Union Budget to ready India for the next 25 years

February 17, 2023 3:32 pm

The proposals aim to promote export, boost domestic manufacturing, enhance domestic value addition, and encourage green energy and mobility.
The Finance Minister, Nirmala Sitaraman stated that the vision for the AmritKaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector.
Infrastructure & Green growth
Urban Infrastructure Development Fund (UIDF) to be established through use of priority sector lending shortfall. The capital investment outlay is being increased for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. To make “Make AI in India and Make A-I work for India” possible, three centers of excellence for Artificial Intelligence will be set-up in top educational institutions. Leading industry players will partner in conducting interdisciplinary research, develop cutting-edge applications and scalable problem.
For Green Growth, India would implement programmes related to green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy across various economic sectors. These efforts will help in reducing carbon intensity of the economy and also generate green job opportunities. A vision for “LiFE”, or Lifestyle for Environment has been introduced.
Manufacturing Sector
Customs duty exemption has been extended to import capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles. For domestic value addition in manufacture of mobile phones, relief in customs duty on import of certain parts and inputs like camera lens has been announced. The concessional duty on lithium-ion cells for batteries will continue for another year. Basic customs duty on parts of open cells of TV panels has been reduced to 2.5 percent. To revamp credit guarantee scheme for MSMEs, INR 9000 crores have been infused. Under National Data Governance Policy, an Entity DigiLocker will be set up for use by MSMEs for storing and sharing documents online securely.
Ministry of Defence has been allocated a total Budget of Rs 5,93,537.64 crore, which is 13.18 percent of the total budget. Modernisation and Infrastructure Development of the Defence Services saw upward trend in Capital Outlay. To strengthen Research and Development in Defence, the allocation to DRDO has been enhanced by 9%.This will fulfill the Ministry of Defence’s vision to leverage ideas from bright young minds across the country.
The Budget 2023-24 has announced a National Data Governance Policy to unleash innovation and research by start-ups and academia. This will enable access to anonymized data which will further boost the Defence Start-ups and iDEX scheme.
Upskilling Vision
Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within the next three years. On-job training, industrypartnership, and alignment of courses with needs of industry will be emphasized. New age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills will also be covered. To skill youth for international opportunities, 30 Skill India International Centres will be set up across different States.
Vinod Aggarwal – President, SIAM and MD & CEO, VECV.
“A 33 percent increase in capital outlay with an effective provision of Rs 13.7 lakh crores will spur growth in the economy resulting in positive impact on the Auto sector. The Auto industry is fully aligned with the initiatives on sustainability and decarbonisation and increased focus on Hydrogen, Ethanol Blending, Bio Gas, Electric Vehicles and Battery Storage. Announcement for funding various Government departments for replacement of old vehicles is also commended. Another appreciable feature of the budget is putting more money in the hands of the individuals by some lowering of effective personal income tax rates that should increase consumption and consequently lead to more demand. All in all, this is a growth-oriented budget with a positive impact on the Auto sector.”
Anshul Gupta – Managing Director, Okaya Electric Vehicles.
“The Union Budget 2023-24 is  pro-development, with sustainable planning; energy transition for a cleaner tomorrow and inclusive growth through a tech-enabled economy at its core. Moreover, the impetus on the EV sector in the budget is quite encouraging for all Industry players. Drawing from its core, the decision to exempt Lithium-ion cells of custom duties for another year is a welcome move, as its majorly impacts the affordability of EVs in India. Furthermore, the viability gap funding announced to support the Battery Energy Storage Systems, along with a framework of Pumped Storage Projects, is designed to reduce the revenue required to recover costs and offer better returns, especially for the private sector.”
Anil G. Verma – Executive Director and CEO, Godrej & Boyce.
“This is a balanced and inclusive budget which will provide further impetus to growth. The renewed thrust on investment in infrastructure will drive the productivity of our economy and generate employment. Our competitiveness in the global economy will also be improved through the thrust on research in fields like 5G services, AI and agriculture. Together with the initiatives to reduce the compliance burden and de-criminalise several regulatory provisions, it will improve the ease of doing business in India and attract fresh investments.
Measures to improve rural incomes and reduce personal income tax rates will deliver more disposable income in the hands of people, driving consumption. This will likely generate a virtuous cycle of fresh investments leading to higher employment, incomes and productivity, further spurring consumption. The Green growth focus will orient the entire economy towards adopting sustainable practices in all areas and put us in a good position to play our role in the efforts to improve the future of our planet. The key to realization of the planned outcomes is effective implementation.”
