Budget 2022-2023 Key Highlights Part 2

EODB and Legislations in the pipeline

• Phase 2 of Ease of Doing Business (EODB) to be launched, which will involve:
  • digitizing manual processes,
  • integrating central and state-level systems through IT bridges
  • standardization and removal of overlapping compliances.
• Policies / legislative changes to promote agro-forestry and private forestry will be rolled out.
• SEZ Act will be replaced with a new legislation for the development of enterprise and service hubs.
• Reforms underway to building byelaws, town planning schemes, transit-oriented development and transferable development rights.
• IBC to be amended to make resolution process more efficient and facilitate cross border insolvency resolution.
• Changes to expedite land and construction related approvals expected.
• Public policies / regulations, extended producers’ responsibilities framework to address cross cutting issues of infrastructure, reverse logistics, technology upgradation and integration in sectors such as electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste underway.

Initiatives towards Digitization

• An open platform, for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity, consent framework and universal access to health facilities.
• RBI to issue Digital Rupee (Central Bank Digital Currency), using blockchain and other technologies, starting 2022-23
• The financial support for digital payment ecosystem announced in the previous Budget will continue in 2022-23. There will also be a focus to promote use of payment platforms that are economical and user friendly.
• The scope of PARIVESH, a single window portal, to be expanded to provide information to the applicants. It will enable application tracking through Centralized Processing Centre-Green (CPC-Green).
• Centre for Processing Accelerated Corporate Exit (C-PACE) to be established to facilitate and speed up the voluntary winding-up of companies.
• e-Passports will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel.
• National Generic Document Registration System (NGDRS) to integrate with the ‘One-Nation One-Registration Software’ for uniform process for registration and ‘anywhere registration’ of deeds & documents.
• Focus on land records management by encouraging states to adopt a Unique Land Parcel Identification Number to facilitate IT-based management of records.

Opportunities for the Private Sector

• Private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service’ aimed at improving efficiency in the EV eco-system.
• Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model. An independent nodal umbrella body will be set up for meeting wide ranging testing and certification requirements.
• A scheme in PPP mode will be launched for delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of agri-value chain.
• Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services within 2022-23 by private telecom providers.

Impetus to Start-ups

• Startups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS).
• Defence R&D will be opened up for industry, start-ups and academia with 25 % of defence R&D budget earmarked.
• The period of incorporation for eligible start-ups who are provided tax incentives for three consecutive years out of ten years to be increased up to 31st day of March, 2023.

Impetus to MSMEs

• Emergency Credit Line Guarantee Scheme (ECLGS) extended to March 2023 and its guarantee cover will be expanded by INR 50,000 crore to total cover of INR 5 lakh crore.
• Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme to be revamped facilitating additional credit of INR 2 lakh crore for Micro and Small Enterprises and expand employment opportunities
• Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs. 6,000 crore over 5 years will be rolled out. This will help the MSME sector become more resilient, competitive and efficient.

This is part 2 of our budget highlights. For part 1 & 3, click on the link below:

Key Highlights of Union Budget 2022-23

Budget 2022-2023 Key Highlights Part 3 – Industry Specific Impact

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