Budget 2022 proposals to push exports, manufacturing: Exporters
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.
