The Industrialist, TANSTIA, COTMA has expressed partial happiness while on the other hand, they have expressed disappointment over the Union Budget presented for the year 2022, by the Union Finance Minister, Nirmala Sitharaman.
Coimbatore: Industrialist have stated that the Union Budget of 2022 is half welcoming and half disappointing.
The union budget for the year 2022 has been presented by the Union Finance Minister Nirmala Sitharaman on Tuesday, and the Industrialist have been voicing their feedback.
Surulivel, Vice President, Tamil Nadu Small, and Tiny Industries Association TANSTIA, stated, “The Union Budget is welcoming in some ways and also disappointing in some ways.” Listing out the welcoming features, such as 400 New Vande Bharat Trains, 100 Cargo Terminals, Extension of 25,000 km highway, One Railway Station One Manufacturing Material Project for Local Business Development, Promotion of organic farming, River Annexure Scheme, Reforms of Special Economic Zones, Encouraging the production of electric vehicles, A sum of Rs 2 lakh crores allocated to micro-enterprises sector, 68% of military equipment is manufactured locally, 50,000 crore loan allocation through ECLGS loan scheme and the Government institutions have to pay the full amount to small and marginal enterprises in full within 7 days.
While on the other hand, the disappointing features include,
1. Non-reduction of 5% GST for job-work companies.
2. Non-extension of NPA for 180 days in case the loan is not paid within 90 days.
3. No formation of a separate Ministry for the Micro Enterprises, despite asking for it for many years.
Sivakumar, President, Coimbatore and Tirupur District Micro and Cottage Entrepreneurs Association stated that “The move to increase loan to entrepreneurs from 50,000 crores to 5 lakh crore by March 2023 under the ECLGS and the 2 lakh crore industrial loans under the CGTMSE scheme are welcoming.
However, he stated that he was disappointed as there were no announcements on curbing the rise in raw material prices, reduction in interest rates on bank loans, increasing personal income tax ceiling and extending the time period for repayment of bank loans.