The important role played by MSMEs in the economy was even acknowledged in this year's Union Budget, which pressed upon additional credit support to this undercapitalised sector.
The government proposed to reduce the Income Tax for those companies with an annual turnover of upto Rs 50 crore to 25%. This aims to give the MSMEs a reduction of 5% from the current applicable rate of 30 percent
Breaking away from the colonial-era tradition the budget date has been advanced to 1stFebruary 2017 and the Railway budget's solo presentation has been done away with as it is unified with the Union Budget.
Among soothers from the government is Prime Minister Narendra Modi's speech on the last day of 2016 providing sops to promote small business owners and farmers.