Union Budget 2022-23 Receives Positive Feedback from MSME Sector Leaders

The Union Budget 2022-23 has been positively received by the MSME sector. Chandan Garg, Chairman and MD of Innovana Group, expressed approval of the ECLGS scheme's extension. He noted that the Rs 5 lakh crore credit and fiscal support will significantly benefit MSMEs, fostering new businesses and potentially creating over 10 lakh jobs swiftly.

However, Garg also mentioned that more emphasis on simplifying trade and taxation policies for MSMEs was anticipated. This would have provided greater business freedom. Meanwhile, Vivek Bali, CEO of Enrich, highlighted the need for the credit line guarantee scheme to cover sectors like beauty businesses, including salons and startups, which were affected by the pandemic.

Siddharth Maurya, a Resource Specialist in Fund Management, acknowledged the budget's prudent measures for MSMEs and India INC. He pointed out that extending the tax concession period for start-ups by another year is a positive step. Additionally, a 15% tax rate has been set for newly established manufacturing units.

The incorporation period for these units has been extended to 31 March 2024. This extension is expected to further stimulate manufacturing activities. The budget's initiatives aim to support various sectors and encourage economic growth through strategic fiscal measures.

Overall, while the budget has introduced beneficial measures for MSMEs, there remains a call for more comprehensive support in terms of trade and taxation policies. These changes could enhance business operations and provide more opportunities for growth within the sector.