For the last 3 years, the world has been plagued with the global outbreak of COVID-19. Leaving countries, like India, to witness the series of lockdowns that took place across the nation. These uncertain times forced many up and coming businesses to shut down or suffer from prolonged losses due to the scarcity of supply and demand.
With the unveiling of the Union Budget 2022, many self-employed individuals and businesses anticipated some relief from the Indian government. Fortunately, Finance Minister Nirmala Sitharaman’s announcements contained several provisions for MSMEs and start-ups. This will greatly aid in supporting businesses by providing them with some respite to recover from the ongoing pandemic.
This year, the centre has made several changes, revisions and provisions to provide more opportunities for relief to the self-employed and start-ups. From increasing the outlay of the fund for the Emergency Credit Line Guarantee Scheme (ECLGS) to encouraging entrepreneurship amongst the scheduled caste. This is owing to the 25% cut in the defence budget, which was re-routed towards start-ups, along with the availability of domestic manufacturers.
So, let’s take a look at all the new changes and support programs self-employed individuals can partake of in Sitharaman’s announcements.
All eligible start-ups will receive an extension of one more year for tax incentives.
The launch of EoDB 2.0 will reduce the burden of compliance on MSMEs to follow in line with “Minimum Government, Maximum Governance”.
The centre will focus on digital banked, payments and fintech, which will provide significantly more opportunities for MSMEs to improve liquidity.
The extension of ECLGS till the 23rd of March 2023, will greatly aid MSMEs with the necessary credit during crises caused by the ongoing pandemic.
The centre launched this competition under the Ambedkar Social Innovation and Incubation Mission (ASIIM) of the social justice department, which will fund over 1000 business entrepreneurs. This nation-level competition will provide entrepreneurial opportunities to the ambitious scheduled caste youth.
The government will revamp the CGTMSE to provide an additional credit of Rs. 2 lakh crore.
With a budget of Rs. 6,000 crores over a 5 year period, which will help them become part of global value chains by improving the fierce competitiveness of MSMEs.
Portals like E-SHRAM, UDYAM, National Career Services (NCS) and Atma Nirbhar Skilled Employer-Employee will be linked together. This will help formalise skills, recruitment services and credit assistance.
Sitharaman declared that start-ups that provide to the agricultural and rural sectors will receive a fund mobilized by the National Bank for Agricultural and Rural Development (NABARD).
An end-to-end platform to be launched to submit and manage bills for government contracts, with a commitment to pay 75% within 10 days for running bills.
The budget has provided MSMEs and start-ups with immense support to help them reach the 9% growth Sitharaman expects. Though, it’s important to keep track of the new policies that will be put out by sunrise sectors, which will likely benefit growing MSMEs and start-ups alike.
Whether you’re self-employed or looking to start your own venture, 2022 is the year of innovation with the government of India aiding such initiatives. So, go on and take advantage of the benefits provided by the Union Budget 2022 for MSMEs and start-ups.