Union Budget 2018

 

SME Prebudget

 

91% need sops, favorable policies for tech adoption: Dun & Bradstreet – SAP India SME Survey

 

Mumbai, January 31, 2018: Dun & Bradstreet, a global leader in commercial data and insights on businesses; in association with SAP, the world’s largest business software company, today announced findings from its recent Dun & Bradstreet SAP India SME Survey that highlights key expectations of the segment from the upcoming Union Budget.

The survey result highlighted a whopping 91% of respondents endorsing the need of technology adoption with the support of encouraging government policies and schemes. The study also found that SMEs view technology as an enabler for their business growth. Over 63.59% stated that technology adoption is not a survival tactic but in anticipation of thriving growth, and hence is on the top of their priority list.

With respect to specific expectation, 29% of respondents highlighted access to credit for SMEs as the most important change they expect from the budget. In addition, around 21% expressed the need for the government to extend incentives for SME startups, while 20% want no threshold for investment allowance on capital expenditure.

With the aim to revive investments, alleviate rural distress, fueling jobs and provide broad level growth momentum to the economy, Union Budget is expected to encompass a series of measures. The Small and Medium Enterprises (SMEs) which form a critical segment of Indian economy was impacted by two structural changes i.e. demonetization and GST which has disrupted their business and thereby is likely to have maximum attention during the upcoming budget. The survey accentuates voices of SMEs pointing out acute pain-points and key expectation from the last Union Budget of the current tenure of government that will shape the growth trajectory of the segment in the coming years,” said Dr. Arun Singh, Lead Economist, Dun & Bradstreet India.

The report also provides detailed insights from key sectors such as chemical and pharma, professional services, retail and e-commerce, transport and logistics, automotive sector, industrial machine component, metal and mining, and other industries. 

Key highlights from each sector:

Sector

Expectations

Chemical and Pharma

50% want government to change weighted deduction provisions to 200% for R&D in this budget

Professional Services

48% want benefit of presumptive taxation to be extended to LLPs (Limited Liability Partnerships)

Retail and E-Commerce

54% want a Single National Retail Policy

52% prefer a Unified National Market for retail and FMCG sector combined

Transport and Logistics

87.5% expect more projects to be announced such as Bharatmala Road Building Program

88% want logistic parks to be set up

Automotive Sector

56% expect reduction in GST rates on ancillaries as suggested by Automotive Component Manufacturers Association of India (ACMA)

88% expect encouraging steps towards Bharat Stage – VI adoption

Industrial Machine Component

One out of three respondents want nil taxation for import of capital goods for technological up-gradation and environment protection

Metal and Mining

43% want government to expand profit-linked incentives to include capital-intensive industries

88% feel government is likely to maintain a protectionist mindset, promoting indigenous manufacturing

 

Dun and Bradstreet - SAP India SME Survey was conducted in the month of January 2018 across key metros. 

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