Lucknow, Feb 1 (PTI) Industries and traders' bodies on Saturday welcomed the Union Budget presented on Saturday by Finance Minister Nirmala Sitharaman.

President of The Indian Industries Association Neeraj Singhal, while welcoming the provisions of the Budget, said, "As compared to the previous budgets, more attention has been given to the MSME sector in this Budget." The Union Budget highlighted that agriculture, MSME, investment, and exports are engines in the journey to Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity.

The finance minister described MSMEs as the second power engine for development as they constitute 45 per cent of our exports. To help MSMEs achieve higher efficiencies of scale, technological upgrade and better access to capital, the investment and turnover limits for classification of all MSMEs enhanced to 2.5 and 2 times, respectively.

Further, steps to enhance credit availability with guarantee cover have also been announced.

Tax lawyer Ashish Tripathi welcomed the income tax relief announced by the Union Finance Minister.

He said, "While looking for relief for themselves in every Budget, making income up to Rs 12 lakh tax-free for the middle class is a strong step taken by the government towards becoming the third largest economy in the world. The announcement of new tax law... is also a positive step and the need of the hour." Sandeep Bansal, the president of the Akhil Bhartiya Udyog Vyapar Mandal, said this Budget will give a boost to middle class entrepreneurs of the country, and will also give an impetus to the country's economy. PTI NAV TRB

MSME classification change expands eligibility and boosts credit availability, paired with broader income tax relief. The Budget increases investment and turnover thresholds for MSME classification, pairs that reclassification with enhanced credit availability backed by guarantee cover to support technological upgradation and scale efficiencies, and introduces income tax relief for a broader segment of middle income taxpayers alongside a proposed new tax law.