Economy

Budget Proposals Will Boost Exports and Manufacturing: Exporters

According to the exporters and industry, the steps announced by the Finance Minister in the Union Budget 2022, such as the extension of the Emergency Credit Line Guarantee Scheme (ECLGS), setting up 100 cargo terminals, allocation of additional credit under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) and a new law for special economic zones, would boost economic growth and exports from the country.

The BRICS Agri-Business Council chairman, Vikramjit Sahney, stated that the special fund proposed through the NABARD to finance agricultural startups and rural enterprises for farm produce value chain would promote industrial growth in India. 

The fertiliser subsidy allocation is 32% incremental than last year’s allocation. However, Vikramjit Sahney stated that it is less than the revised estimate of 2022 and hoped that the government would cover the same in supplementary grants depending on the international prices of fertiliser inputs.

The Federation of Indian Export Organisations (FIEO) president, Dr A Sakthivel, stated that the extension of the ECLGS for 2022-23 with an additional outlay of Rs.50,000 crore and allocation of additional credit provision of Rs.2 lakh crore under the CGTMSE would provide immense support to the industry.

Dr A Sakthivel stated that the ECLGS benefitted the MSMEs during the COVID-19 pandemic peak time. Its extension would further infuse life in the businesses when recovery is on the card. The CGTMSE would provide collateral-free lending and infusion of liquidity. The replacement of the SEZ act with new legislation would make the special economic zones an engine of employment creation and economic growth besides exports.

The Trade Promotion Council of India (TPCI) stated that the focus of Union Budget 2022-23 on digitalisation, reforming the rural economy and modernisation is forward-looking and progressive. The economy would continue its journey on a sustained path with the increasing thrust on the PM Gati Shakti and Production Linked Incentive (PLI) scheme.

The founder chairman of Technocraft Industries India and leading exporter of Mumbai, Sharad Kumar Saraf, stated that the Budget is growth-oriented as there is no new imposition of surcharges or taxes. The Budget lays stress on infrastructure development and employment generation. It supports MSMEs by providing additional loan facilities and will boost the economy by spurring growth.

The global trade information provider Connect2India CEO and founder Pawan Gupta stated that the proposal to simplify the tariff structure and customs rate for sectors like textiles, chemicals and metals would provide clarity and insights on the landed cost of these products. It would allow companies to make informed decisions regarding global trade for the affected products.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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