Union Budget 2022:23 MSME Sector Welcomes Steps Taken

The MSME sector has welcomed the initiatives taken in the Union Budget 2022:23 for the sector.

"The extension of ECLGS scheme is a welcome move for MSMEs. The credit and fiscal support of 5 lakh crores will give a huge boost to this sector encouraging new businesses to come to the fore. This announcement will certainly generate more than 10 lac of employment opportunities in a short span of time. However, a slight focus on easing the trade and the taxation policies for MSMEs facilitating more freedom to do business was also expected from this year's budget announcement," says Chandan Garg, Chairman & MD, Innovana Group.

Vivek Bali, CEO of Enrich says, "The credit line guarantee scheme and the credit guarantee trust for micro and small enterprises should extend to the beauty business covering salons, start ups etc as this is one segment which has also been hit by the pandemic."

According to Siddharth Maurya, Resource Specialist, Fund Management, the budget session has taken some prudent initiatives for MSMEs and India INC.

"For start-ups the tax concession period has been extended by one more year, which in my opinion is a very positive move. Likewise, a 15% tax has been decided for the newly incorporated manufacturing unit. The period of incorporation has been increased by one more year to 31-3-2024. This will further boost manufacturing activities," he says.