Budget 2022: MSME sector needs attention, says Ambrane CEO

Budget 2022 is round the corner and Industry experts are coming up with the list of expectations which can help them to grow. It can be known that Union Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2022-2023 on February 1, 2022. Due to Covid-19 pandemic several sectors and industries have been adversely impacted leading to halt the overall economic development of the country and even the world.

Micro Small and Medium Enterprises (MSMEs) are one such sector. Due to small size, small scale of business, lack of resources, low investment and several other reasons the sector has been one of the most vulnerable sectors to be hit by the pandemic. Though the situation is now improving, Industry does need support from the government for further development. Speaking on the same Ashok Rajpal, CEO and Founder, Ambrane has kept forward his expectations from the Budget 2022 for the MSME and Manufacturing Industry.

Budget expectations for MSME

“The upcoming Budget 2022 would be critical in restoring India's pandemic hit MSME and the manufacturing sector. It is projected that the core topic of Budget 2022 would continue to offer stimulus to the market for locally created goods to minimize import reliance and support the 'Make in India' effort,” says Rajpal.

“To promote Make in India, the government must incentivize R&D by providing subsidies and fiscal stimulus to the private sector. The decrease of corporate taxes and the implementation of various PLI programmes in the Union Budget 2021 have boosted domestic manufacturing; nevertheless, the industry now requires an additional push with further Make in India plans and incentives for electronics manufacturers.”

“PLI initiatives will be extended to attract greater private investment and engagement in the industry. The industrial business needs assistance in tax cuts and simpler legal procedures. Compliance should be simplified, and unnecessary legislation should be phased away. This will increase trust and confidence between the private sector and the government,” he added.

Rajpal also speaks about prioritising employment too. “Budget 2022 must focus on job creation via private and public sector engagement in areas with backward and forward economic integration. The budget should accelerate the implementation of the National Retail Trade Policy to streamline the licensing process, thereby making it seamless for growth,” he added.

“As export incentives have been reduced, trade policy must now encourage MSMEs to expand outside their boundaries. This would help India establish itself as a worldwide market leader. Reducing compliance and regulatory burden and providing financial incentives to large scale projects would also help bolster India's Industry 4.0 impetus,” emphasizes Rajpal.