Industry reactions to Union Budget 2022-23 (Part-10)

Yogesh Mudras, Managing Director, Informa Markets in India
“This year, the Union Budget has been one of recovery and stabilization from the impact of COVID-19. The Budget has taken some initiatives for MSMEs and India Inc for start-ups. The extension of ECLGS scheme is a welcome move for MSMEs. The tax concession period has been extended by one more year, which in my opinion is a very positive move. A tax rate of 15% has been decided for the newly incorporated manufacturing unit which will further boost manufacturing activities. Healthcare and infrastructure were the main highlights of Budget 2022 and immense investment has been allocated for the expansion of roadways and logistics networks. Introduction of ‘Digital Rupee’ using blockchain technology sends a strong message that India is at the forefront of technology implementation. A digital currency issuance by the RBI will result in a structured approach with controlled regulation and bring in transparency to transactions enabling accounting of all money. The push on digitization will make way for more inclusion in the ecosystem. The focus on 'Ease of doing business' is a great step, as it will further promote entrepreneurship in the economy. India is to grow at 9.27%, the highest among all large economies. With a focus on contributing to the environment, chemical-free natural farming focusing on soil, biodiversity and human well-being is a welcome move. The budget is growth-oriented with an impetus on capital expenditure to fuel economic growth and employment generation. SEZ Act to be replaced with the new legislation is a much-needed announcement. Introduction of the battery swapping policy and recognizing battery and energy as a service will help to develop charging infrastructure and increase the use of EVs in public transportation. This would motivate businesses to incorporate EVs into their fleet and create new avenues for companies to venture into the business of battery swapping. The formation of a strong charging infrastructure alongside the highways across the country would promote the use of EVs for interstate travel. An additional allocation of Rs 19,500 crore to boost manufacturing of solar modules under the government’s flagship PLI scheme has the potential to create 60 lakh new jobs, while producing 30 lakh crore jobs during next five years. International travel has been severely impacted during the pandemic. We are pleased with the introduction of e-passports as it will provide a boost to the travel industry and add convenience. Extension of ECLGS scheme with an additional allocation for the hospitality sector is a positive move as it would help small and mid-size hotels overcome liquidity issues and pave way for growth.”
 

Lalit Beriwala, Director, Shyam Steel Industries Ltd and Sr. Vice President , Merchants Chamber of Commerce & Industry
“I welcome the Union Budget, 2022, which is balanced as well as target oriented. It envisages 9.2% growth covering every sector of country’s economy. The focus on promotion of digital economy, health, infrastructure, aviation, energy transition, climate action with an inclusive approach will spur country’s economic growth and improve the quality of life of the people. Besides stabilizing economy, it will accelerate steady growth. I am confident that the following budget provisions will go a long way for transition of India at 100.
 
•    Capital expenditure raised by 35.40 per cent from ₹ 5.54 lakh crore to ₹ 7.50 lakh crore is a landmark initiative for economic growth. Capping of Surcharge on long-term capital gains at 15% is also a welcome measure.
•    Interest free loan of Rs. 1 lakh crore for the States will help the States for robust economic growth benefiting the people.
•    The Union Budget that proposes to expand National Highways by 25,000 KM in 2022-23 is a welcome decision for Infrastructure development.
•    The PM Gatishakti National Master Plan costing Rs. 20,000 crore and encompassing 7 engines of development will also be a game changer to the transformation of Indian economy.
•    Emphasis on infrastructure development including five River Link Projects will ensure hassle-free movement of raw materials of the industries as well as distribution of finished goods across the country at a reduced cost.
•    Credit guarantee for two lakh micro and small industries aiming to create more employment opportunities is also a welcome measure.
•    68% capital procurement budget earmarked for domestic procurement will be a significant milestone to the achievement of the goals of Atmanirbhar Bharat Abhiyan and Make in India.
•    Earmarking of Rs.60,000 crore to cover 3.8 crore households in 2022-23 under Har Ghar , Nal se Jal programme and  Rs. 48,000 crore for completion of 80 lakh houses in 2022-23 under PM Awas Yojana will also help the construction industries ( Steel, Cement, Chemicals etc.) to grow.
•    The proposal to extend “Steel Scrap Duty” for another year will benefit Western India who mostly uses scraps; revoking of anti-dumping on stainless steel will also benefit steel industry.
•    PM Development (PM-DevINE) initiative for North- East for infrastructural and social development projects with an initial allocation of Rs. 1500 crore will boost economic growth, trade and business and help mainstream NE areas.
•    Setting up of four Multimodal logistic Parks in different places, 100 Gati Shakti Cargo Terminals in three years will help to accelerate economic growth and boost industrial development.”

Shikhar Aggarwal, Joint MD, BLS International 
‘’We would like to applaud the government for this progressive announcement today about introduction of e-Passports using embedded chip to be rolled out in 2022-23. A well thought initiative like this will help to boost the overall travel industry and also ease out the process for overseas travel and augment global mobility. We at BLS have been helping different governments globally to roll out e-Passports and would be extremely glad to share our expertise with the Government of India. With the launch of this initiative, Digital India vision will be strengthened and we will be proud to be a part of this project’’.

 
Ram Iyer, Founder & CEO, Vayana Network, India's largest trade finance platform
“The finance minister reiterated Govt.’s commitment to the policy of stable and predictable tax regime. The announcements continued to build on the themes of the previous year, such as infrastructure, education, health, housing and ease of doing business. The substantial increase in capex is expected to have a multiplier effect and a tightrope to manage between growth and inflation.
The extension to Emergency Credit Line Guarantee Scheme (ECLGS) was expected and needed to ensure the growth and survival of MSMEs. Linking of various MSME portals, and initiatives announced towards skill development, credit and market access reflect Govt.’s commitment towards the growth of the critical sector.  
The other interesting announcement of bringing post office accounts onto a Core Banking System will make interoperability possible, resulting in the next phase of growth for UPI and other digital infrastructure. This will also bolster the public welfare and delivery contributing towards financial inclusion of the country.
The budget also had something for the sunrise sectors like EVs and Solar, along with capping on the LTCG which will help the start-up employees. Introduction of Digital Rupee will be a very interesting area to look out for.
It will be important to look at the finer details as they emerge and the execution, on which the success of all the policy announcements will depend.”