The Union Budget 2013-14 document outlines several measures aimed at supporting small and medium enterprises (SMEs) including continued benefits for SMEs that grow, increased refinancing capacity for SIDBI, and setting up of a credit guarantee fund. It also details changes in customs duties and excise duties for various industries like textiles, leather, and automobiles. The director general of CII welcomed the growth and investment oriented budget that focuses on inclusive development and initiatives in critical sectors.

1. Union Budget 2013-14
Manufacturing Industry
Presented By
Pratik Raghani
Hardik Nathavani
Hardik Joshi
Dinesh Kothiya Marwadi Education
Foundation
Hiren Bavisa
Rajkot
Yogendrasinh Jadeja

2. UNION BUDGET 2013-14
• Union Finance Minister P Chidambaram on 28 February
2013 tabled the Union budget in the Lok Sabha of
Parliament for the financial year 2013-14.
• In the Union Budget 2013-14, the prices of various
commodities and products dwindled. While some of the
products witnessed a rise in the price because of an
increase in the customs duty, others saw a decline. Prices of
some other products, on the other hand remained unaltered
because of no change in the customs duty.

3. Micro, Small and Medium Enterprises
1. Benefits or preferences enjoyed by MSME to continue
upto three years after they grow out of this category.
2. Refinancing capacity of SIDBI raised to ` 10,000 crore.
3. Another sum of ` 100 crore provided to India
Microfinance Equity Fund.
4. ‰A corpus of ` 500 crore to SIDBI to set up a Credit
Guarantee Fund for factoring.‰

4. Micro, Small and Medium Enterprises
5. A sum of ` 2,200 crore during the 12th Plan period to
set up 15 additional Tool Rooms and Technology
Development Centres with World Bank assistance.
6. ‰ Ministry of Corporate Affairs to notify that funds
provided to technology incubators located within
academic Institutions and approved by the Ministry of
Science and Technology or Ministry of MSME will
qualify as CSR expenditure.

5. Textiles
1. Technology Upgradation Fund Scheme (TUFS) to
continue in 12th Plan with an investment target of `
1,51,000 crore.
2. ‰Allocation of ` 50 crore to Ministry of Textile to
incentivise setting up Apparel Parks within the SITPs to
house apparel manufacturing units.
‰

6. Textiles
3. A new scheme called the Integrated Processing
Development Scheme will be implemented in the 12th
Plan to address the environmental concerns of the
textile industry.
4. ‰ Working capital and term loans at a concessional
interest of 6 per cent to handloom sector.
5. ‰Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) extended to 800 clusters during the
12th Plan.

7. Custom
1. Duty on specified machinery for manufacture of leather
and leather goods including footwear reduced from 7.5
to 5 percent.
2. Duty on raw silk increased from 5 to 15 percent.
3. Duty on Set Top Boxes increased from 5 to10 percent.
4. Duty on imported luxury goods such as high end motor
vehicles, motor cycles, yachts and similar vessels
increased

8. Excise Duty
1. Relief to readymade garment industry. In case of
cotton, zero excise duty at fibre stage also. In case of
spun yarn made of man made fibre, duty of 12 percent
at the fibre stage.
2. ‰Handmade carpets and textile floor coverings of coir
and jute totally exempted from excise duty.
3. ‰To provide relief to ship building industry, ships and
vessels exempted from excise duty. No CVD on
imported ships and vessels.

9. Excise Duty
5. ‰Specific excise duty on cigarettes increased by about
18 percent. Similar increase on cigars, cheroots and
cigarillos.
6. Excise duty on SUVs increased from 27 to 30 percent.
Not applicable for SUVs registered as taxies.
7. ‰Excise duty on marble increased from Rs.30 per
square meter to Rs.60 per square meter.
8. Duty on mobile phones priced at more than `2000
raised to 6 percent.

10. Excise Duty
8. Proposals to levy 4 percent excise duty on silver
manufactured from smelting zinc or lead.
9. ‰Duty on mobile phones priced at more than `2000
raised to 6 percent.
10. ‰MRP based assessment in respect of branded
medicaments of Ayurveda, Unani, Siddha, Homeopathy
and bio-chemic systems of medicine to reduce valuation
disputes.‰

11. Taxation
1. Increase surcharge from 5 to 10 percent on domestic
companies whose taxable income exceed ` 10 crore.
2. Investment allowance at the rate of 15 percent to
manufacturing companies that invest more than ` 100
crore in plant and machinery during the period 1.4.2013
to 31.3.2015.

12. • Chandrajit Banerjee, Director General, Confederation
of Indian Industry (CII):
"CII welcomes the Budget 2013-14, which is growth and
investment oriented. While addressing fiscal
consolidation, it focuses on inclusive and sustained
human development. Commendable initiatives have
been taken in critical sectors such as
agriculture, investment in manufacturing and
infrastructure, MSME growth and capital market
development among others."

13. SOURCE
• http://indiabudget.nic.in/ub2013-14/bh/bh1.pdf
• http://www.ibtimes.co.in/articles/440993/20130301/uni
on-budget-2013-14-entrepreneurs-vs-lawmakers.htm