Nirmala Sitharaman, India’s Finance Minister is set to present the Union budget for the financial year 2022-23 on February 1. The micro, small and medium enterprise (MSME) sector is optimistic about this.
Simplifying taxation, investment and providing new incentives for Indian startups and MSMEs are among the expectations of the Union Budget 2022.
“MSMEs are looking for measures to improve credit and accessibility of funds that can mobilize growth. We expect the Union budget to focus on simplifying taxation, investment and providing new incentives for Indian startups and MSMEs, which can help generate more revenue and jobs,” Vibhor Sahare, CEO and co-founder, ANS Commerce
Additionally, measures such as streamlining approvals, compliance for ease of doing business, faster adoption of technology, and automation by traditional retailers would be extremely helpful for the e-commerce industry. More entrepreneurship and incubation programs should also be a priority, he added.
Lokendra Ranawat, CEO of WoodenStreet, said, “We are also optimistic about a recovery in overall credit demand across India. There should be a push towards affordable and rental housing and the strengthening of existing financing systems to provide liquidity to stalled real estate projects. “
MSMEs in the international market play a central role in the Indian economy, so the introduction of subsidies in this budget can also give a big boost to this sector.
“Introducing some standards in the Need to Trade policy to facilitate business for MSMEs in the domestic and international market is what we are looking forward to in this budget,” said Chandan Garg, Group President and CEO. Innovana.
In the Union budget 2021-22, i.e. last year, a number of measures were taken to support the MSME sector and the government provided ₹15,700 crores to this sector. The budget had proposed some changes in favor of MSMEs, including increased duties on steel screws, plastic construction articles and shrimp feed. Streamlining exemption on import of duty-free items as an incentive for exporters of garments, leather and handicrafts were some other announcements made by FM Nirmala Sitharaman during the presentation of the 2021 budget.
On December 30, the finance minister held a pre-budget meeting with all state finance ministers. This was part of a series of consultations held ahead of the 2022-23 Union budget.
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