• Sat. Jun 22nd, 2024

Industry FeedBack on Union Budget 2022-23

The CEO of the top Industry of India welcomed the Union Budget which was tabled by Union Finance Minister Nirmala Sitharaman in the Parliament on Tuesday, 1st February 2022.

Quote from Suvankar Sen, CEO, Senco Gold & Diamonds

FM’s announcement of the reduction in customs duty on cut and polished diamonds and gemstones and plan to develop a simplified regulatory framework to facilitate the export of jewelry through e-commerce are positive steps that will enable the sector to grow in the country and boost exports.  We look forward to its implementation later this year. The reduction in import duty on diamonds will help generate increased demand for diamond jewelry in the market.

Overall, the focus on investment in infrastructure is positive for the economy, also the review of the Special Economic zones Act will help boost the export infrastructure.

Quote from Mr. Rakesh Sharma, MD & CEO, IDBI Bank :

This is a growth-oriented, forward-looking budget with a focus on capital expenditure in the infrastructure sector, particularly in roads, railways, and their associated logistics. Coming on the back of nascent economic growth, estimated to be around 9.2% in the current year, and in the midst of the third wave of the pandemic, the Union Budget provides for targeted policy prescriptions for enabling inclusive development, productivity enhancement, and financing of investment mainly through PPP model. Keeping in view the prevailing financial strain, especially on small businesses, during the pandemic, the extension of ECLGS till March 2023, and expansion in the guarantee cover of CGTMSE, will indeed be a boon for MSMEs, which have been primary beneficiaries under the scheme. I am sure that the Budget announcements will go a long way in achieving the goal of “Atmanirbhar Bharat.”

Quote from Mr. George Alexander Muthoot, MD, Muthoot Finance

‘The 2022-23 budget has laid clear emphasis on prioritising economic growth with focus on capital spending to generate growth and employment. The announcement relating to MSMEs and the thrust on digital banking will further go a long way in supporting the economy. The MSME sector has been one of the most impacted during the pandemic. Focusing on further supporting the MSME sector and reduce stress in this segment, the Government has widened the ECLGS scheme & revamped CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises).The ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs 5 lakh crore. The CGTMSE scheme will be revamped with required infusion of funds. This will facilitate additional credit of Rs 2 lakh crore for MSMEs and expand employment opportunities. We believe that the NBFC sector will also benefit from the allocation of Rs. 48,000 cr (under the PM Awas Yojana) for affordable housing unveiled by the honourable Finance Minister during the budget announcement. This move will accelerate the credit demand in the economy and positively affect the performance of NBFCs catering to the sector.’

Quote from Mr. Ajay Srinivasan, Chief Executive – Aditya Birla Capital

The Finance Minister has presented a pro-growth and forward-looking budget. It has complemented macro growth with social welfare, while being accommodative on fiscal consolidation. The budget has differentiated itself with its focus on the digital economy, startups, and tech-enabled development as well as energy transition and climate action. The capex-heavy budget has reiterated the focus on public investment to modernize infrastructure over the medium term. The overall focus is clearly to nurture growth and support economic recovery.

Quote from Srikanth Kandikonda, CFO, Manipal Cigna Health Insurance

“As India is coming out of the pandemic, the Government has laid momentous thrust on economic recovery and welfare of people, by focusing on crucial sectors such as infrastructure, agriculture, health, and education. The Union Budget has also provided incentives to promote digital economy, energy transition, and climate action which will lead India to the next decade.

The announcement to roll out – National Digital Health Ecosystem that consist of digital registries of health providers and facilities, will provide further boost to universal access of better healthcare facilities. The pandemic has accentuated mental health problems in people of all ages. Thus, the launch of – National Tele Mental Health Programme will give access to quality mental health counseling and care services. In addition to these positive steps, if the government would have considered the reduction in the GST rate on health insurance premium and increase the limit of tax deduction for health insurance under section 80D,  these initiatives would have further helped millions of people access quality healthcare at an affordable cost. However, nonetheless, we anticipate that the steps taken by the government will certainly improve overall health and well-being of people at large.”

