Budget 2022: ‘India leads world order’, here’s how India Inc reacted

Nirmala Sitharaman came with some surprises in this Budget with the 30 per cent tax on digital transactions and an extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs till March 2023 with its guarantee cover expanded by Rs 50,000 crore to Rs 5 lakh crore.  The additional amount earmarked for hospitality and related sectors will help these segments recover to pre-pandemic levels.
 
The Finance Minister said, “Hospitality and related services, especially those by micro and small enterprises, are yet to regain their pre-pandemic level of business. Considering these aspects, the ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to a total cover of Rs 5 lakh crore with the additional amount being earmarked exclusively for hospitality and related sectors.”

RPG Enterprises chairman Harsh Goenka harkened back to the popular online word game Wordle to express his opinions on the Budget 2022-23. The Wordle puzzle shared by Goenka said, “INDIA LEADS WORLD ORDER.” Goenka shared this Wordle puzzle and tweeted, “With today’s Budget focused on capex, digital and welfare – I can clearly imagine the future. Today’s wordle-Budget edition.”

Biocon Executive Chairperson Kiran Mazumdar-Shaw called this Budget a “positive rhetoric with no negative surprises= balanced budget”. She added that fiscal prudence and business ease has been the theme of this budget and a 35 percent rise in capex will drive infrastructure and jobs.

Mahindra Group chairman and Padma awardee Anand Mahindra has also applauded Nirmala Sitharaman for giving a brief Budget speech this year. Sitharaman’s Budget speech was 90 minutes long this year and lasted from 11 am to 12:30 pm. “Brevity has always been a virtue. Nirmala Sitharaman’s shortest budget address may prove to be the most impactful…,” the Mumbai-based business mogul tweeted.

Kotak Mahindra Asset Management MD Nilesh Shah also dropped in to say that Union Budget for FY23 is a “partnership budget” and that the government will invest in building blocks for centenary. He further explained, “Inter operability standards, defence allocation for local manufacturers, logistics infrastructure development all require public private partnership between entrepreneurs and government. Revenue estimates are very conservative on tax as well as non tax side.”

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NITI Aayog CEO Amitabh Kant, Medanta chairman and managing director Dr Naresh Trehan and FICCI President Sanjiv Mehta hailed the Budget 2022 as no new taxes were implemented and skilling initiatives were intensified. Kant said, “This Budget looks at sunrise areas of growth. India needs to go green, India needs to go digital and that is what this Budget pitches for. It pushes for urbanisation, clean electricity, clean mobilisation and digital rupee.”
 
Dr Trehan underscored that there was very little mention of the healthcare sector in the Budget 2022 speech. He, however, said that skilling initiatives in the sector have been intensified and that is good while adding that skilled manpower is required to run the healthcare system.
 
FICCI President Sanjiv Mehta said, “Two things—consistency of policy and consistency of tax rate are important from the business point of view. For this I would thank the Finance Minister for not making much changes in it. New taxes also not implemented.”
 
Fullerton India’s Chief Business Officer Ajay Pareek backed the government for extending ECLGS till March 2023 and expanding the guarantee cover by Rs 50,000 crore to Rs 5 lakh crore. Pareek also backed the Budget for focusing on utilising the fintech sector to enhance financial inclusion.
 
“The FM has delivered a Union Budget today that was clearly focussed on economic recovery through increased capital expenditure for the country’s growth. The push towards self-reliance reveals the government’s steadfast intention to achieve the long-term goal of ‘Atmanirbhar Bharat’. The extension of the ECLGS scheme till March 2023, as well as the expansion of the guarantee cover by ₹50,000 crore to ₹5 lakh crore is a welcome sign for the NBFC sector and over 130 lakh MSMEs. The thrust to digitise India and the focus on the fintech segment will help enhance financial inclusion. The affordable housing segment also received a boost today, with the allocation of Rs 48,000 crore under the PMAY urban and rural schemes,” said Ajay Pareek, Chief Business Officer, Fullerton India.
 
Meanwhile, BharatPe CEO Suhail Sameer welcomed the government’s decision to set up 75 digital banking units across India and also hailed the ‘One Nation One Registration’ initiative aimed at ensuring ease of living and ease of doing business.
 
“We strongly appreciate the government’s decision to set up 75 digital banking units in the country. This will help promote digital payments aggressively in the country and drive financial inclusion further. The introduction of RBI approved digital rupee is another landmark move- it will disrupt the Indian payment system and add a new dimension to the financial system. ‘One Nation, One Registration’ is a great initiative as it will facilitate ease of living and doing business,” Sameer also noted.
 
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