Union Budget 2014-15: Industry, MSME & Textiles

Union Finance Minister, Arun Jaitley presented Union Finance Minister, Arun Jaitley

Jul 11, 2014 12:49 IST
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Union Finance Minister, Arun Jaitley on 10 July 2014 presented Union Budget 2014-15. The Union Budget 2014-15 provided new initiatives like National Industrial Corridor Authority and preparing master planning of industrial corridors and economic corridors to increase the industrial growth. It also proposed for Export promotion Mission to bring different stake holders under one umbrella.

In MSME sector, new schemes like skill India to create employability and entrepreneur skills to youth whereas Fund of Funds is corpus to  provide equity through venture capital funds, quasi equity, soft loans and other risk capital etc.

In Textile sector, budget provided finance to set up Trade Facilitation Centre and a Crafts Museum, and to develop the Textile mega-clusters. It also provided finance to set up Hastkala Academy and for the development of Pashmina Promotion Programme (P-3) and Jammu and Kashmir crafts.

• Central Government Departments and Ministries to integrate their services with the e-Biz -a single window IT platform- for services on priority by 31 December 2014.
• 100 crore rupees provided for setting up a National Industrial Corridor Authority.
Amritsar Kolkata Industrial master planning to be completed expeditiously.
• Master planning of 3 new smart cities in the Chennai-Bengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be completed.
• Perspective plan for the Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai corridor to be completed with the provision for 20 new industrial clusters.
• Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated.
• Proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella.
• Apprenticeship Act to be suitably amended to make it more responsive to industry and youth.

Micro Small and Medium Enterprises (MSME) Sector
Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills.
• Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months.
Fund of Funds with a corpus of 10000 crore rupees for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.
• Corpus of 200 crore rupees to be set up to establish Technology Centre Network.
• Definition of MSME to be reviewed to provide for a higher capital ceiling.
• Programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery to be put in place.
• Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.
• A nationwide District level Incubation and Accelerator Programme to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship.

• 50 crore rupees is provided to set up a Trade Facilitation Centre and a Crafts Museum to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi.
• Sum of 500 crore rupees for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore.
• 20 crore rupees to set up a Hastkala Academy for the preservation, revival, and documentation of the handloom or handicraft sector in PPP mode in Delhi.
• 50 crore rupees is provided to start a Pashmina Promotion Programme (P-3) and development of other crafts of Jammu & Kashmir.

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