/p>\n\n\n\n

Read our article<\/b>:MSME Udyam Registration Process & Penalty<\/a><\/mark><\/p>\n\n\n\n

Minimizing BCD on Gold and Silver<\/h3>\n\n\n\n

The basic customs duty rate for\nGold & silver has been slashed down to the previous limit, i.e., 10%. Such\nrationalization of duty will lower prices of precious metals that were\nskyrocketed in the financial year 2019.<\/p>\n\n\n\n

Increased Customs Duty on Steel, Plastic, Leather to Promote\nDomestic Production<\/h3>\n\n\n\n

The finance ministry<\/em><\/strong>[1]<\/em><\/strong><\/a><\/sup> has increased the duty from 10% to 15% on screws, steel & plastic builder wares to promote domestic manufacturing. The ministry further declared the exemption on import for duty-free items, thereby ensuring huge relief for exporters of leather, apparel, and handicraft items.<\/p>\n\n\n\n

By withdrawing exemption on the\nimport of certain leather products and finished synthetic gemstones, the\ngovernment is eyeing to increase domestic production.  <\/p>\n\n\n\n

Rationalize Duties on Raw Material for the Textile Industry<\/h3>\n\n\n\n

Textile is one of the critical\nemployment creation sectors of this country. To promote the growth of the\nsector, the finance ministry has rationalized duties on manmade textiles to raw\nmaterial inputs. The 5 % reduction in basic customs duty on nylon fiber, nylon\nchips, and caprolactam is a step in this direction. This will massively support\nthe textile industry and MSMEs across the country.<\/p>\n\n\n\n

Reduction in the Customs Duty of Metals<\/h3>\n\n\n\n

The increased iron and steel\nprices have been a matter of grave concern for MSMEs for a while. The Union\nBudget 2021 proposed to cater to this issue by reducing duty to 7.5% on semis,\nflat, & long products of alloy, non-alloy & stainless steels. Further,\nthe ministry has also canceled CVD and ADD on certain steel products. The duty\non copper scrap has also been reduced to 2.5%. This would aid local\nmanufactures in purchasing raw materials at a lower cost.<\/p>\n\n\n\n

Special Framework for MSMEs<\/h3>\n\n\n\n

For the prompt resolution of\ncases, the government has promised to strengthen the NCLT framework. The\ninculcation of e-Courts is proposed to come to effect in the upcoming months.\nThe Budget also proposed to set up a special framework for MSMEs.  <\/p>\n\n\n\n

In view of the above, we have drawn certain points highlighting the benefits of Union Budget 2021 for MSME sector:-<\/strong><\/em><\/p>\n\n\n\n