Union Budget 2022 – Neeraj Dhawan, Managing Director, Experian India

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National, February 03, 2022: The Union Budget focused on three major growth factors namely maintaining an all-inclusive approach by focusing on macroeconomic and microeconomic growth, promoting digital economy and fintech, and creating a cycle of investment between public and private capital. Taking a cue from the Prime Minister’s term ‘Amrit Kaal’ which is the period of the next 25 years, the Finance Minister laid down the economic framework.

The government’s continuous focus on digital and financial inclusivity has been reiterated this year with the announcement of the launch of the auction of the 5G spectrum, setting up of 75 digital banking units across rural India, connecting 150,000 post offices to the core banking system and the new digital rupee that will be launched by the Reserve Bank of India.  These are welcoming announcements by the Finance Minister in the Union Budget 2022 These are definitely welcoming initiatives that will benefit both consumers and the MSME segment as they increase their digital and financial activities which in turn will help them build a strong credit history for quick and easy access to credit.

Finance Minister’s announcements of the interlinking of the Udyam, e-Shram, National Career Service (NCS), and Atmanirbhar Skilled Employee Employer Mapping (ASEEM) portals will for sure help in credit facilitation. The extension of the date and an increase in the guarantee cover Emergency Credit Line Guarantee Scheme (ECLGS) announced in 2020 and the CGTMSE or the Credit Guarantee Trust for Micro and Small Enterprises Scheme that will be revamped with the infusion of funds is expected to help MSMEs largely.

As mentioned during the budget speech, India is expected to have a strong growth with the GDP rate at 9.2% in the coming year. With improvement in infrastructure, support to MSMEs and entrepreneurs, a continued thrust toward leveraging digital technology, and creating an all-inclusive growth strategy, the Finance Minister has delivered a Budget that will infuse optimism in an economy, a definite need of the other with the economy marred by the impact of the pandemic. The budget has definitely focused on growth providing the required impetus to the economy. With growth and further increased employment, we the players in the credit industry are optimistic of expecting a surge in the demand of loans to fuel personal finance and business growth.