Budget 2020: Govt should allocate funds for boosting exports, empower women, says industry

Budget 2020: The Modi government should allocate more funds to boost exports and at the same time, look to empower women by covering them in its initiatives around interest subvention on loans to SHGs, believe industry experts. Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital said that with a new Foreign Trade Policy (FTP) around the corner, the government is expected to allocate appropriate funds and resources for its implementation.

"With the new Foreign Trade Policy (FTP) around the corner, expectations are that the Budget will allocate appropriate funds and resources for its implementation and pave a way for boosting exports from the country. We hope that the government revisits its export promotion policies and fine tune them to support the SMEs," he said.

Mukewar added that key expectations from the FTP also include more schemes especially for tech upgradation for small manufacturers & exporters as it would help them get integrated within the global value chains.

"The government could also look at focused schemes for helping SMEs research and develop/improve the quality of products to become more competitive globally. Additionally, we expect dedicated investments in logistics and warehousing infrastructure for seamless movement of goods along with assistance for easier access to credit as well as laws pertaining to IPRs," he added.

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Anil Kumar Gupta, Partner MSC lauded the government for its focus on women and SHGs. He said that the overdraft for all women SHG member having PMJDY account in Budget 2019 can increase banking penetration among women and empower them. He hopes more announcements on the same lines in the upcoming budget.

"The government’s initiatives around interest subvention on loans to SHGs would ensure that more and more women are covered by formal financial institution through affordable credit, an important aspect for better financial health in long run. July 2019 budget also announced availability of loan upto Rs. 1 lakh to one woman in every SHG under MUDRA which has the ability to disrupt the rural market with entrepreneurship. A quick back of the envelope calculation would peg this requirement to around 40,000 crore (80 lakh group with average loan size of Rs. 50,000/-)," Gupta said.

The Union Budget will be presented by Finance Minister Nirmala Sitharaman on February 1. You can catch all updates on #Budget2020ZEE.