MSMEs growth is expected from the Budget 2022: A&M Industry

Budget 2022 creative Media Infoline

Amidst the third wave of the pandemic, Nirmala Sitharaman, Union Finance Minister shall be presenting Union Budget 2022-2023 on February 1st. Last year has seen the businesses and organizations paving their way through the “new normal”. There is also a drastic change in consumer behavior including digital dependency that witnessed a remarkable surge. So Budget 2022 is expected to build a steady growth across the industries.

With the uptick in e-commerce activities, most brands are dependent on technology-led solutions to transform their businesses, says Shams Jasani, CEO, Wunderman Thompson South Asia.

“We are hopeful that this year’s union budget will be a growth-oriented one, aimed at providing tax relief to boost consumer demand, which in turn can propel brands to increase spending across media in the coming year. Our expectations from the upcoming budget are ease of doing business for MSMEs and startups, scaling investment in digitization, and fostering better internet connectivity infrastructure to ensure last-mile connectivity with a specific focus on rural areas that will help drive growth,“ says Mr. Jasani.

He further adds, “We hope that this year’s budget will continue to focus on business recovery and sustainable growth with necessary budgetary allocations and tax incentives that will give brands that much-needed impetus to increase marketing spends for their businesses.”

Among the many deep impacts of the pandemic is that more cash has gotten out of people’s hands via greater expenses for healthcare, WFH set-ups, remote education for kids, and on top of it, dealing with the effects of a year of further price inflation and, for the salaried class, no pay raises (and in many cases, pay cuts). This means that people will look for more cash in hand, whether through higher standard deduction rates or lower tax rates or other sops, says Narayan Devanathan, Chief Client Officer, Dentsu India.

“People will look for more cash/sources of livelihood closer to home. The migrant crisis of 2020 showcased a great opportunity to create economic hubs closer to hubs of labour availability; whether by backing MSME growth or macro industrial growth, investments in skilling and establishment of socio-economic hubs closer to the source of labour rather than near the source of capital will be key to leveraging India’s workforce dividend.” Adds Mr. Narayan.

He further hopes for the A&M industry, with digital set to grow to well over a third of the overall advertising spends in the country by 2023, such distributed and multiple economic engines will mean good news in terms of overall growth. Investments in growing addressable opportunities via voice, video, and social commerce will be critical in moving beyond the world of search and text-based content & commerce, bringing both production and consumption within the reach of India’s vast multi-lingual audiences and truly growing the middle class beyond narrow, urban, English-aware cohorts.

Speaking about the Pre-Budget expectations, Ms. Ambika Sharma, Founder & MD, Pulp Strategy says: “The union budget 2022 is important for the economic growth and exit from the sluggish economy of the last year, media is deeply connected to the overall growth across sectors. While there will be a sector-wise strategy in the budget for the digital transformation to pick up momentum a solution to the semiconductor shortage should be an area of focus. Semiconductors are necessary for growth and supply for all electronics from Automobile ECUs to POS machines. In December the cabinet approved a 76000, Crore scheme for semiconductor and display manufacturing, it will be important to further boost this initiative to cover the current deficit and then move on to export.”

“Further improve the digital India initiative with stronger policies and allocations in this union budget towards digital adoption of technology, strengthening its commitment to the digital India initiative. Small initiatives like Eg: ensuring all access to technology via SAAS providers in India is in INR and covered under GST and completely doing away with the need for an equalization levy could be covered by the union budget. This will Improve the compliance as well as ease of business for small businesses.

Initiatives to improve the access of finance to MSMEs will be important. The last 2 years have been difficult and initiatives like greater coverage by the TReDS platform, improvement in the response rate of the MSME grievance cell, simplification of access to benefits to exports of services and increased economic incentives for exports of services will provide a boost to the sector. There is a need to improve the organized address of the services sector treating its needs independently of manufacturing.”

Himanshu Arya, Founder, and CEO- Grapes says: The Indian advertising industry is unfolding at a tremendous pace. It is projected to be the second-fastest-growing advertising market in the Asia-Pacific region. The Indian advertising industry is poised to reach up to 700 billion rupees by 2022 from 564 billion rupees in 2020. Despite the pandemic, the industry has witnessed substantial growth, and this all happened on the back of digitalization. A&M advertising has fairly contributed to the economy and is on an evolving stage due to the rapid expansion in digital media.

With union budget around the corner, I think it’s time the advertising industry should get its due share. The government should strive and encourage innovation and entrepreneurship in the digital media and the ad-tech sector. India has the brightest and sharpest young minds. We should create an atmosphere that is more conducive for the blooming of start-ups, and at the same time, incentivize investments and funding. The government should bring some stimulus packages and formulate policies focusing on digital infrastructure that bolsters the advertising industry. I hope that the forthcoming budget will only accelerate the wheel of the Indian economy.”

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