MSMEs call for increased budgetary provision for the sector

Micro, Small and Medium Enterprises (MSMEs) have appraised the State Finance Department on the need for a significant increase in support to industries in the upcoming Budget 2025-26 to meet government commitments to up and coming MSMEs. Under the Enterprise Year campaign, to support private industrial parks and target to transform 1,000 identified enterprises. ₹ 100 crore companies each.

In a meeting with the Finance Minister, leaders of the Kerala State Small Industries Association (KSSA) said that Kerala has made great strides in encouraging the start of new enterprises. Upcoming and already established new ventures need financial support. Besides, setting up of 100 private industrial estates requires support of at least ₹ 300 crore. Mission 1,000 requires a budgetary support of Rs 2,000 crore.

KSSA also said that at least ₹ 5,000 crore additional budget is needed to support the MSME sector as a whole, a pre-budget memorandum submitted to the finance minister said. There should be sufficient funds to pay subsidy on loans on time to avoid penal interest and other bank actions, they said.

Taking into account the importance of the economy, they have requested the government to remove the current limit of Rs 3 financial support to private industrial parks, demanding to provide support to small industries. Crore

Industrialists also say that the government should introduce a legal system to protect the existing industry from baseless complaints. The memorandum mentions that the government can also take collective steps to purchase and distribute raw materials as support to the industry. This is necessary because there is a continuous shortage of raw materials such as cement, sand, iron, aluminum.

KSA has also requested the government to increase investment in infrastructure for the development of the tourism industry. Barren land that is not cultivated should be used for industrial purposes. In addition to this, the association said that the government should take the lead in removing the garbage in the river and distributing the sand extracted from the river.