Budget 2022-23 is revolutionary with futuristic outlook

All India Association of Industries and MVIRDC World Trade Center Mumbai commends Union Finance Minister for announcing a revolutionary budget with thrust on futuristic sectors such as circular economy, green energy, digital banking, and digital currency.

The government has rightly increased capital investment to Rs. 7.5 lakh crore for the next year from around Rs. 6 lakh crore in the current year, which will have a multiplier effect on economy.

Sharing his views on the Union Budget 2022-23, Dr. Vijay Kalantri, President, All India Association of Industries, Chairman, MVIRDC World Trade Center Mumbai remarked, “The government has rightly allocated the increase in tax revenues to the much needed infrastructure sector, with special focus on transportation and transferring more resources to state governments.”

Specifically, Dr. Kalantri welcomed increase in domestic procurement of defence equipments, launch of sovereign green bonds, introduction of e-passport and support to GIFT city.

Speaking about amendment in Customs tariff structure, Dr. Kalantri expressed hope that this will promote local manufacturing in sectors where India has competitive advantage and reduce import cost on raw materials & other manufacturing inputs.

The continuation of low customs duty on steel scrap will ensure cheap availability of raw material for MSMEs, especially in the engineering sector, Dr. Kalantri added.

“We welcome the increase in allocation for Emergency Credit Line Guarantee Scheme to provide fresh loan to MSMEs. At the same time, we wish to point out that only borrowers with sound repayment record could access fresh funds under this scheme. MSMEs who are struggling to repay loans because of poor economic condition are unable to benefit from this scheme. Therefore, the government could provide incentives such as subsidy on raw material cost, temporary waiver of dues such as electricity charges, rent, loan interest cost etc. to MSMEs,” he added.

Going ahead, India needs to expedite ongoing negotiation on comprehensive free trade agreement (FTAs) with countries such as USA, European Union and Canada to promote exchange of capital, technology and knowhow.

“We are confident that such agreements will provide preferential market access for Indian exporters in advanced markets on par with our competitors such as Vietnam and Bangladesh,” Dr. Kalantri opined.

The government may also upgrade testing and certification infrastructure and negotiate mutual recognition agreements with advanced countries to reduce chances of rejection of Indian goods on technical grounds.