Impact of Fiscal Incentives on MSMEs’ Performance in Gujarat

Fiscal incentives act as an instrument to enhance growth of industry and in turn, that of economy is a debatable issue all over the world. Many countries and many governments have burnt their hands in imposing or reducing tax rates and other benefits. The impact of different fiscal incentives on various corporate decisions is not certain and varies from country to country and time to time. Sometimes it has been found that such fiscal incentives work best when it is coupled with other factors like political stability, infrastructure facilities etc. In addition, many researchers have viewed that such fiscal incentives results in to nothing but just raises the burden of the government. The present study attempts to find out how industrial sector particularly MSMEs view these incentives on their overall impact.