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Union Budget 2022 Industry Reactions #UnionBudgetWithSMEStreet

From Drones to Crypto to MSME focused announcements like ECLGS Extension, industry is coming forward with a warm welcome to Finance Minister Nirmala Sitharaman's latest Budget Speech. #Budget2022WithSMEStreet

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This is third day from the Budget speech. Industry is still coming forward with their comments and perspectives on Union Budget 2022.

Mr Harshvardhan Lunia, CEO & Co-founder at Lendingkart expressed his positive response on Union Budget and welcomed FM Nirmala Sitharaman’s Budget 2022 speech by saying, “We laud the Government for a pro-growth budget. We are glad to see the Government’s continued commitment to strengthen the MSME segment across industries through a host of positive measures including the ECLGS scheme, which has been extended till March 2023 by 50 thousand crores. This has come at the right time and will benefit MSMEs in the hospitality industry. It is also heartening to hear about the Raising and Accelerating MSME Performance (RAMP) program which will enable small businesses to become more competitive and efficient. Further, the CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises) scheme will continue with additional funds giving impetus to this segment.”

“The budget also duly acknowledged the growth of the Indian startup ecosystem. The Government’s decision to extend the eligibility of tax benefits for a year will support several startups. The budget also has positive measures around tech-based development and digital-driven initiatives to develop digital skills. In our view, this is a recognition of the impact tech start-ups have had in India. Fintech start-ups have been at the forefront in embracing digitization and will benefit from various reforms,” Mr Lunia further stated.

Ashish Bhatia- Co- Founder India Accelerator found this year’s budget a boost for Indian Startups and he pointed out, “The budget looks like a big boost for startups in India. The Ministry of Finance has extended the tax break for businesses by one year i.e. for the third consecutive year. This will not only assist entrepreneurs to obtain a much-needed boost after the pandemic but will also help them expand financially. Aside from that, Startups serving agricultural and rural sectors will be served with a fund mobilized via NABARD will be another feather in the cap.”
Mr Bhatia also added, “Additionally, to promote and welcome funding to the startups, the FM also extended the capital gains exemption for investment in startups by one more year till March 31, 2022. The budget is a pro for drone centric startups because the government will now promote “Drone as a service.”
Highlighting a perspective on FinTech, Rural Banking & Startups Segment on Union Budget 2022 annoucements, Mr. Ram Shriram, Founder, BharatATM said, “In the run-up to the Budget this year, one of the most popular demands by the startup ecosystem was the extension of the tax holiday, this is important to show the government’s commitment to building a robust startup economy and ecosystem. This is immensely important keeping the number of new start-ups registered in 2021. This is going to be a boost for young startups in the country. The country now has over 61,400 startups recognized with almost 75% of districts having at least one startup each.”
Emphasizing on Digital rupee annoucement, Mr Shriram said, “Also, the Digital rupee to be issued using blockchain and other technologies and will be issued by RBI starting 2022-23. This will give a big boost to the economy. This budget has eliminated the ambiguity of cryptocurrency legislation by bringing out the policy on digital assets tax of 30%, this is obviously a positive move that has brought little confidence in the crypto investors in India, yet the tax bracket of 30% looks higher as compared to the other countries.”

 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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