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Budget 2022: Industry body FICCI seeks support for MSMEs hit by Covid pandemic

It is very important to provide support to MSMEs, which have been affected by pandemic, Subhrakant Panda, Senior VP FICCI on expectations from Union Budget.Premium
It is very important to provide support to MSMEs, which have been affected by pandemic, Subhrakant Panda, Senior VP FICCI on expectations from Union Budget.

  • The industry body FICCI sought support for the micro, small and medium enterprises (MSMEs), as they were hit during the Covid pandemic
  • The industry body said the MSMEs are the job-creating machine of the economy and they require government push

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Union Budget 2022: Trade association and advocacy group, the Federation of Indian Chambers of Commerce and Industry (FICCI) today shared its expectations from the impending Union Budget and pushed for greater support for the micro, small and medium enterprises (MSMEs) as they were hit by the Covid pandemic, stating that they are “clearly the job-creating machine of economy."

The industry body also insisted on a Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) outlaw and similar scheme for the urban poor.

Subhrakant Panda, Senior VP FICCI, told ANI, “we're expecting a higher MGNREGA outlaw & a similar scheme for urban poor. It is very important to provide support to MSMEs, which have been affected by pandemic & are clearly the job-creating machine of economy."

He added that this will be a considered budget that will be growth-oriented and supportive of that sector of the economy which needs support at this stage.

Attention needs to be provided to the sectors like tourism and hospitality as they have been affected by the pandemic, he added.

"As far as recovery is concerned it is important to put money in the hands of consumers. thereby leading to spending and leading to demand which will, in turn, start a virtuous cycle there after kicking it. What we feel the government should maintain its focus on spending until such time that private sectors kick in," he added.

"Finally, under the reform bucket, there has been commendable work done in the field of ease of doing business. As far as reforms are concerned, measures like PLI schemes which has provided a Phillip to manufacturing in the country, Make in India and Atma Nirbhar Bharat should continue," he stated.

The FICCI Vice President said that focus should be given on Research and Development especially industries and academia interaction and measures to boost R&D, spending with a focus on innovation as well.

"Finally, I think the measure to support green technology because that is clearly the future and India has been a leader in this field thanks to Prime Minister for commitment to the net-zero emissions," he added.

"I have no doubt that there will measure forthcoming that will support the continuing recovery of the economy at a time there is little setback due to omicron leading the third wave but that is hopefully going to be behind us soon," he stated.

"What is important is to unlock the credit flow into this sector in particular and economy in general which will ensure that economic engine keeps ticking and that is the best way to support job creation," he further stated.

With the Budget Session of Parliament commencing on Monday, the government is all set to lay Economic Survey 2021-22 along with Statistical Appendix in both Houses.

Economic Survey 2021-22 and the Statistical Appendix will be laid on the table of the Lok Sabha at around 12.45 pm by Union Finance Minister Nirmala Sitharaman.

 

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