Budget 2022 proposals to boost growth, generate jobs, say industry experts

The Budget proposals on capital expenditure, MSME sector, and digital banking will boost growth and promote job creation, say experts.

Among other things, Finance Minister Nirmala Sitharaman unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to firing up the key engines of the economy to sustain a world-beating recovery from the pandemic.

Commenting on the Budget announcements, Shyam Srinivasan, MD and CEO, Federal Bank, said 35 per cent increase in capex for infra development, 65 per cent defense capex for local companies, tax incentives for startups, new cargo terminals all indicate the refreshingly clear and well-structured aspiration of Atmanirbhar Bharat.

Sanjeev Krishan, Chairman PwC in India was of the view that Budget 202223 continues to provide much-needed relief to the COVID-hit MSME sector. The revival of MSMEs is critical both from growth and employment perspective, and these measures are geared towards building a vibrant MSME sector, he said.

Kapil Mehta, Co-founder, SecureNow Insurance Broker said the main benefit of the budget for insurtechs is the emphasis on MSMEs and future growth. There are a host of measures aimed at small business, ranging from credit guarantee schemes to improving the ease of doing business, that help MSMEs navigate economic uncertainty, he added.

Founder and CEO Tushar Aggarwal, Stashfin was of the view that support announced for digital payment and banking will be welcomed by the sector. He said building awareness of digital payments and promoting financial literacy is critical to India achieving the vision of a USD 1-trillion digital economy.

Dhanuka Agritech Group Chairman R G Agarwal said the government's focus on augmenting infrastructure via the Gati Shakti plan and focus on the promotion of usage of drones for various farm activities is a welcome step and would immensely help the agriculture sector.

"However, it would have been also apt had the Finance Minister... reduced GST and customs duty rates on some of the agro-chemicals products, which would have reduced the overall cost for the farmers," he added.

On the government's proposals, Omkar Rai, Ex-DG, STPI said the Union Budget has all the ingredients needed to make India the world's biggest startup ecosystem. The extension of the incorporation period for eligible startups will certainly give a boost to this segment, he said.

Rishad Manekia, Founder and MD, Kairos Capital said the taxation along with the introduction of an Indian CBDC in 2022 gives a much clearer idea about the way forward for the blockchain ecosystem in India and how the government is thinking about this space.

Ujjwal Singh, CEO and President, Infinity Learn said the extension of the PM eVIDYA initiative 12 to 200 TV channels will give the segment the requisite boost.

Piyush Gupta, CEO, Polytrade expects that in near future the government will continue to support and encourage digital currencies that will propel the GDP to USD 5 trillion as envisaged by the government.

Manish Chandra Co- founder and Director RailRestro said the announcement of 400 Vande Bharat trains is an encouragement for more public-private partnerships in the Indian Railways and this will help unlock the underlying opportunities in the sector for maximum growth, revenue generation and job creation.

Ajay Srinivasan, Chief Executive, Aditya Birla Capital said the capex-heavy budget has reiterated focus on public investment to modernise infrastructure over the medium term.

"The overall focus is clearly to nurture growth and support the economic recovery," he said.

Sunil Gupta, MD and CEO, Avis India opined the EV ecosystem will benefit from a battery-swapping strategy that will be implemented alongside interoperability standards.

Adhil Shetty, CEO, BankBazaar.com opined India will now join a handful of nations to launch its own blockchain currency.

George Alexander Muthoot, MD, Muthoot Finance said the announcements relating to MSMEs and thrust on digital banking will further go a long way in supporting the economy.

Tarun Chugh, MD and CEO, Bajaj Allianz Life said the overall budget had two positive highlights one is on the infrastructure push and the other on how systematically the government is prioritising digitisation and building the eco-system.

A Sakthivel, President, FIEO was of the opinion replacement of SEZ Act with a new legislation to meet the requirement of a dynamic sector of international trade and transparent and risk based customs administration of SEZ will make special economic zones an engine of economic growth and employment creation besides exports.

The textile and handloom industry exports would get a further boost by providing exemptions on items such as embellishment, trimming, fasteners, buttons, zipper and lining material, Pawan Gupta, Founder and CEO of Connect2India, said.