Technology being given top priority
Dun & Bradstreet, a global leader in commercial data and insights on businesses, has announced findings from its recent Dun & Bradstreet SAP 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. demonetisation and Goods and Services Tax (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:
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 SME Survey was conducted in the month of January 2018 across key metros. fii-news.com
