Digitalisation

Budget proposals to push exports, manufacturing: Exporters

Synopsis

The Trade Promotion Council of India (TPCI) said that the focus of Union Budget 2022-23 on reforming the rural economy, digitalisation and modernisation is progressive and forward looking.

Agencies
Leading exporter of Mumbai and founder chairman of Technocraft Industries India Sharad Kumar Saraf said that the budget is growth oriented as there are no new taxes or surcharges imposed.

Budget 2022: Highlights

Steps announced in the Budget such as extension of the ECLGS scheme, a new law for special economic zones and setting up of 100 cargo terminals will help in boosting economic growth and exports from the country, according to exporters and industry. Vikramjit Sahney, Chair – BRICS Agri Business Council, said that the announcement to promote oilseed production would help boost the domestic industry as India is currently importing 60 per cent of its oilseed requirements.

The special fund proposed through NABARD to finance agri startups and rural enterprises for farm produce value chain would also promote industrial growth in the country, Sahney said.

“The fertilizer subsidy allocation is 32 per cent incremental than the last year’s allocation. However, it is less than the revised estimate of 2022 and hoped that the government will cover the same in supplementary grants depending upon the international prices of fertilizer inputs,” he said.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for 2022-23 with an additional outlay of Rs 50,000 crore 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 would provide huge support to the industry.

“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 provide collateral-free lending and infusion of liquidity,” Sakthivel said.

He added that the replacement of the SEZ Act with a new legislation will make special economic zones an engine of economic growth and employment creation besides exports.

The Trade Promotion Council of India (TPCI) said that the focus of Union Budget 2022-23 on reforming the rural economy, digitalisation and modernisation is progressive and forward looking.

“Reforming the SEZs has been long pending and we are happy that the government has engaged state participation to make it inclusive and cluster-based for reviving the units,” it said in a statement.

The increasing thrust on PM Gati Shakti and production linked incentive scheme, the economy will keep continuing its journey on a sustained growth path, the council said.

Leading exporter of Mumbai and founder chairman of Technocraft Industries India Sharad Kumar Saraf said that the budget is growth oriented as there are no new taxes or surcharges imposed.

“A lot of stress is laid on employment generation and infrastructure development. Support is also given to MSMEs by providing additional loan facilities. The budget will certainly boost the economy by spurring growth,” Saraf said.

Global trade information provider Connect2India Founder and CEO Pawan Gupta said that the proposal to simplify the customs rate and tariff structure for sectors like chemicals, textiles and metals would provide more insights and clarity on the landed cost of these products and would allow companies to make informed decision regarding global trade for the affected products.

“The textile and handloom industry exports would get a further boost by providing exemptions on items such as embellishment, trimming, fasteners, buttons, zipper and lining material,” he said.

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Source: https://economictimes.indiatimes.com/news/economy/foreign-trade/budget-proposals-to-push-exports-manufacturing-exporters/articleshow/89298454.cms

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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