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MOTORINDIA
l
April 2012
ACMA
welcomes thrust on
manufacturing sector
ACMA has welcomed the thrust
given in the Union Budget on the
manufacturing sector, especially
MSMEs. It has also expressed
satisfaction at the thrust on infra-
structure development, upliftment
of the rural economy and signifi-
cant outlay for promotion of the
social sector, including education,
skill development and healthcare.
Complimenting the Finance
Minister, Mr. Pranab Mukherjee,
Mr. Vinnie Mehta, ACMA Execu-
tive Director, said he has outlined
concrete steps towards imple-
mentation of the Direct Tax Code
(DTC) and GST.
MSMEs constitute over 70 per
cent of ACMA’s membership,
and access to capital has been one
of the major constraints for the
sector. The setting up of the Rs.
5,000-crore ‘India Opportunity
Venture Fund’ will enable the sec-
tor to have access to the much-
needed capital.
“We are also glad that the
weighted deduction of 200% on
budget reaction
Mr. Vinnie Mehta, ACMA Executive Director
expenditure on R&D has been ex-
tended for another 5 years, which
will motivate the industry to focus
on innovations and new product
development. Further, shortage
of skilled manpower has been an
issue of significant concern to
the industry; the introduction of
weighted deduction of 150% on
expenditure on skill development
of employees will help in mitigat-
ing the concern”, Mr. Mehta said.
However, he said enhancement
of excise duty would adversely
impact the prices of vehicles and,
in turn, their consumption. This
is of concern to the auto compo-
nent sector as it grows in tandem
with the vehicle industry. Further,
increase in customs duty on the
‘flat-rolled’ steel from 5 per cent
to 7.5 per cent could unfavourably
impact the sector as this is one of
the key input materials for the in-
dustry.
w
The setting up of the Rs.
5,000-crore ‘India Opportunity
Venture Fund’ will enable the
MSME sector to have access to the
much-needed capital.