The domestic forging industry said
the Union Budget 2022-23 is focusing on investing more in infrastructure and
renewable energy, that will indirectly support employment generation. The
industry said the Union Budget 2022-23 does not offer much for the automotive
sector. Vikas Bajaj, president of the Association of Indian Forging Industry (AIFI),
said that, apart from encouraging EVs (electric vehicles) by creating a
battery-swapping strategy to overcome EV charging infrastructure, he believes
there is not much in the Budget to support the auto sector as was expected.
Also, not much has changed in the
direct tax rates for corporates as well as individuals, except incentives for
start-ups by extension of timeline for the start of production under Section
115BAB of the Income Tax Act, he said. He added that, this Budget focuses on
investing more on infrastructure and renewable energy, which will indirectly
support employment generation.
The domestic forging industry, which
is second-largest in the world, comprises 85 per cent of the MSME sector and
primarily caters to the automotive industry, which accounts for 60-70 per cent
of the forging production. It employs over three lakh people directly and an
equal number of people indirectly. In addition, he said the government has
focused on strengthening the logistics sector, digital education and health
infrastructure, which is a welcome move. Some industries, such as jewellery,
have benefited from reduced customs duties on precious stones and other
commodities, according to him.
Finally, to assist the MSME sector,
the Emergency Credit Line
Guarantee Scheme (ECLGS) scheme has been extended for medium and small
enterprises till March 31, 2023, in the Budget, he said.
Image Source: Google Images
Leave a Reply