Hospitality industry deeply disappointed in Budget 2022
Gurbaxish Singh Kohli, Vice President, Federation of Hotel & Restaurant Associations of India (FHRAI)
Though the Budget has been gravely disappointing, the extension of ECLGS with additional allocation to the crawling hospitality sector and provisioning an outlay of Rs.2 lakh crore through CGTMSE are the only relief measures provided as part of the Union Budget 2022-23. The special allocation through ECLGS will support the struggling sector to mitigate some of the pandemic-induced challenges and the CGTMSE scheme is expected to facilitate additional credit of Rs 2 lakh crore for micro small enterprises and expand employment opportunities.This move has come as a result of the multiple representations and extensive meetings FHRAI held with the authorities since the start of the pandemic. The Hon’ble FM acknowledged the massive losses incurred by the sector. However, this is just a drop in the ocean for a sector that has been severely battered. Given the massive damages that decimated the entire sector’s ecosystem, these measures are not adequate to bridge the losses and offer impetus to the hospitality and tourism industry. The number of meetings we held with the Finance Ministry and other ministries led us to believe that they were surely going to announce some sort of specific relief for the industry but it is a huge disappointment that it has not come through. We had requested the Hon’ble FM to allow domestic travel for individuals and corporates to be a deductible expense in their IT returns. Inclusion of Hotels and Tourism related sectors in the National Infrastructure Pipeline (NIP), Infrastructure status and Industry status for the Hospitality industry and allowing Input Tax Credit (ITC) for restaurants. These are equally crucial requirements for the hospitality industry. The industry has been requesting long-term credit facilities in view of the vulnerabilities and the time it would take for businesses to resume normalcy.
'The Gati Shakti scheme's focus on sustainable growth and digitisation looks extremely promising'
Mr.Kushal Nahata, CEO & Co-founder, FarEye
We welcome the positive steps the government has taken for strengthening and further developing the logistics sector under the PM Gati Shakti plan. Rs 20,000 crore allocated for developing transportation shows that the government is focused on building a robust logistics infrastructure in the country.The expansion of the national highways network, implementation of multimodal logistics parks and development of 100 new cargo terminals will facilitate swift movement of goods, improve pan-India connectivity and reduce logistics costs.The Gati Shakti scheme's focus on sustainable growth and digitisation looks extremely promising. The proposed unified logistics interface platform will accelerate the digitisation of the logistics sector in the country. It will help reduce paperwork and aid better logistics and supply chain management. Indian Railways' One Station One Product plan to provide capable logistics services to farmers and MSMEs will ensure that local businesses overcome the existing bottlenecks in the supply chain.
Key takeaways from FM Nirmala Sitharaman's Union Budget speech
Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2022, the blueprint for 'amrit kal' of the next 25 years, in Parliament, ahead of elections in five states.
In the Union Budget 2022, Finance Minister Nirmala Sitharaman made a slew of announcements outlining the economic growth for India over the next 25 years. Here's what the FMCG sector experts are saying about the Union Budget 2022. Stay tuned for updates.