Budget 2022: What does Budget 2022 have for startups and MSMEs?

Overall, the current Budget 2022-23 is expected to bring a positive change for the MSMEs and other small industries.

In the Union Budget 2022-23, a bunch of expectations has been fulfilled. Healthcare and infrastructure appeared to be the main highlights of Budget 2022 while a huge investment has been allocated for the expansion of roadways & logistics networks.  

Budget 2022-23 also gave importance to the youth and startups. ECLGS cover (Emergency Credit Line Guarantee Scheme) has been increased by Rs 50,000 crore, with an aim to provide collateral-free loans to stressed-out MSMEs. 

The domestic MSMEs have excellently responded towards the Production Linked Incentive (PLI) Scheme for achieving the prime goal of Atmanirbhar Bharat as they were looking for government support in the tough times. 

The government believes that these sectors, with the help of the given scheme, have the potential to create more than 60 lakh new jobs along with additional production of Rs 30 lakh crore during the next five years, underpinning the Indian economy. 

A programme named, ‘One Station One Product’ announced in the Union Budget, is expected to accelerate local supply chains and also, impact small farmers & MSMEs to a great extent. The Budget also announced about 100 PM Shakti cargo terminals, which will develop in the next three years. Overall, the current Budget 2022-23 is expected to bring a positive change for the MSMEs and other small industries.