Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank:
“The Union Budget for 2022-23 seeks to support the recent economic growth momentum India has seen, and help it sustain over the long-term. The substantial rise in planned capital expenditure for creation of infrastructure, focus on affordable housing, welfare & development of MSMEs, and the farm economy will prepare India for the next phase of growth. This can lead to creation of millions of new jobs, helping India leverage its young demographic dividend. The new business opportunities and enterprises that will come up due to these projects will also benefit the banking sector.
The extension in timeline and increased outlay towards ECLGS and additional infusion of funds in the Credit Guarantee Trust for Micro and Small Enterprises will provide relief to MSMEs, especially those engaged in contact-intensive sectors, who have been adversely impacted due to the pandemic. The significant additional allocation towards PM Awas Yojana will boost demand for affordable housing, and in turn demand for housing finance. It was also heartening to hear about the Prime Minister’s Development Initiative for the North East Region find special mention in the Budget, in line with the capex projects planned for the rest of the country.”
Siddhartha Sanyal, Chief Economist and Head of Research, Bandhan Bank:
“The Budget aimed at near term boost to consumption, as well as creating the necessary physical and social infrastructure to support the country’s long-term growth ambitions. The Budget attempted to balance the needs of large and small industries and various segments of the population in the budget. While the details of the plans related to government borrowing needs to be scrutinised closely, the Finance Minister was mindful of not allowing the deficit to balloon.
The focus to support MSMEs by the extension of the ECLGS scheme till March 2023, with a larger corpus of fund is a welcome step. The CGTMSE scheme to support small and micro enterprises should also provide much needed support for this segment. Extending support for the affordable housing sector is heartening given the strong forward and backward linkages of this sector and its potential to generate employment at various levels.
The focus on some of the long term priorities such as skill development, financial inclusion, social security, and clean energy in the budget remains noteworthy.”
Euronet Worldwide is a global and industry leading payments and financial technology solutions provider.
Himanshu Pujara, Regional MD, APAC, Euronet Worldwide:
“Money has changed forms over centuries. From salt & cattle to now paper money which lasted the longest time. This is a historic budget that has defined the future of money i.e Digital Currency. A landmark step that will improve the economy and reduce Its dependence on paper money. We welcome the introduction of the Digital Rupee using block chain technology by RBI.”
Pranay Jhaveri, MD, India and South Asia, Euronet Worldwide:
We see that government has laid out a strong framework for a digital ecosystem to make it safer, secure and affordable for individuals and businesses. With the target to complete the laying of optical fiber in villages by 2025, settlement of 75% of running bills in 10 days, and setting up online eBill system are focused projects to expand digital infrastructure, improve internet access, increase payment touchpoints across hinterlands of India. Introduction of the digital currency will bring in security and transparency. We also, welcome the initiative of setting up 75 banking units in 75 districts. As 1.5L post offices come into the core banking fold, we hope that ATMs will become as ubiquitous as post boxes which will directly serve the financial inclusion narrative of India.”
Kinara Capital is a leading fintech NBFC serving MSME & Small Businesses.
Hardika Shah, Founder & CEO, Kinara Capital:
“Today’s Union Budget announcement acknowledged the MSME sector and the immense potential it holds for economic growth. The Budget has delivered on several of our expectations, and we look forward to seeing the implementation of these policy changes have a transformative effect on the growth of the MSME sector. While MSMEs have been on a strong recovery path since last year, many MSMEs are still rebuilding while adjusting to increased cost of raw materials.
Two important schemes that can enable last-mile lending are CGTSME and ECLGS - it was a good move to revamp the CGTSME and provide extension for ECLGS until March 2023. By increasing the credit cover and relaxing participating criteria by CGTMSE programs, especially to qualified NBFCs focused exclusively on last-mile financial inclusion of micro-MSMEs, the schemes have the potential to go a long way in enabling the growth of the MSMEs.”
“Union Budget 2022-23 has presented a comprehensive package of policy announcements aimed at supporting the recovery of MSME. Aside from the critical announcements about the extension of the ECLGS scheme and the revamp of the CGTMSE program, along with the infusion of additional funds, the government’s focus on RAMP is also commendable, as it will define the path to sustainable and responsible development for the sector. We also look forward to the interlinking of MSMEs formalization and compliance platforms, as this stands to facilitate operability, therefore improving entrepreneurial opportunities in the sector. The digital focus of the Budget, with support for the digital ecosystem and payment platforms, also bodes well for small businesses, as we foresee the future of the sector being tech-led.”
“We are happy to see that the Union Budget indicates the government’s emphasis on promoting emerging deep technologies and the digital economy by amplifying the digital transformation currently unfolding in India at rural and urban levels. Promoting fintech solutions, particularly linking existing infra such as post offices and banks for money transfer and setting up 75 distinct digital banking units, will simplify transactions for individuals and rural businesses. Rolling out 5G nationwide by 2025 will democratize tech access for a large number of Indians which will lead to skill-building, job opportunities, and improved mobility for many.”
