Budget 2018: The reduction in corporate tax for medium, small and micro enterprises (MSMEs) with a turnover of up to Rs 250 crore is likely to galvanise the government\u2019s Make in India initiative. This is so because apart from reducing the tax burden on them, the Budget 2018 has hiked customs duties on a host of items like mobile and electronics accessories, furniture items, and toys, etc, which are manufactured by such firms. This combination of a reduction in corporate tax, as well as protection from imported goods, would enable them to step-up manufacturing and increase their market share. They could also diversify into newer areas. \u201cThe attention to MSMEs through better access to finance or lowering of the corporate tax rate would help spur employment and growth in this vital segment of the economy,\u201d said Rashesh Shah, president, Ficci. Similar sentiments were echoed by Sunil Misra, director general, Indian Electrical and Electronics Manufacturers Association. Watch: Budget 2018: The story of the Budget briefcase | 5 things we bet you didn't know [jwplayer aMofSokp] \u201cThe reduction of corporate tax to 25% for SMEs (turnover of up to Rs 250 crore) is a great move towards enabling them to play a larger role in Make in India,\u201d said Amar Shankar, partner,\u00a0 advisory, EY India. Broadly, MSMEs are business enterprises, both in manufacturing and service sectors, with equipment investment of between Rs 10 lakh and Rs 10 crore.\u00a0 According to government estimates, there were 6.3 crore unincorporated non-agriculture MSMEs in the country, providing employment to 11.1 crore workers in FY16.\u00a0 The major initiatives implemented for growth of the MSME sector include the Prime Minister\u2019s Employment Generation Programme (PMEGP), the credit guarantee scheme, the credit linked\u00a0\u00a0capital subsidy scheme and the Micro Units Development and Refinance Agency (MUDRA). Read:\u00a0Budget 2018: Modi government to provide cheer for these 3 areas. Hint \u2013 job seekers have reason to be happy! However, a section of the industry held that not extending the tax reduction to larger corporates might have negative effects. Commenting on the decision, Abhishek Goenka, partner, PwC, said he was \u201cdisappointed with no across-the-board reduction, as this kind of patchwork is unhelpful.\u201d\u00a0 Vipul Jhaveri, partner, Deloitte India, pointed out that large corporates would now have to bear a slightly higher tax burden on account of the 1% increase in cess. \u201cRationalisation of long term capital gain tax may be inopportune in terms of timing, impact as it can their capacity to raise funds through IPOs and FPOs due to change in market sentiments,\u201d he added.