Historic Budget focusing on challenges and opportunities for Amrit Kaal (from 75th Year of Independence to 100 years): FIEO

Ludhiana, February 1, 2022: Hailing the Union Budget 2022-23, Dr A Sakthivel, President, FIEO complimented the Finance Minister for a proactive, forward looking, all encompassing visionary budget. The budget has struck a fine balance to address the gap in social & physical infrastructure besides increasing digitization & new trends including digital Rupee and sovereign green bonds.

The  increase in the capital expenditure by 35.4% to Rs. 7.50 Lakh Cr in 2022-23 from Rs. 5.54 Lakh Cr in 2021-22 will enable MSMEs to benefit from additional capital allocation and boost job creation in the sector, opined FIEO Chief .
 
FIEO welcomed the extension of ECLGS Scheme for 2022-23 with an additional outlay of Rs 50,000 Cr and allocation of an additional credit provision of Rs. 2 Lakh Crore under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) to meet the requirement of MSMEs. The ECLGS Scheme has benefited the MSME during the peak covid time and its extension will further infuse life in the businesses, when recovery is on the card, said Dr Sakthivel. The CGTMSE will help to provide collateral free lending and infusion of liquidity. 
 
The seven engines of growth under the PM Gati Shakti project will help to reduce the logistics cost and time of Indian exports significantly thereby imparting added competitiveness to exports. The setting up of 100 Cargo Terminals will facilitate Exim trade a lot as logistics challenges today are the biggest stumbling blocks. The focus on skilling through the “Digital Ecosystem for Skilling and Livelihood – the DESH Stack E-portal for Skilling, Re-skilling and Upskilling through online training will be very handy for exports as it will help in qualitative manufacturing and consistency in production. 
 
Dr Sakthivel said that the replacement of SEZ Act with a new legislation to meet the requirement of a dynamic sector of international trade and transparent and risk based customs administration of SEZ will make SEZ an engine of economic growth and employment creation besides exports. He said that many other operational challenges faced by SEZ units including duty on the finished products while selling in the domestic market should be taken care of in the legislative changes. 
 
The extension of the time limit for concessional income tax facility of 15% to new domestic manufacturing units commencing production till 31st March, 2024 will attract investment particularly in various sectors of exports since the domestic investment is set to increase and global investment is likely to pour into the country including in joint venture opportunities.
 
The President, FIEO said that the sectoral relief given through the reduction in duty on cut & polished diamonds, gemstones, certain chemicals and extension of zero duty on steel scrap will benefit the gems & jewellery, chemicals and engineering exporters. Similarly, the restoration of the facility of duty free import of trimming and embellishments for exports will help the apparel, textiles, leather garments & leather footwear, handicrafts, sports goods and other sectors. 
 
The additional budget for the Interest Equalization Scheme for the year 2021-22 and provision of Rs. 2621.50 Crore for 2022-23 have provided assurance on the continuance of the Interest Equalization Scheme and we are expecting a suitable announcement in this regard, said FIEO Chief.
 
President, FIEO appreciated the introduction of a new clause under the Customs Act making publishing of any information relating to the value or quantity or details of importer or exporter with imprisonment upto six months or with fine upto Rs. 50,000 or both, which will address the issue of revealing the sensitive information of exporters thereby generating unethical competition.