With the West Bengal Budget promising incentives for Micro, Small and Medium Enterprises (MSMEs) in the state, the sector is optimistic with the boost for small businesses.
Though the details of incentives provided to MSMEs in the Budget are yet to be chalked out, the confidence the BJP government has shown so far has given a major impetus to MSME business owners.
“In this Budget, the capital expenditure increased from Rs 22,000 crore to Rs 72,000 crore. This is the impact of the double engine government,” said Jagannath Chattopadhyay, Minister, Higher Education & Technical Education, Training & Skill Development.
On World MSME Day on June 27, owners spoke about the importance of their role in helping bigger businesses flourish.
Growth of the economy begins with MSMEs. Many speak about the lack of industrial policy in the erstwhile Trinamool Congress (TMC) government, which impacted the state’s economic prospects.
“The new government’s mission is very good for us. The incentives which were stopped will restart. There is still a lot of work to do, but the future of Bengal’s MSME sector is very bright,” said Goutam Das, Nadira District Chairman of the Federation of Small and Medium Industries (FOSMI), West Bengal, and an MSME committee member of the Bengal Chamber of Commerce & Industries.
Nootably, back in 2006, businessman Lalit Lakhani was disappointed after spending Rs 15 crore to set up a plant for the Tata Motors' Nano car project, which did not take off.
Ultimately, he had to shift the project to Pune to supply automobile parts to a Nano car factory. His company then started a packaging business in West Bengal which did well, though Lakhani says there are no consistent buyers in the state throughout the year.
“Consistency will improve in West Bengal if all industries work together. The mentality needs to change. Without the right mentality, progress will not happen,” said Lakhani, Director ASL Plastic, who believes that the potential of West Bengal is high, and should be capitalised on.
The PM Vishwakarma Yojna, launched by the Ministry of MSME, was meant to support craftsman, artisans and workers in this sector, as the erstwhile TMC government did not approve any central funds for West Bengal.
Industry leaders in this sector rued the decision of former CM Mamata Banerjee to oppose central schemes, which impacted several small-scale workers across the state.
“In our sector, if the Centre and state don’t join hands, the workers are victimised due to lack of central funds which could benefit them,” said Supriyo Ghosh, Chairman, National MSME Committee, Bengal Chamber of Commerce & Industries (BCCI).
He added that other states benefited with central funds, while Bengal was deprived.
There is potential, considering that West Bengal is the second largest state in the MSME sector in the country after Uttar Pradesh. There are around about 89 lakh registered enterprises providing jobs to 135 lakh people in the state.
The sector accounts for 40 per cent of the state’s exports. 90 per cent of business in the state is made up of over 90 per cent MSMEs, with 50 per cent of industrial production coming from the latter as well.
