The Union Budget has set aside ₹15,700 crore for micro, small and medium enterprises (MSMEs) across the country, which is a positive step. However, the MSMEs had expected that the government would come out with relief measures or another package for their revival in the wake of the devastation caused by COVID-19, said M. Khalid of the Kerala State Small Industries Association here on Monday.
He said there are around 6.35 crore MSMEs across India. They account for 11 crore jobs in the country, contribute 48% to the export volume and constitute 30% of the GDP. Considering these factors, the MSMEs should have been supported more generously, he said.
At the same time, the allocations for National Highway development in Kerala and the provision of nearly ₹2,000 crore for the Kochi metro extension will liven up the market, he added.
Hospitality industry veteran Jose Dominic said the sector, which reeled under the impact of COVID-19 in 2020 and is looking to recover, had expected some bold new steps in the post-COVID-19 period. However, that has not happened in the Budget.
There was also a hope that there would be a GST holiday for at least for a year for the hospitality and travel industry, to give them a boost, considering their role in the revival of the economy, he said.
Mr. Dominic, however, said the steps proposed in the Budget such as improvement of national highways, proper handling of waste through more intense urban Swachh Bharat campaign and Jal Jeevan Mission for water supply will go a long way in improving the ground facilities, which in turn will give a big boost to the travel and tourism industry.
Health sector happy
Azad Moopen, founder chairman and managing director, Aster DM Healthcare, said the Budget had seen a “phenomenal increase in outlay for the health-care sector” with focus on key issues. “We are glad that the total outlay for health and well-being has increased by 137%, standing at ₹2,23,846 crore,” he said in a statement here.
It is encouraging to see the shift in focus to prioritise preventive care and well-being over just sick care.
India has fared well in keeping the COVID-19 death rate down and active case rate one of the lowest in the world. India is also emerging as a supplier of vaccines to many countries. With provisions for vaccination being made available to the population at large at the earliest, the country can move beyond the pandemic to focus on the future, Dr. Moopen added.
The Budget will help propel Indian economy even amidst the global pandemic, said Yusuffali M.A., NRI businessman and chairman of the Lulu Group. The health sector has substantial allocation. The spending on vaccination is a big morale booster for the country, he added.
He also welcomed, as a Non-Resident Indian businessman, “some very specific steps being taken to tap NRI investments”. Announcement of “One Person Companies” or OPCs in India is going to be a game changer especially for the start-up sector and new-gen businesses, he added.
