The proposals in the Union Budget 2022-23 for financial support for the digital payments ecosystem, boost to infrastructure and rural demand, and expanded assistance for the MSME sector have been welcomed by industry and analysts.
The financial support for the digital payment ecosystem, according to Gurjodhpal Singh, CEO of Tide India, is a welcome move that reaffirms the Government of India’s digital banking push. This push toward digitalisation will make way for more inclusion in the ecosystem. The emphasis on ‘ease of doing business’ is a great step forward because it will encourage more entrepreneurship in the economy.
“Fintechs will continue to play the role that we have been playing for the past couple of years now, and these policies will further strengthen our role in the ecosystem. Moreover, the decision to interlink MSME portals and added corpus is the much-needed support at this hour,” he said. Tide is a UK-based fintech offering business banking solutions.
Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank, said, “The Budget outturns are broadly in line with our expectations with the government continuing its focus on infrastructure and rural demand. As expected, the government has refrained from a sharp fiscal consolidation. While the fiscal expansion is expected to be pro-growth, the heavy supply is expected to worry the bond markets.”
Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research, said, “MSMEs have continued to be under stress due to the successive waves of the pandemic which have not only disrupted their operations but also impacted demand, particularly in services. The extension and expansion of the ECLGS scheme to Rs 5 lakh crore is a step in the right direction to provide further liquidity relief to the MSME sector. Further, plans for revamp of the CGTMSE credit guarantee fund have been announced to make it more effective.”
