New Delhi: The Indian hospitality and travel industries have benefited from Finance Minister Nirmala Sitharaman's Budget 2022.
The FM announced a general increase in the Emergency Credit Line Guarantee Scheme (ECLGS), with a focus on hospitality and allied services, particularly micro and small businesses (MSMEs).
"The hotel and MSME industries have yet to regain pre-pandemic business levels," Sitharaman said.
"As a result, the ECLGS will be extended until March 2023." Its guarantee cover would be increased by 50,000 crore, bringing the total protection to 5 lakh crore," she said. She stated that the hospitality industry will be given special attention.
“The extension of the ECLGS scheme by Rs. 5,000 crores for the hospitality and related sectors, announced by the Finance Minister Nirmala Sitharaman is a welcoming move. It’s good to see the mention of the hospitality and related sector in this year’s budget. The past few years have been tumultuous for the hospitality segment and I am hopeful that this initiative gives the industry a much-needed boost. It would be right to say, that it’s a good start and I look forward to a seamless allocation of the sanctioned amount to the people and segments who need it the most.” said Masterchef Extraordinaire and Padma Shri recipient Sanjeev Kapoor.
“The Budget, presented by Finance Minister Nirmala Sitharaman, is progressive and growth-oriented. I see it in three words - innovation, inclusivity and infrastructure. It will help in India’s progress towards its aspiration of a $ 5 trillion economy. The focus on start-ups, which have emerged as drivers of growth for our economy, was evident. The extension of incorporation period for eligible start-ups will certainly give a boost to this segment. Hospitality services by the small & medium sector are yet to bounce back, and the Finance Minister’s decision to extend the ECGL service for this sector up to March 2023 expanding the cover by ₹50,000 cr is a welcome move.
The budget also puts a huge focus on infrastructure and logistics which is a welcome development and ensures that the economy continues to witness not only revival but also show robust growth in the long run. Steps such as e-passport issuance will strengthen overseas travel and expansion of highway network by 25000km and contracts of 8 ropeways under PM Gati Shakti to develop seven engines will also benefit domestic travel.
Relief to the small businesses and startups through the recent future (Amrit Kaal) is reassuring and these, coupled with steps taken towards digitalization (Drone Shakti, Digital University, Digital Banking and Payments, EVs, Launch of 5G) and Web3.0 (Digital Rupee) will provide new opportunities for young emerging India. Focus on upskilling employees and allocating resources to invest in new technology is the need of the hour and we are happy to be partners in this initiative,” said Ritesh Agarwal, Founder & Group CEO, OYO.
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