The Union Budget for the year 2022 was presented on February 1 by the Union Finance Minister Nirmala Sitharaman.
Coimbatore: The Confederation of Indian Textile Industry (CITI) and the Indian Chamber of Commerce and Industry (ICCI) hailed the Union Budget 2022-23 which was presentedd on February 1 and aimed at the inclusive growth of New India.
'CITI' Chairman, T Rajkumar outlined the following:
• India's growth estimated at 9.2 percent, highest among all large economies.
• The Special Economic Zones Act will be replaced with new legislation for the development of enterprise and hubs. It will cover the existing industrial enclaves and enhance the competitiveness of exports.
• The Emergency Credit Line Guarantee which has provided additional credit to MSMEs, extended till March 2023. Guarantee cover to be expanded by Rs.50,000 crore to a total cover of Rs. 5 lakh crores. Additional amount earmarked exclusively for hospitality-related sectors.
• CITI hails that with 1486 Union Laws repealed, Ease of Doing Business 2.0 will be launched. The Government will follow the idea of trust-based Government. With the aim to take Digital Banking to every citizen, 75 digital banking units in 75 districts of the country will be launched.
• The budget allocation for Procurement of Cotton by Cotton Corporation of India (CCI) under Price Support Scheme was Rs. 136 crores in 2021-22, which was revised to Rs.8439.88 in 2021-22, and further increased to Rs.9243.09 crore in Budget 2022-23. Hence, the total budget for textiles also increased around four times for the same period from Rs.3444.61 crores in Budget 2021-22 to Rs.12011.92 crores in Budget 2022-23.
• "Inclusive development is the Government's priority which includes procurement of Kharif and Rabi crops (cotton, wheat, paddy) benefitting over 1 crore farmers."
• The revamp of credit guarantee trust for micro small enterprises scheme (CGTMSE) with required infusion of funds. “This will facilitate additional credit of Rs. 2 lakh crore for MSEs and expand employment opportunities.
• The use of Kisan Drones for crop assessments, land records and spraying of insecticides is expected to drive a wave of technology in the agriculture and farming sector.
• The budget allocation for Procurement of Cotton by the Cotton Corporation of India (CCI) under Price Support Scheme was Rs.136 crores in 2021-22 which was revised to Rs.8439.88 in 2021-22 and further increased to Rs.9243.09 crore in the Budget 2022-23.
• Hence, the total budget for textiles also increased around four times for the same period from Rs.3444.61 crores in the budget 2021-22 to Rs.12011.92 crores in 2022-23 Budget."
The Indian Chamber of Commerce and Industry (ICCI), Coimbatore, President, C Balasubramanian stated, "The Budget for 2022-2023 for the Union Government presented by the Hon’ble Union Minister for Finance, Smt. Nirmala Sitharaman was a quiet affair both in Parliament as well as outside. There are no major controversial or surprise element in the Budget.
The emphasis of the Government for increasing capital expenditure and thereby promoting economic growth in the country to overcome the difficulties due to the Covid-19 pandemic, the Government proposes the capital expenditure of Rs. 10.6 crores, both at the Central as well as State structure. This is a welcome step.
Some of the announcements which have significance from the economic view of the Coimbatore region as well as the economy of the country are the following:
The ECLGS Scheme has been extended up to March 2023. This will help MSMEs in Coimbatore greatly as repayment of the loans taken in this scheme would commence in September 2022.
The Government proposes to encourage multi-modal Transport and Logistics Park. Coimbatore has been long seeking such facilities and hopefully, these facilities will be created in this vital infrastructure in Coimbatore during the year.
The Government proposes to give additional funds and facilities for Urban Planning and capacity building. Coimbatore’s 'Master Plan' which is in formulation should benefit from the Scheme.
The Government also announced Integrated Transport Scheme for Metro Rail as well as road transport. Again, Coimbatore has been seeking Metro Rail and this scheme should benefit Coimbatore.
A reduction in the import duty for diamond as well as imitation jewellery has been announced. As a manufacturing centre for jewellery, Coimbatore may hope to benefit from it.
As a part of it, the programme for climate control which the Government proposes will encourage use of solar power and agro forestry. Coimbatore has been in the Vanguard in both the schemes and should make further progress. Government proposes to allot 68 percent of the defence procurement to indigenous manufacturers.
With Coimbatore as a development centre for defence protection, this scheme would help Coimbatore.
In the last year, the Engineering Industry in Coimbatore has been suffering heavily due to increase in the prices of steel products. The Government has taken note of the increase in steel prices and proposes to moderate/reduce the import duty on special and alloy steel products."
Other announcements of Budget 2022 that were welcomed are:
1. Allowing surcharge on all capital gain on all assets which have been brought down to 15 percent.
2. The 75 percent bills for supplies for Central Government will be paid in 10 days and the Government will also introduce a scheme for submission to Monitoring and Payment of Bills on a e-platform.
3. Blending of Bio-fuel will be encouraged by a concession of Rs.2 per litre which should help sugarcane farming.
4. The accumulate exit scheme for companies to be introduced.
5. The land records modernization will be speeded up and registration process on all assets would be made easier on digital platform.
6. E-passports will be introduced. Digital rupee will be rolled out during current year.
7. A Battery Swapping Policy would promote e-vehicle adoption.
8. A digital on-line education scheme for schools in particular for Government schools, will be introduced.
9. The creation of digital content for these online courses would be provided by the digital university.
The State Governments would get interest-free funds of Rs.1 lakh crore as capital expenditure. This will certainly help Coimbatore industries and economic development.
Overall, the budget is well-balanced and good, citizen-friendly and mostly aligned toward the Government’s 'Make in India,' 'Cleaner India' and 'Ease of Doing Business Agenda," concluded the 'CITI' Chairman, T Rajkumar.