The trade and industries sector on Tuesday welcomed the Union Budget 2022-23, particularly the thrust on logistics development, but hoped that spending will also include sufficient fund allocation for projects resulting in reduction in logistics cost to around 8% from the present 14%.
In his remarks, Kanara Chamber of Industry and Commerce (KCCI) President Shashidhar Pai Maroor also hoped that focus on logistics development will include better connectivity between Bengaluru and Mangaluru. Referring to huge logistics cost, he said that reduction of cost by the industry and the government will improve business profitability making India competitive in international markets.
Proposals for four multi-modal logistics parks in public-private partnership mode, a hundred Gati Shakti Cargo Terminals, National Highway expansion by 25,000 km in 2022-23 and unified logistics interface programme just-in-time inventorymanagement are a welcome move, he said.
KCCI also welcomes the various e-initiatives proposed in the Budget, Mr. Maroor added.
District Small Industries Association President Vishal Salian welcomed the proposal for cap on all long-term capital gains (LTCG) and extension of emergency credit line guarantee scheme (ECLGS) for the MSME sector for a year. The Government, however, should ensure all banks implement ECLGS and provide facility to the MSME sector.
Stating that the PM GATI Shakti National Master Plan incorporating technology will boost infrastructure and connectivity, CII Mangalore District Chairman Jeevan Saldanha said that the Mangaluru-Bengaluru railway line should be realigned with electrification for faster movement of goods and passengers under the GATI Shakti scheme. The Hassan-Mangaluru National Highway should also be included in it.
Legalising cryptocurrencies as an asset class by taxing Digital Assets at 30% as compared to earlier attempts to ban it is a welcome move, especially for the young investors who prefer investments in Digital Assets. While education outlay enhancement by 18% is welcome, reduction on spending on rural development is not so, Mr. Saldanha said.
MSMEs, hospitality, travel and tourism sectors should have been given more push, he added.
Kanara Industries Association President Isaac Vas also welcomed the budget proposals and said that extension of ECLG Scheme will help MSMEs. Revamping of the Credit Guarantee Trust for MSMEs Scheme and rolling out of a programme to Raise and Accelerate MSME Performance (RAMP) and focus on skill development to provide suitable talent to MSMEs should go a long way in bringing out MSMEs into a quick revival mode.
