CII welcomed the Govt.'s unwavering commitment toward boosting investments, creating jobs, improving ease of doing business, maintaining tax stability and certainty in policy regime through well-designed and prudent measures delineated in the Budget.
Coimbatore: Chandrajit Banerjee, the Director-General of the Confederation of Indian Industry (CII) welcomed the Government’s unwavering commitment towards boosting investments, creating jobs, improving ease of doing business, maintaining tax stability and certainty in policy regime through well-designed and prudent measures delineated in the Budget.
"With some success in implementation, we are confident that the growth projection made by the Economic Survey at 8.0-8.5 percent in 2022-23 will be met. Focus on growth is essential for the creation of jobs and for generating resources to be spent on health and education of the masses, as well as for social welfare measures. Higher growth is also important for ensuring debt sustainability and overall macro-economic stability," stated Banerjee.
"We are happy to note that boosting investments was the leitmotif of the Budget through enhanced public investments at both Centre and support to the State Government capital expenditure. The massive 35.4 percent rise in capital spending budgeted for 2022-23 is in line with CII’s suggestion and lends credence to the Government’s vision of improving the economy’s growth potential through a push to overall productivity of the economy and creation of jobs," stated Banerjee.
"Even as a boost was given to investments, the Finance Minister did a fine balancing act of maintaining fiscal discipline by containing the fiscal deficit at 6.9 percent for the current fiscal and bringing it down along a steady glide path of 6.4 percent next year," he added.
C K Ranganathan, Chairman, CII Southern Region & Chairman, CavinKare Pvt Ltd said that the Union Budget sets the tone for India’s aspiration to be the fastest-growing major economy this decade. "The Finance Minister presented a very growth-oriented and transformative budget which will not only strengthen the economic recovery currently underway but also lay the foundation for bolstering the medium to the long-term growth potential of the economy.
The budget has also addressed the major issues in the competitiveness of manufacturing and exports, ease of doing business, and cost of logistics. These reforms need to be implemented in a timely manner to encourage an increase in private investment and jobs in manufacturing. The big push on infrastructure and related areas will also have a positive impact on other sectors," added C K Ranganathan.
He also added, "CII welcomes the consideration by the Government of its long-standing recommendation of enhancing the ECLGS corpus to Rs. 5 lakh crore and timeline extension till 31 March 2023. Another important announcement that will support the growth of MSMEs is revamping the Credit Guarantee Trust for MSEs and facilitation of an additional credit of Rs. 2 lakh crore. The budget this year is providing new opportunities to MSMEs who can now use Surety Bonds as a substitute for Bank Guarantees for the Government procurements which will reduce the impact on working capital and boost industrial growth in the form of credit assistance."
C K Ranganathan also welcomed the support given to agriculture and infrastructure as growth drivers and highlighted that there were minimalistic tax changes in this year’s budget, allowing for capital expenditure, job creation, and support for start-ups.
Dr. S Chandrakumar, Chairman, CII, Tamil Nadu and Founder & Executive Chairman of Sri Kauvery Medical Care India Ltd. believed that the focus on agriculture, skilling, increasing health infrastructure and hospitality sector will greatly enhance the economic position of states, especially Tamil Nadu. "The river-linking project announced for Tamil Nadu in the budget will increase the irrigation facilities for the State and will help increase agriculture production.
As far as the manufacturing sector is concerned, the increased outlay for PLI scheme will help the industries in the State and also generate more employment opportunities. The extension of ECLGS scheme for the tourism and hospitality sector will greatly benefit the industry which suffered due to lockdown in the State. Further, increased digital infrastructure, reduction in compliance and infrastructure enhancement will surely benefit the MSMEs in the State."
Kamal Bali, Chairman of the Sustainability Sub-Committee & President & Managing Director of Volvo Group India stated that the budget is progressive, thoughtful, imaginative, and growth-oriented which touches all socio-economic segments while embracing technology and modern tools of governance. "The budget has rightly allocated the highest ever Capex of 100 billion dollars (Rs.7.5 lakh crore), up 34 percent over the last year, aimed at creating and improving our logistics infrastructure through PM Gati Shakti NMP, as well as social sectors of health, education, women, housing and the needs of our 112 aspirational districts, this, while following the agreed pathway on the fiscal deficit (4.5 percent by FY 25-26)," he added.
S Chandramohan, the Co-Chairman of Agri & Food Processing Sub-Committee, CII-SR & Director of TAFE Ltd. in his reaction to the Budget appreciated the digital PPP model of investment in the agri-sector stating that the support offered to agri-startups, the push for chemical-free natural farming, overall digitization of agriculture and the five river-linking project that will give relief when implemented were all good initiatives.”
M Ponnuswami, Chairman, Policy & Ease of Doing Business Sub-Committee, CII-SR and Chairman & Managing Director of Pon Pure Chemical India Pvt. Ltd. welcomed the reduction of procedural burden in relation to Ease of Doing Business. “Digitalisation of procedurals for business and SEZ customs will be very good for growth,” he opined.
Hari Thiagarajan, Chairman, Education, Skills & Job Creation Sub-Committee, CII Southern Region & Executive Director, Thiagarajar Mills Pvt. Ltd. said that initiatives like Digital University for ICT with the hub and spoke model and e-vidya portal would bridge the gap and address the needs of rural education. He also pointed out that creating space for international universities to set shop in India will encourage unique, important courses and improve the scope of higher education in India.
Arjun Prakash, Chairman, CII Coimbatore & Wholetime Director, Effica Automation opined, "Budget 2022 is a growth-oriented long-term budget with a 25-year blueprint and vision for India. The emphasis on growth has been given by capital outlay, schemes and various incentives from public infrastructure expenditure and private capital expenditure, fuelled by a higher budget-deficit estimate of 6.4 percent.
Although there have been very few changes in direct and indirect taxation to alleviate the pandemic-related slowdown, the increased expenditure should lead to good growth in industrial activity and growth in jobs, and hence provide some relief to the industry and people. However, the Government should ensure tight control on inflation to avoid any adverse effect on the economy," he reiterated.
Prashanth S, Co-Founder, and Director, Quadrasystems.net (I) Pvt. Ltd. stated, "With Budget 2022, the Finance Minister has focussed on the twin aspects of stability and growth. The tax structure remains largely unchanged which is a good signal for investors looking at India, as it shows long-term thinking. With the focus on digital and core infrastructure through Amrit Kaal's four priorities, including PM's Gati Shakthi, the Government has clearly conveyed its intention to make sure that India enjoys inclusive growth.
Initiatives such as Bharat Net and support for the 5G rollout will ensure that digital becomes the way for India to prosper as a country. There are also substantial plans for Agriculture, Healthcare and Education - again, foundational to a vibrant and well-balanced society."