Anshuman Magazine – Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
“This year’s budget scores well on many fronts including its focus on developing infrastructure, meeting green goals, providing tax relief to the middle class and boosting the MSME sector. Measures such as an increased outlay for affordable housing, enhanced focus on tourism and development of unity malls in key cities across the country would give a fillip to the real estate sector, which will be further aided by the tax relief to citizens which should boost consumption appetite. Moreover, the sustained attention on manufacturing and improvement of urban infrastructure is likely to boost the I&L sector and at the same time spur economic activity and job creation.
Further, the 33 percent increase in capex is heartening in a year that has been marked by global headwinds; at the same time, the government’s efforts towards financial prudence by keeping the fiscal deficit target for the new year under 6 percent is commendable.”
Samrath Kochar – Founder & CEO of Trontek.
“The budget is pragmatic and has taken the right steps towards advancing green mobility adoption in the country. Extension of customs duty, exemption on Li-ion cells and removal of customs duty on imported machinery used for manufacturing Li-ion cells will bring down the cost of EV batteries thereby promoting EV adoption.
Going forward, we are certain that the Government will also look at bringing a PLI scheme for battery pack manufacturers and also reduce GST on batteries to benefit the many MSMEs operating in the EV sector.”
Sunil Mathur – Managing Director and Chief Executive Officer, Siemens Limited, India.
The inclusive, growth-oriented Budget builds on the foundation of previous years and is consistent with the Government’s efforts to maintain macro-economic stability while focusing on growth. The increase in investments in capital infrastructure, including ‘Green Growth’, sustainable cities and railways & transport infrastructure will give the necessary boost to the domestic economy. I also welcome the enhanced support for MSMEs, exports, domestic manufacturing and value-add, technology and youth, which are all imperative to maintain India’s economic growth.”
Shreegopal Kabra – MD & Group President, RR Kabel.
“This Union Budget, we applaud the Government’s focus on the growth of green infrastructure that supports factors like green building, green energy, and green equipment. These sustainable practices are a step in the right direction to achieve the goal of net zero carbon emission  by 2070. At RR Kabel, we support the Government in building a sustainable and  safe ecosystem for the future generation.
Additionally, the budget aims to achieve efficient urban infrastructure with programs like Smart Cities Mission for 100 cities and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 500 urban bodies. The budget also places a lot of emphasis on developing the nation’s infrastructure by giving impetus to Tier 2 and 3 cities for developing urban infrastructure.
As a company committed to safety through quality, we hoped the Government would  lay emphasis on the need to build safe infrastructure through the use of technologically advanced premium quality  products. As we step into a new financial year, we are determined to support the government’s objective of a stronger economy that is built on robust infrastructure.”
Sunil Agarwal – Chairman, RSH Global.
“This year’s budget is geared towards stimulating consumer spending, driving job creation, and fostering an environment of investment-driven growth. The income tax slab revised to 7 lakhs will give salaried consumers more purchasing power. Additionally, enhanced spending on infrastructure and connectivity will further boost rural consumption, and enable manufacturers to streamline their supply chains and reach customers in newer markets. Moreover, MSMEs will benefit from a revamped tax benefits, and the boost to ease of doing business, will have a positive impact on current business environment and bodes well for a mass brand like us. At Joy Personal Care, we are devoted to providing our customers with the highest quality of products for them to derive the maximum value for their money. As disposable incomes rise, we anticipate that even the more price-sensitive customers will be incentivised to increase their consumption, driving demand for our multiple product ranges.”
Rajeev Sharma – Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd.
The budget 2023 is oriented towards economic growth of the country. I am sure that 33% growth in capital expenditure will result in balanced development. This smart move will help the country achieve its goal of becoming a 5 trillion-dollar economy and a global powerhouse. I believe that the announcement of setting up 100 labs to effectively develop 5G services and vision to promote AI in overall industries is a strong step. This will further lead to automation in the industries which will help in propelling India’s growth and promoting smart cities. The budget 2023 has come up with positive announcements for different sectors to support the Make In India initiative and balanced growth in the near future.
Aravind Melligeri – Chairman & CEO, Aequs.
On the whole a forward-looking budget with a lot for the common man. The 33 percent boost to capital expenditure and higher allocation for infrastructure will boost consumption and capital generation which will be good for the economy. The export proposals focusing on in country value addition will surely go a long way in boosting Make in India.