Budget Reactions 2022: Industry Reactions To The Union Budget 2022-23

While presenting the Union Budget, Finance Minister Nirmala Sitharaman made many major announcements, including the introduction of 60 lakh employment across 14 sectors, the digitalization of the rupee and passports, the launch of a unique gateway for the National Digital Health Ecosystem and even more. Experts from various sectors have expressed their views on the Union Budget for the years 2022-23 which are discussed here.

Mr. Madhusudan Ekambaram, Co-Founder & CEO, KreditBee and Co-Founder, FACE (Fintech Association for Consumer Empowerment) has said "Union Budget 2022-23 had special emphasis on Financial Inclusion, technology adoption and entrepreneurship in the Union Budget 2022 -23, which is highly appreciable. Initiatives like Desh stack e-portal and interlinking of Udyam, e-shram, NCS and Aseem portals will surely contribute to the Digital Infrastructure and entrepreneurial push. Introduction of Central Bank Digital Currency (CBDC), leveraging blockchain technology will influence the digital transactions and hence its implementation process will be something to pay attention to. Government's recognition of startups as the drivers of economic growth is heartening."

He further added that "Measures like setting up an expert committee to suggest measures to help attract investment and extension of tax incentives period for startups incorporation by 1 year, will certainly aid in creating a healthy startup ecosystem. Equally encouraging is the Government's bid to boost digital banking and financial inclusion with initiatives like bringing 100% of 1.5 lakh post offices into the core banking system. In a broader sense, the Finance Ministry has presented a distinctive set of measures in Union Budget 2022-23, with a streamlined focus on rapid, holistic and inclusive economic growth."

Mr. Alok Mittal, Co-Founder & CEO, Indifi Technologies has expressed that "This year's budget has taken significant future-forward steps towards financial inclusion; the integration of post office banks, widening the scope of MSME portals and setting up digital banking are all incredible steps in extending access to finance. Moreover, the budget has also addressed the current pain points of the MSME ecosystem by extending ECLGS, with the additional allocation to be earmarked for hospitality and related industries. This provides a renewed impetus for the lending ecosystem to lend to MSMEs and empowers them. Steps taken to leverage portals like Udyam, e-shram, NCS & Aseem will go a long way in further strengthening credit facilitation and enhancing entrepreneurial opportunities for MSMEs."

He also added that "In terms of startups, initiatives taken towards amping up the ease of doing business in India are welcome additions to the budget. Moreover, the steps taken for existing start-ups like extending tax redemption and steps taken to attract more investment into the ecosystem is encouraging for the entrepreneurial spirit of India."

Vedanta Resources Executive Chairman Anil Agarwal tweeted: "We stand with the government in its exhortation for Sabka Prayas. The private sector is committed to nation-building, job creation and will work with the government and the people of India to fulfill our goals".

Mahindra Group Chairman Anand Mahindra tweeted: "Brevity has always been a virtue. @nsitharaman 's shortest budget address may prove to be the most impactful". -- Biocon Executive Chairperson Kiran Mazumdar-Shaw tweeted: "Fiscal prudence and business ease have been the theme. 35% increase in capital expenditure will drive infra n jobs - Positive rhetoric with no negative surprises = balanced budget".

RPG Enterprises Chairman Harsh Goenka tweeted: "With today's budget focussed on CAPEX, digital and welfare - I can clearly imagine the future."

Mr. Vikash Khandelwal, CEO of Eqaro Guarantees, has also expressed his views on the Union Budget for the period 2022-2023, stating that "The Surety Insurance sector could not have asked for a better start to the year. The IRDA released the final guidelines in January. The FM today announced in the budget that the Surety bonds will replace the traditional bank guarantees applicable for government projects. This addresses the issue of acceptance of surety bonds. Reforms in public procurement & timely payments are other big positives. All these steps will help improve the health of the infra sector."

He further added that "The emergency Credit Line Guarantee, for additional credit to MSME, extended till March 2023 with a guarantee cover of Rs 5 lakh cr will help revive MSMEs. The major thrust of the budget being infra and extra spending announced will help the broader economy. The Indian economy cannot bounce back to double-digit growth without the infra sector doing well. The surety insurance sector will play an active and key role in providing a boost to the infra sector."

Mr. Vaibhav Agrawal, Teji Mandi's CIO and Founder, has also noted that "With CAPEX target of 7.5 lac crores, and incentives and announcements across several different industries, the government is clearly looking to revive growth in the economy. The government is also focusing on giving achievable numbers and making the budget more transparent. Sectors likely to benefit would be banking, infrastructure and manufacturing exports. Furthermore, with the buoyancy of tax revenues, the government has extended CAPEX support for states to Rs. 1 lac crore. This budget has covered a vast array of stakeholders. The focus will now be on budget fine print and execution of all the points made in the budget speech."