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Increased capex will boost growth

February 02, 2022

Increased capex will boost growth
The Union Budget 2022-23 is focused on empowering India’s economy. With economic growth pegged at 9.2% in FY22, the budget announcements, if implemented well, can sustain the growth rate and increase employment in the long term.

India’s economic recuperation is proceeding to profit from the multiplier effects emanating from the sharp expansion in public investments from last year’s budget. A portion of the key development drivers are:
 
Business support 2.0
The finance minister announced that India will launch the next phase of Ease of Doing Business – EODB 2.0. This is a welcome move as India’s domestic business guidelines ecosystem has altogether changed somewhat recently and there is a need to focus on challenges unique to India from a prism of sustainable economic growth.

Help to MSMEs
Allowing a one-year moratorium extension for loans availed under the Emergency Credit Line Guarantee Scheme (ECLGS) with an increase in the limit to ₹5 lakh crore will ease current liquidity issues faced by the MSME sector, a critical contributor to the nation’s employment and GDP.

While the corporate tax was kept at the same level, the concessional rate of 15% was extended by one year for the newly incorporated manufacturing units.
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