Union Budget 2022-23 updates on MSMEs

Union Budget 2022-23 updates on MSMEs

The Finance Minister made the following announcements to revamp the MSME sector in the Indian economy-

  •  Extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till 2023.
  •  Additional cover of 50000 crores exclusively for the hospitality and related enterprises.
  • Roll out of Raising and Accelerating MSME Performance (RAMP) program with an outlay of Rs 6,000 crore over the next 5 years.
  •   Extension of custom duty exemptions for another year to secondary MSME steel producers.

The government proposed more credit to MSMEs in the coming financial year. There are better prospects for recovery of MSMEs from pandemic impact through employment generation on digital channels.

 The MSMEs will get relief from the extension in the timeline and the increase in outlay towards ECLGS. The additional infusion of funds will assist them in overcoming the adverse impact of the pandemic.

The budget aims at improving the market access, access to credit, strengthening the institutions and governance in the center and at the state. It plans to enhance the ongoing development programs to manoeuver the competitive aspects of the MSMEs. The MSME secondary producers get the benefits of exemptions on the customs duty on stainless steel scrap for another year. 

Various anti-dumping and countervailing duties were revoked from the following sectors-

  • Stainless steel
  • Coated steel flat products
  • Bars of alloy steel
  • High-speed steel  

This will prove beneficial in the wake of prevailing high prices of the metals. The umbrellas faced a rise of 20% in their custom duty and the previous exemptions given to the umbrellas were withdrawn in the new budget.

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