Industries, chamber of commerce welcome union budget

P. Vishwanath, president, Mysore Industries Association.
| Photo Credit: M.A. SRIRAM

Kurubur Shanthakumar, president, State Sugarcane Cultivators Association.
| Photo Credit:
M.A. SRIRAM

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has evoked a mixed response with the industries welcoming it, while the farmers and left parties have said it was disappointing.

P. Vishwanath, president, Mysore Industries Association (MIA), and Suresh Kumar Jain, secretary, welcomed some of the measures proposed in the budget and said that it was growth-oriented. Term loans of ₹2 crore for SC/ST women entrepreneurs, an increase in credit guarantee cover for MSMEs from ₹5 crore to ₹10 crore, and the announcement of a customised credit card for MSMEs with ₹5 lakh limit are welcome measures that will have a positive bearing on entrepreneurs and MSME sector, according to MIA.

Similarly, enhancement in credit and loan for street vendors under PM SVANidhi, the announcement of ₹1.5 lakh crore for infrastructure development for all States, and tax exemption on income up to ₹12 lakh are other welcome features of the budget, the MIA said.

However, it said that doubling the investment and turnover limit in the classification of MSMEs was not industry-friendly. Besides, there were no projects specific to Karnataka, according to MIA.

K.B. Lingaraj, president, Mysore Chamber of Commerce and Industry, said the Union Budget for 2025-26 was not only growth-oriented but had proposals that were friendly to the industries and taxpayers in general. Welcoming the tax exemption on income up to ₹12 lakh, he said it will spur consumption and spending and trigger economic activity.

Proposals to develop 50 tourist destinations in the country to promote tourism, modification of UDAN schemes to add 120 destinations, infrastructure development in urban areas and allocation of ₹1.5 lakh crore for the purpose, enhancement of credit limit under Kisan Credit Cards for farmers, the establishment of farmers producers companies, exemption of taxes on 36 life-saving drugs, etc. are some of the measures that will benefit the general public, said Mr. Lingaraj.

However, Sugarcane Cultivators Association president Kurubur Shanthakumar said the budget has nothing concrete for farmers. He said there was no reference to waiver on crop loans or enacting a law making minimum support price mandatory. He said the budget has exposed the Centre’s inability to comprehend the real issues plaguing the agricultural sector and the farmers of the country and has brought disappointment to the farming community.

Mr. Jagadish Surya, District Secretary, CPI (M), said there was nothing in the budget to control the spiraling price rise of essential commodities. He also said the slew of projects announced for Bihar was obviously due to the forthcoming elections in that State.

Pointing out that agriculture and allied sectors contributed 16% to the budget outlay and yet the allocation to these sectors has been curtailed, said Mr. Jagadish. He said the agriculture sector employed 44.1% of the population in 2017-18 and it increased to 46.1% in 2023-24. Yet, no steps have been initiated to create employment.