The Union Budget for 2022-23 tabled in Parliament on February 1 evoked a mixed response from the corporate sector, industry and other stakeholders in Mysuru.
While the Confederation of Indian Industry, Mysuru centre said that the budget has impactful aspects and will benefit the industrial sector and the general public, other stakeholders do not share the same enthusiasm.
Pavan Ranga, Chairman, CII, Mysuru said the Production Linked Incentive (PLI) announced in the budget will give a boost to industrial production and help create more jobs. He welcomed the emphasis on improving connectivity and said logistics was a major challenge in India, and this issue was being addressed with focus on building a network of high-quality roads, railway tracks, airports and sea ports. All of these will add to the overall efficiency of the industrial sector.
MSME Council Mysuru regretted the lack of a booster dose of incentives and support schemes for the micro, small and medium enterprises. Suresh Kumar Jain, General Secretary of MSME Council, said they were expecting direct financial support for units. Almost 93% of the 6.5 crore MSME units lack institutional financial support from banks though the sector was employing nearly 12 crore people, he said.
He said MSMEs contribution towards exports is 49% of the total export component, but nearly 30% of the units had shut down due to the impact of the Covid-19 pandemic.
On the positive note, there are a few measures that will indirectly benefit the MSMEs, including earmarking 68% of the defence capital procurement budget for purchase from domestic industry.
The MSME Council also said extension of customs duty exemption for steel scrap for another year will provide relief to MSME secondary steel producers.
Prof. B. Sadashive Gowda, educationist and principal, Vidyavardhaka College of Engineering, Mysuru, welcomed the emphasis on digital learning, providing digital infrastructure and training by establishing a digital university.
He said measures announced to impart education in all regional languages from class I to X is a good initiative. The proposal for new e-learning content delivery platforms to be launched via the internet, TV and smartphones to help students in rural and semi-urban areas are path-breaking initiatives.
Stakeholders in the tourism sector said they expected incentives and schemes to put the derailed sector back on the rails, but are disappointed with the budget. C. Narayana Gowda, president, Hotel Owners’ Association said the fortunes of the hospitality sector are directly linked to revival of travel and tourism. Though there are broad schemes which will have long-term bearing, there was nothing specific to provide immediate benefit to the ailing sector.
