Budget reaction: MSME sector

1 Feb 2022 , 10:52 PM

With respect to the MSME sector, we congratulate the Union Budget 2022 for the vision. MSMEs will be supported through an extension of the Emergency Credit Line Guarantee Scheme (ECLGS) through March 2023, which will increase the guarantee cover by Rs 50,000 crore to Rs 5 lakh crore. The ‘Effective Capital Expenditure’ which is estimated at INR 10.68 lakh crore will be about 4.1 percent of GDP implies that Government is focused on strengthening domestic industry which will aid economic growth and job creation. This year’s Budget also emphasized on the startup ecosystem.

Furthermore, the focus on digitization will strengthen online marketplaces to reach a wider audience, thereby creating a path for strong growth. The tone of the Budget was clearly pointing toward the priority areas defined as engines of growth for becoming a 5 trillion economy. It was a genuine effort to meet the GDP target as envisaged in the Economic Survey; we wish to see the year as the ‘year of growth’.

The author of this article is Mr. Dinesh Agarwal, Founder & CEO, IndiaMART InterMESH Limited

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com