8 Supplement with Intelligent Entrepreneur + March 2013
DECODING BUDGET 2013
OVERVIEW
Broad impact of Budget 2013 on SMEs The government has extended non-tax benefits for India’s small and medium entrepreneurs
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Business incubators play a crucial role in supporting new businesses, which start small
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he government has in the past taken several initiatives in making the micro, small and medium enterprises (MSME) more efficient and competitive. These include a number of schemes introduced with a focus on marketing and promotion, technology infusion, improvement of credit facilities, skill development programmes and other export incentives. These include the Marketing Assistance Scheme, Interest Subsidy Eligibility Certification, International Cooperation Scheme, the Trade Related Entrepreneurship Assistance and Development (TREAD) Programme for women, and the Focus Market Scheme (FMS) for exporters to promote exports to new markets and countries. To encourage the MSME sector, the Finance Minister proposed to extend these
non-tax benefits to these units for three years even after they grow beyond the MSME category.
INVESTMENT IMPETUS Another important step in this direction has been the enhancement of refinancing capability of Small Industries Development Bank of India (SIDBI) from the current level of `5,000 crore to `10,000 crore per year. Business incubators play a crucial role in supporting new businesses, which start small. The new Companies Bill provides for companies to spend two percent of average net profits under Corporate Social Responsibility (CSR). It is proposed that funds invested in technology incubators located within academic institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR