- Quantitively, the budget is in line with the on-going economic reforms: Rajiv Gandhi, Chairman, FICCI Gujarat Council
- The setting up of three centres of excellence for AI in top educational institutions will boost research and help in developing cutting-edge applications in agriculture, health, and sustainable cities: Dr Sandeep Vasant, Registrar, Navrachana University
- The setting of Unity Mall in states for promotion of GI products and handicraft goods will benefit artisans, especially women: Shraddha Soparkar, Founder of Madhuram Charitable Trust
NE BUSINESS BUREAU
NEW DELHI, FEB 1
Eyeing the ensuing Assembly polls in 9 states this year and the Lok Sabha elections next year, Union Finance Minister Nirmala Sitharaman presented the last full-fledged Union Budget 2023 of the Modi government, with a slew of announcements, including revision of income tax slabs, reduction of certain customs duty and sops for agriculture.
The Budget Session of Parliament began on Tuesday and the first part will conclude on February 13. The Parliament will re-convene on 12 March for the second part of the Budget Session that will conclude on 6 April.
Here are the reactions to the Budget by various business chambers, industry captains from various sectors:
The Federation of Indian Chambers of Commerce & Industry praises the budget
“The Union Budget for 2023-24 comes across as extremely balanced and progressive. What strikes out most is that there is primacy accorded to growth, which is exactly what we wanted to see. There is clearly a focus on agriculture sector with significant outlays, and a focus on urbanisation and digitalisation,” said FICCI president Subhrakant Panda.
This is a balanced budget that focuses on growth and maintains stability: Mr Pranav N Sayta, Chair, FICCI Taxation Committee & Partner & National Leader, International Tax & Transaction Services (ITTS), @EY_India.#BudgetWithFICCI pic.twitter.com/H5f4i5DDYj
— FICCI (@ficci_india) February 1, 2023
“We are delighted to see the substantial 33% hike in the capex outlay at 10 lakh crore which is the highest ever, amount ton 3.3% of GDP. We feel that bolstered by these numbers, this will be a year of transition from being substantially government-led capex to the private sectors also coming in to play a noticeable role.”
Rajiv Gandhi, Chairman, FICCI Gujarat Council
“Quantitively, the budget is in line with the on-going economic reforms. The middle class will have more disposable income, propelling more expenditure by them. The proposed spend on infrastructure will further propel growth. Qualitatively, there is even more in the budget, showing the government’s stride towards getting reforms which will change the thinking of citizens, getting more transparency into the system, thereby fortifying the path towards making India a superpower as well as self-reliant.”
Announcement on MSMEs a welcome move: CII
The Confederation of Indian Industry called it a balanced budget.
“This is a budget that balances growth with fiscal prudence. Sticking to the fiscal deficit target of 6.4% and aiming to go below 6%, to 5.9% next year, is a welcome balance. There are a number of other initiatives as well – continuing the credit guarantee scheme for MSMEs expanding that by Rs. 2 lakh crore. As growth comes back, MSMEs will find this a significant support,” said CII President Sanjiv Bajaj.
"Delighted with this #budget. It makes sure that continuity takes place and also the sections of society that needed to be taken care of have been very well taken care of."-R Dinesh, President Designate, CII #CII4Budget2023 #UnionBudget2023 #Budget2023 @nsitharaman @FinMinIndia pic.twitter.com/zokDpw61qo
— Confederation of Indian Industry (@FollowCII) February 1, 2023
Investments in India Stack will help India Inc, especially startups: Deloitte Indian
NSN Murthy, Partner, Deloitte India said that investments for development of digital public infrastructure and goods will help startups build assets and products.
“Investments in India Stack for development of Digital Public Infrastructure & Goods in sectors that drive social development like Agriculture, Healthcare & Education as mentioned in the budget speech by the Hon’ble Finance Minister, we believe not only are going to accelerate transformation in these sectors but also will help Indian companies especially start-ups to build assets & products on these stacks and take it to the globe for service delivery,” he said.
Anil Agarwal, Chairman, Vedanta Ltd
“This Budget is one of the best budgets ever, truly inclusive and addresses the aspirations of every section of society. It empowers India’s 1.4 billion people as drivers of the India story. I compliment the PM and FM for the long term vision that was laid out in the Budget speech as well as the many progressive announcements, like increased outlay for capital expenditure, incentives for the start-ups and MSMEs, green energy, a lower tax for the middle class and boost to tourism which will create massive jobs and reinforce India’s position as the fastest growing major economy in the world.”
Dr Jeewan Prakash Gupta, Chair of Environment and Climate Committee, PHDCCI
“To tackle the air pollution in North India, the Government should consider incentivizing the purchase and provision of Bio Decomposer Capsules and other equipment by the corporate sector since the small and marginal farmers may not be able to afford such innovative solutions.”
Sakshi Gupta, Principal Economist, HDFC Bank, Mumbai
“The budget continues to focus on capex spending as the engine of growth while also paying heed to fiscal consolidation. The lower-than-expected borrowing number for FY24 is likely to bring in some relief for the bond market, although the absolute borrowings continues to remain high and is likely to put a floor for bond yields in FY24. Moreover, we remain cautious over the government’s ability to finance the fiscal deficit through the increased reliance on small savings despite the new schemes introduced as bank deposit rates rise. The consumption boost through income tax slab adjustment is a big positive and bodes well for overall growth and domestic demand in a time when global risks remain high.”
