We foremost wish to welcome the development oriented Union Budget 2018 presented by the Union Finance Minister. Plexconcil will support the Government's endeavour to increase exports and plastics has contributed significantly to the exports growth of 15% in FY18 as envisaged by the Finance Minister.
Plexconcil welcomes the key announcements with respect to the MSME sector because the majority of the plastics industry consists of MSMEs/ SMEs. The Plastics industry predominantly comprises the MSME businesses and the Rs. 3794 crores allocated in capital support and interest subsidy is sure to help the sector grow. Needless to say, this would encourage more of our trade members to explore expansion of their businesses, thereby not only increasing output capacities, technological advancement, but also facilitate increased employment creation and skill enhancement. This move will also incentivise new entrants into the segment and help grow the industry sector as a whole. The stimulus to growth of the manufacturing sector will also further boost exports. We feel that the incentives given to the Footwear, Leather and Textiles sector should also be extended to the plastics industry.
The cut back on Corporate tax to 25% for businesses with turnover of upto 250 crores is also a welcome reprieve for many of our manufacturers who will now be able to utilize funds thus saved to reinvest in their own businesses and improve their manufacturing capacities to meet the increasing demands of the international markets. This will also stimulate job creation.
We welcome the schemes and increased outlay for MSMEs as well as the initiative to create a database and identity for MSMEs. The financing schemes announced for MSME sector should be applicable to the plastics MSMEs too. We welcome the Government’s move to incentivise domestic value addition and Make in India in the plastics sector.
We welcome the Government's move to contribute 12% EPF in wages of new employment in all sectors including plastics.
In sync with the Government’s emphasis on manufacturing and creating infrastructure, more plastics manufacturing parks with shared support services and resources can be created to stimulate job creation.