CXOs, founders and finfluencers answer the big question and help us understand how the Union Budget impacts businesses, industries and people
Finance minister Nirmala Sitharaman addresses the members of the media during a post budget news conference in New Delhi on February 1, 2023. (Photo by Sajjad HUSSAIN / AFP)
Finance Minister Nirmala Sitharaman presented the 2023 Union Budget on February 1 and in her post-budget press conference the minister said women empowerment, emphasis on tourism, empowerment of Vishakarmas (artisans) and green growth are the four key focus areas of this year’s budget. While taxpayers were overjoyed with the Rs7 lakh tax free income limit, businesses across sectors did a deep dive of the budget that went beyond what got cheaper and what became more expensive. Read on.
What is particularly pleasing about the Budget is the increase in capex, which is Rs 10 lakh crore, that highlights 3.3 per cent of the GDP. The other aspect which is commendable is that the government will continue to provide 1.3 trillion in loans to states in order to facilitate longer-term investments.
A higher disposable income should lead to a greater propensity to spend and that should also prove to be positive for the auto industry. The third point, which is important for the auto industry, is the scrapping of nine lakh old vehicles which should fuel replacement demand and encourage biofuels in order to maintain carbon neutrality. This would help specific projects which Maruti Suzuki is doing. Overall, Budget 2023 seems very favorable and positive.
After three years of battling the many pandemic-induced challenges, India’s Union Budget 2023 inspires hope for a better year ahead. Particularly for young Indian entrepreneurs. The proposal to set up the Agriculture Accelerator Fund to encourage innovative startups in rural areas, for instance, has the potential to be a huge catalyst for growth.
There’s much to rejoice for salaried individuals too. I believe that the relief provided by the government’s direct tax proposals will ultimately drive greater demand for consumer goods, as the disposable income surges. This, in turn, will provide a strong impetus for businesses across sectors.