The Union Budget for 2022-23 has extended the Emergency Credit Line Guarantee scheme (ECLGS) up to March 2023 and its cover will be expanded by Rs. 50000 crore to total cover of Rs. 5 lakh crore. “This is a very positive step as it will provide the much-needed additional credit to the MSMEs,” said Shri Manoj Patodia, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL).
Shri Manoj Patodia, Chairman – TEXPROCIL
The Budget has also extended the last date for commencement of production for newly incorporated domestic manufacturing companies by one year from March 31, 2023 to March 31, 2024 to become eligible for concessional tax of 15%. Further, for eligible start-ups established before 31.3.2022, a tax incentive has been provided for three consecutive years out of ten years from the date of incorporation. The Budget has extended the period of incorporation for the eligible start-ups by one more year i.e., up to March 31, 2023. The Budget has also proposed to replace the Special Economic Zones Act with a new legislation that will enable states to become partners in Development of Enterprise and Service hubs. All these are steps in the right direction as they will enable our country to become Atmanirbhar and encourage “Make in India“, according to Shri Patodia.
However, Shri Manoj Patodia expressed his concern that Made ups sector that contribute significantly towards exports has been left out of the facility of duty free imports of specified goods by bonafide exporters that has been extended to the exporters of apparel, handicraft and leather goods in the Budget.
The Chairman, TEXPROCIL also appealed to the Government to re-consider the Customs duty imposed on Cotton and its abolition.
For more information, please visit, www.texprocil.org.