Dinanath Dubhashi, MD & CEO, L&T Finance Holdings Ltd
“It’s a well-balanced Budget that has finely pushed the capex spending without compromising the fiscal discipline. The measures oriented towards improving the purchasing power of households and enhancing the prosperity of agriculture and allied sectors augur well for the business models of retail-focused NBFCs. A good control over market borrowings has avoided any negative news for the bond markets. In the absence of any significant global shock, today’s Budget has every potential to bring out a broad-based revival in the Indian economy”.
Ramnath Krishnan, Managing Director & Group CEO, ICRA
“The Union Budget has provided a much larger-than-expected boost to growth-inducing capital spending, while at the same time managing a fair degree of fiscal consolidation. The Budget proposals are likely to enhance business, rural and tax payer sentiment and consolidate India’s growth prospects in a gloomy global setting. With the Government’s borrowings similar to market expectations, the bond yields are likely to stabilise, which would also support the private sector capex plans.”
Harsh Vardhan Patodia, President, CREDAI National
“Through the Union budget 23 – 24, the Government continues to focus on the empowerment of youth, women, OBCs & farmers. With a keen focus on the future of the country with a growth-oriented budget, we applaud the FM’s vision of enabling an inclusive and sustainable development growth chart for infrastructure. An increased capital outlay for a third year in a row to INR 10 Lakh crores amounting to 3.3% of the GDP, a hike of 66% to over 79,000 crores for PM Awas Yojana and the 9000 Cr Credit Guarantee Scheme for MSMEs, will have a positive multiplier effect on economic growth and help realize the PM’s vision for ‘Housing for All’. Continuing its focus on urban planning reforms to develop sustainable cities for tomorrow, the allocation of INR 10,000 crores to the NHB for infrastructure development, the highest ever railway outlay at ₹2.4 lakh crore and increased regional connectivity through 50 more additional airports, helipads, water aero drones, advanced landing grounds will also boost affordable regional connectivity and will add impetus for infrastructure development, especially in tier-2 and 3 cities which will help the Indian economy to remain less impacted by a global slowdown.”
Dr Sandeep Vasant, Registrar, Navrachana University
“The budget prioritises inclusive development and youth power. In education, there are several welcome announcements. The setting up of a National Digital Library will facilitate the availability of quality books across geographies, languages and levels. The development of District Institutes of Education and Training will transform teachers’ training through innovative pedagogy. The setting up of three centres of excellence for AI in top educational institutions will boost research and help in developing cutting-edge applications in agriculture, health, and sustainable cities. There is also a clear focus on promoting startups and entrepreneurship.”
Karan Rathore, Vice Chairman, Services Export Promotion Council set up by Ministry of Commerce and Industry
“Travel and tourism is one of the most crucial sectors that contributes to the GDP of our country. The budget will recognize 50 tourist destinations through challenge mode to be developed as a whole package for domestic and international tourism. That will ensure the true potential of tourism for both overseas and domestic tourists can be tapped. All relevant aspects such as high standards for food streets, physical connectivity, virtual connectivity, tourist guides, and tourist security, would be made available on an app to enhance the tourist experience. Every destination will be developed as a complete package. This will not only support the tourism industry but also offer huge opportunities for jobs and entrepreneurship for youth in particular.”
Shraddha Soparkar, Founder of Madhuram Charitable Trust
“The budget lays a strong foundation for building a new India in the next 25 years. It strikes an excellent balance between the need for growth and giving an adequate push to rural welfare and agriculture. The setting of Unity Mall in states for promotion of GI products and handicraft goods will benefit artisans, especially women. The expansion of skill development schemes will improve the employability of youths. The FM has given adequate attention to healthcare, education, and housing, and has also left more money in the hands of taxpayers by revising personal income tax slabs.”
Balanced but tepid for realty: Anuj Puri, Chairman – ANAROCK Group
“The new measures announced in the Union Budget 2023-24 may certainly help unleash Indian economy’s potential. However, from a real estate point of view, there were no major direct announcements that could be seen as immediate booster shots. The enhanced allocation for PM Awaas Yojana by 66% to over INR 79,000 crores is certainly a boost for affordable housing, which was flagging due to increased input costs and also because the buyers in this segment, mostly from the unorganized sector, were still reeling under the impact of the pandemic. It is another step towards the government’s Housing for All mission.”
Prabhat Chaturvedi, CEO, Netafim Agricultural Financing Agency Pvt. Ltd.
“Today’s Union Budget announcement is a testimony to policymaker’s intent of touching every aspect of the economy. Formation of National Financial Information Registry to serve as a central repository of financial and ancillary information is an excellent decision. It is a smart step and will aid in solving the problem of lending, foster financial stability and encourage financial inclusion in the country by aggregated data. It will support smaller NBFCS to bring cost-effective credit underwritings, particularly focused on MSMEs. It will also help to conclude End-to-end digital processing efficiently with standard checks and balances within prompt turnaround time. The Vivad Se Vishwas initiative will boost the confidence of entities dealing with MSMEs as it covers the performance risk. The announced measure will have a butterfly effect on the credit sector as well as will provide cushion to create an engine of growth.”
