Gujarat government in its state budget for 2017-18, has announced a special package of Rs.1,000 crore for the micro, small and medium enterprises (MSMEs) sector. This decision comes close on the heels of the Union Budget 2017-18 announcing a reduction in the income tax for smaller companies with annual turnover up to Rs.50 crore to 25 per cent.
The special package, announced by deputy chief minister Nitin Patel, who also holds the finance portfolio, offers enhanced assistance to MSMEs for market development, technology acquisition, etc.
Gujarat is home to more than three lakh MSME units, with many of those in the textile and garment sector. The special package is likely to give a major breather to these units, especially for the ones that suffered losses due to cash crunch in the last two months of 2016, following demonetisation of high value currency notes.
Apparel and Textile News, Apparel Talk, Indian Apparel