DSIJ Mindshare

Budget 2022-23: Highlights for SMEs and MSMEs

The Union Budget aims to simplify the customs rate and tariff structure, particularly for sectors like chemicals, textiles & metals.

DSIJ Intelligence 0 831 Article rating: 3.5

The FY22 expenditure was revised to Rs 37.7 lakh crore. Also, the FY22 fiscal deficit is estimated at 6.9 per cent of the GDP. In FY23, the fiscal deficit was pegged at 6.4 per cent of the GDP. Also, the FY23 Capex is targeted at Rs 7.50 lakh crore. FY23 effective Capex was seen at Rs 10.7 lakh crore. The SMEs and the MSMEs have continued to be under stress due to the successive waves of the pandemic, which have not only disrupted their operations but also, impacted demand, particularly in services. The extension and expansion of the ECLGS Scheme to Rs 5 lakh crore is a step in the right direction to provide further liquidity relief to these sectors. Further, the plans to revamp the credit guarantee fund have been announced to make it more effective. New railway routes have been planned, which would benefit SMEs as well as the farmers.   

Budget 2022: Renewable energy stocks surge as government announces additional funds under PLI Scheme

This is on track with the government’s constant effort to cut India’s total projected carbon emission by 1 billion tonnes by 2030.

DSIJ Intelligence 0 840 Article rating: 3.6

Budget 2022-23 is observed to be growth-inducing and does give a significant push to increase capital expenditure. The attention on boosting manufacturing while emphasising areas such as startups, modern mobility, and clean energy, shows the FM has prioritised long-term growth. 

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