Quote from Ajay Pareek, Chief Business Officer, Fullerton India

“The FM has delivered a Union Budget today that was clearly focussed on economic recovery through increased capital expenditure for the country’s growth. The push towards self-reliance reveals the government’s steadfast intention to achieve the long-term goal of ‘Atmanirbhar Bharat’. The extension of the ECLGS scheme till March 2023, as well as the expansion of the guarantee cover by ₹50,000 crore to ₹5 lakh crore is a welcome sign for the NBFC sector and over 130 lakh MSMEs. The thrust to digitise India and the focus on the fintech segment will help enhance financial inclusion. The affordable housing segment also received a boost today, with the allocation of Rs 48,000 crore under the PMAY urban and rural schemes.” – Ajay Pareek, Chief Business Officer, Fullerton India

Quote by Mr. Kuldip Maity, MD & CEO, Village Financial Services (VFS)

I would like to compliment our Hon’ble Finance Minister for presenting a growth-oriented budget, which aims at inclusive development. Incremental focus on Agri and infrastructure sectors and rural areas will give a boost to the economy and lay the foundation for the next phase of growth. The Agri sector is the backbone of the Indian country’s economy and initiatives like Kisan drone for crop assessment, digitization of land records, spraying of insecticides and nutrients will give a boost to farming.

Furthermore, the extension of ECLGS scheme is a much-needed move for the pandemic-affected MSME sector. The credit and fiscal support of 5 lakh crore will bring relief to the sector and will also encourage new business enterprises to come up besides employment generation. Support for the digital payments ecosystem is another welcome move. This will encourage further adoption of digital payments.

Quote by Umesh Revankar, VC & MD at Shriram Transport Finance

“The union budget 2022 is a bold and growth-oriented budget which will result into a multiplier effect on the economy and benefit the Aam Aadmi, despite no direct benefit transfers. We believe the FM has presented an investment led budget and this will propel sectors like cement, steel and construction which will lead to increased movement of goods, boost bulk transportation movement and help in the revival of the transport industry.  The government widening the ECLGS scheme & revamping CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises) are steps taken to accelerate growth and reduce stress particularly in the MSME segment. Housing project allocation of Rs 48000 crore is likely to boost growth momentum for the building materials sectors and real estate activities in general. We believe the budget is a very forward looking one with emphasis on digital economy and reducing carbon footprint, which will benefit digital lending and lead to environment friendly policies going ahead for the vehicle sector. Ease of doing business has taken centre stage as the Government has committed to a ​long-term growth of over 8% for the next 3 years. India’s economy is now well placed and we are optimistic on credit uptake in the economy.”

Quote from Mr. Vijay Chandok, MD & CEO – ICICI Securities

The Union Budget 2022-23 is a Budget with a vision to transform India in the medium term. The budget has adopted new economic growth template for “Amrit Kaal” (run-up to India@100) by promoting capital expenditure-led economic growth. An outlay of Capital expenditure of Rs 7.5 lakh crore, up ~35% YoY (and at 2.9% of GDP) along with expanding the scope of private capex through PLI for new age segments is expected to deliver inclusive growth, job creation, and welfare for all.   

The Budget also seem to be presented in the backdrop of likely pandemic aftereffect, which is reflective in the relatively conservative estimation of growth (merely ~11% nominal GDP in FY23) and receipts. Thus, there is a likelihood of a lower than projected fiscal deficit. With growth-oriented focus intact in the Budget, we expect economic and capital market buoyancy to remain. 

Quote from Mr. V. Balasubramaniam, MD & CEO, India INX

“India’s focus has been on sustainable growth and development; the Budget announcement to enable green bonds to be issued in public sector projects will give further impetus to green finance and pave the way towards a greener and sustainable long term economic growth. Additionally, the announcement of the International arbitration centre to be set up in IFSC, is a key addition as it provides a proper structure to resolve conflicts. The announcement of the mediation centre and fintech education centre at GIFT IFSC is a great step and will go a long way in establishing the IFSC as a ‘Global Financial Hub’. Additional tax exemptions on ODIs, shipping royalties and exempting NRIs income from IFSC continues to keep IFSC competitive from tax perspective.”

Mr. Chandrashekar, CMD, SASMOS HET Technologies LTD said ,

The Union Budget 2022 has opened up an array of opportunity for home-grown defence manufacturing companies with the Government’s focus on curbing defence imports in India. The FM’s provision to earmark 68 per cent of capital for defence sector for domestic industry is a commendable move. The decision to invite industry, startups and academia in Defence R&D with 25% of R&D budget allocation will encourage like-minded people to come together and be part of the largest defence vision of the country, thereby, taking the Indian defence manufacturing to the next level. Overall, the budget addresses the need for sustained growth of defence manufacturers to support Make in India.

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