Budget 2013: 4 Factors Which Will Affect Small Businesses

3. Including the MSMEs on the SME Exchange

All the MSMEs will be included in the Small and Medium Enterprise (SME) Exchange. The MSMEs would not have to make any offers in the public. Like the large scale enterprises, they will also get an extended number of investors. However, the inclusion of the MSMEs in the SME exchange will be kept limited to certain categories of investors.

4. New Investment

From the new investment grant for new high value investments, the Finance Ministry has estimated “enormous spill-over benefits to small and medium enterprises”. The Budget recommends that any company investing Rs 100 crore or more in plant and machinery from April 1, 2013 to March 31, 2015 will be allowed to subtract an investment allowance of 15 percent of the investment. This will be subjected to the existing rates of depreciation.

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