The budget is in line with the Make in India and Atmanirbhar Bharat concepts           

By OEM Update Editorial February 17, 2022 11:58 am IST

Reflecting his views, V. Anbu, Director General & CEO, IMTMA and Bangalore International Exhibition Centre  notes  MSMEs stand to benefit enormously from Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023. 

• “The robust allocation of ₹7.5 lakh crore (up by 35.4% Y-o-Y) as capital expenditure for FY 23 would give a boost to commercial vehicle sales domestically, especially in the medium and heavy commercial vehicle segment. It will also create a buoyancy to meet and sustain demand for different industry sectors besides augmenting machine tools demand.”
• “The extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 and extending it with focus on hospitality and related enterprises will help mitigate the adverse impacts of the pandemic. Indian machine tool industry is dominated by MSMEs and this measure will help making the industry more resilient and competitive. Machine tool industry is the backbone of MSMEs and as 90% of the industry comprises of MSMEs, they stand to benefit enormously from these measures.”

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“The budget is in line with the Make in India and Atmanirbhar Bharat concepts with 68% of capital procurement budget in defence being earmarked for domestic industry in 2022-23 to enhance domestic development of technologies besides opening up defence R&D for industry, startups and academia.”
• “Furthermore, capital goods sector occupies a strategic position in India’s economy as it provides the machinery and equipment needed for industries engaged in manufacturing of goods and services. Conventionally, the Indian capital goods sector has been dependent on imports. In this light, simplifying of customs rate and tariff structure for sectors such as textiles and metals, removal of exemption on items that can be manufactured in India and providing concessional duties on raw materials that go into manufacturing of intermediate products will go a long way in boosting indigenous manufacturing. Also, the few exemptions extended on inputs like specialized castings, ball screw and linear motion guideways would encourage domestic manufacturing of capital goods.”

For more info, visit: https://www.imtma.in