The union budget for 2023 is here. What does this year’s union budget have for MSMEs and exporters? We walk you through some of the major fiscal outlay provisions and opportunities for MSMEs and exporters here. 

Some of the key opportunities for MSMEs and exporters from the budget include: 

1. Allocation of Fiscal Outlay for MSMEs in the Union Budget for 2023 

The government has proposed an allocation of Rs. 15,700 crores for MSMEs in 2023. 

The outlay in this year’s union budget is a significant increase from the previous year. One of the highlights of this increased outlay is the sharp surge in capex.  

2. Ease of Doing Business and Simplification of Compliance for MSMEs 

The union budget for 2023 has several measures for simplifying compliance for MSMEs and exporters. Of these, the simplification of the Goods and Services tax (GST) regime is a significant step towards augmenting the ease of doing business. 

Not only will it lead to a reduced tax burden, but is also likely to reduce staff hour engagements into maintaining data trails manually and filing for input tax credits.  

3. Corpus of INR 5000 Crore for MSMEs to Enable Access to Credit 

One of the biggest pain points for Indian exporters is the short shelf life of export opportunities. The global market is getting flatter and customers have a plethora of choices for importing goods.  

Indian exporters, especially MSMEs need credit on-demand to purchase raw materials and intermediate goods to process purchase orders. There is a definite mandate for agile supply chain finance for exporters and MSMEs.  

To solve this pain point, the union budget 2023 has a provision for a corpus of Rs 5000 crore. The corpus will be uses to provide collateral-free debt to MSME exporters and MSMEs that are active in the domestic trade circuit. 

4. Export Promotion Measures to Integrate MSMEs with the Global Supply Chain 

The honorable FM has introduced several measures for export promotion in the union budget for 2023. Of the several measures, the one that deserves special mention is the setting up of a corpus worth Rs 20,000 crore to support export-oriented MSMEs.  

5. Infrastructure Development to Boost MSMEs and Exporters 

The government has proposed several measures to improve infrastructure in the union budget for 2023 to promote MSMEs and exporters.  These include the development of local industrial parks and clusters. Such clusters and manufacturing zones will provide MSMEs with access to basic amenities like real estate, electricity, and logistical and digital connectivity. 

Learn about the detailed analysis of opportunities and procurement and supply chain recommendations for CEOs, CFOs, CTOs, and CPOs of MSMEs and exporters in the e-book: “Union Budget 2023; The Decision Maker’s Vantage Point”.   

The Union Budget of India for 2023 is here. The honorable FM has announced several measures which are aimed at boosting infrastructure development in the country. We walk you through some of the opportunities for infrastructure EPC companies, which are as follows: 

1. Increased Capex Allocation for Building India’s Infrastructure  

The highlight of this year’s union budget is the mega capex push worth INR 5.54 lakh crores. The capex allocation represents an 11% hike over last year.   

The capital expenditure will provide opportunities to EPC companies to participate in new infra projects and secure contracts under the auspices of the National Infrastructure Pipeline. 

2. Focus on Infrastructure Development in Tier 3 Cities and Rural Areas 

The government has announced several measures to enhance rural infrastructure, including the creation of a rural infrastructure development fund and the development of rural industrial clusters. This presents opportunities for EPC companies to participate in projects aimed at improving rural infrastructure. 

3. Outlay of INR 2.5 Lakh Crore for the Development of Roads and Highways 

The union budget has emphasized the importance of road and highway development, with a target to construct 40 km of roads per day. The outlay of INR 2.5 lakh crores for roads and highways is expected to create opportunities worth INR 1.8 lakh crores for project developers and those worth INR 0.7 lakh crores for MRO solutions providers. 

4. Expansion of Port & Terminal Infrastructure Under the Union Budget 

India already has an active and operational policy framework for the development of ports and terminals called the “Bharatmala Scheme”. This year’s union budget makes a capex outlay of INR 1608 crores for the development of ports & terminals. This presents opportunities for infrastructure companies to participate in port development projects. 

5. Climate Action and Shift Towards Green Manufacturing and Renewable Energy 

The union budget for 2023 marks the beginning of India’s pivot towards green manufacturing and renewable energy. The outlay on green hydrogen alone is INR 35,000 crores. This presents opportunities for infrastructure companies to participate in renewable energy projects. 

Overall, the Union Budget of India for 2023 presents a range of opportunities for infrastructure companies looking to participate in the development of physical infrastructure in the country. 

Explore the detailed analysis of opportunities in the National Infrastructure Pipeline and procurement and supply chain recommendations for CEOs, CFOs, CTOs, and CPOs of EPC project developers and sub-contractors in the e-book: “Union Budget 2023; The Decision Maker’s Vantage Point”.