Budget 2022: The expectations from the Budget 2022 for SMEs and the manufacturing industry are high.
Budget 2022 is around the corner and industry experts are coming up with the list of expectations that can help them grow. It is known that the Union’s finance minister Nirmala Sitharaman will present the 2022-2023 EU budget on February 1, 2022. As a result of the Covid-19 pandemic, several sectors and industries have been adversely affected, affecting the overall economic development of the country and even the world.
Micro Small and Medium Enterprises (MSMEs) are one such sector. Due to its small size, small scale, lack of resources, low investment and several other reasons, the sector is one of the most vulnerable sectors affected by the pandemic. Although the situation is now improving, the industry needs government support for further development. Speaking of the same Ashok Rajpal, CEO and founder, Ambrane has put forward his 2022 budget expectations for the MSME and the manufacturing industry.
Budget expectations for MSME
“The upcoming 2022 budget would be critical in recovering from the pandemic that has hit India, SMEs and the manufacturing sector. The core theme of Budget 2022 is expected to continue to provide a boost to the market for locally produced goods to minimize import dependency and support the ‘Make in India’ effort,” says Rajpal.
“To promote Make in India, the government should encourage R&D by providing subsidies and tax incentives to the private sector. The corporate tax cut and the implementation of several PLI programs in the 2021 Union budget have boosted domestic production; nevertheless, the industry now needs an extra boost with further Make in India plans and incentives for electronics manufacturers.”
“PLI initiatives will be expanded to attract more private investment and involvement in the industry. The industrial company needs help with tax cuts and simpler legal procedures. Compliance should be simplified and unnecessary legislation should be phased out. This will increase trust between the private sector and the government,” he added.
Rajpal also talks about prioritizing employment. “Budget 2022 should focus on job creation through private and public sector involvement in areas of backward and forward economic integration. The budget should accelerate the implementation of national retail policies to streamline the licensing process, allowing it to grow seamlessly,” he added.
“As export incentives have diminished, trade policy should now encourage MSMEs to expand beyond their borders. This would help India establish itself as a global market leader. Reducing compliance and regulatory burdens and providing financial incentives to large-scale projects would also help boost India’s industrial 4.0 impulse,” emphasizes Rajpal.