Engineering sector to benefit as low customs duty on steel scrap to help MSMEs extended: MVIRDC World Trade Center

New Delhi, Feb 2 (KNN) The continuation of low customs duty on steel scrap will ensure cheap availability of raw material for MSMEs, especially in the engineering sector, said Dr. Vijay Kalantri Chairman, MVIRDC World Trade Center Mumbai commenting on the union budget 2022-23.

Showing appreciation for the increase in allocation for the ECLGS, he pointed out a bottleneck that only borrowers with a sound repayment record could access fresh funds under this scheme. 

“MSMEs who are struggling to repay loans because of poor economic conditions are unable to benefit from this scheme. Therefore, the government could provide incentives such as subsidies on raw material cost, temporary waiver of dues such as electricity charges, rent, loan interest cost etc. to MSMEs,” he added.

MVIRDC World Trade Center Mumbai called the union budget a revolutionary budget with thrust on futuristic sectors such as circular economy, green energy, digital banking and digital currency.

“The government has rightly allocated the increase in tax revenues to the much needed infrastructure sector, with special focus on transportation and transferring more resources to state governments,” he stated. 

Specifically, Dr. Kalantri welcomed increase in domestic procurement of defence equipment, launch of sovereign green bonds, introduction of e-passport and support to GIFT city.

Speaking about amendment in Customs tariff structure, Dr. Kalantri expressed hope that this will promote local manufacturing in sectors where India has competitive advantage and reduce import cost on raw materials and other manufacturing inputs.

“We are confident that such agreements will provide preferential market access for Indian exporters in advanced markets on par with our competitors such as Vietnam and Bangladesh,” Dr Kalantri opined. (KNN Bureau)