Confederation of Indian Industry, CII on Friday called for a comprehensive package for Micro, Small and Medium Enterprises MSMEs to unshackle their growth potential. As part of its pre-Budget recommendations to the Government, the apex industry body outlined a 16-point agenda for the MSME sector.

According to CII Director General Chandrajit Banerjee, MSME segment, can emerge as a growth driver for the economy if the key issues are addressed in a proactive manner. This sector employs more than 59 million people. It contributes about 40 per cent to manufacturing output and to the exports.

CII has strongly recommended that the new Direct Tax Code, which is slated to offer investment-linked tax incentives, should instead link tax rates to employment. Mr. Banerjee said this approach, espoused by many countries, would create more jobs. It will also help MSME which by definition have limited capital investments and are employment-intensive.