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Mr. Namit Bajoria, MD, Kutchina Home Makers Pvt. Ltd.
“In spite of the Covid prompted lockdowns, the economy has done substantially well. GDP growth is expected to range between 8.7% and 9.4% this FY 2021-22. Growth will continue to remain stronger in the following years as well, with the possibility of the economy growing at as high as 9% in FY 2022- 23 and 7.6% in the following year. However, it is also a fact that MSME has been hit badly, resulting in loss of jobs despite Government schemes like GECL, etc. There are also sectors such as Travel & Tourism, Hotels etc which have been disproportionately affected. As a result, expectation from Budget 2022 would be sustained measures to enable the ecosystem around job, income, and demand creation. India is a domestic-demand- driven economy, and a strong recovery will require a sustainable pickup in demand. That will require more jobs and employment opportunities to fatten-up consumers’ wallets.
Since micro, small, and medium-scale enterprises (MSMEs) are the biggest job creators of India, the government will have to emphasise reviving the sector by enabling the ecosystem that supports these enterprises. Identifying their pain areas and devising a solution to help them become a part of ‘Atmanirbhar Bharat’ will aid in their recovery. In addition, access to credit is critical, and providing targeted credit support to these enterprises should be considered. The government may choose fewer segments to start with and revive opportunities for those selected MSMEs. Also, there has to be more allocation towards building the health infrastructure and preparing the workforce for the future through training and skill developments. COVID-19 has certainly highlighted the gaps in health infrastructure that needs to be replenished.
From the taxation side, the deduction for CSR expenses and other expenditures incurred on account of the pandemic needs to be allowed. Extract/recalibrate the amendment denying tax depreciation on goodwill; alternatively, the amendment be made perspective and fostering be allowed for pre-existing goodwill. Also, Roadmap of incentives/programs for a wide range of sectors – extending PLI schemes to different sectors needs to be reviewed.”
