By Express News Service
The expectation was for a populist Budget, given that it is the last full-year budget before the elections in 2024. Quite the contrary was what the FM presented. It’s no secret that most of the developed nations are grappling with recessionary pressures, and it is a risk that every economist is ruminating over. FM Sitharaman has kept her calm amidst the storm and shown intelligent focus in doing her job well.I feel that with this Budget, India has put its best step forward towards mitigating and, maybe, even avoiding some of the looming risks, with multiple facets announced in the Budget that act as counter-forces.
The highlight of the Budget is the infrastructure-led growth plan. The FM has been wise to build upon last year’s Budget and the good work achieved on the ground. The 10 lakh-crore outlay will help with a multiplier effect on consumption and job creation. The number is staggering – thrice what was announced for FY20 just three years back! It will now be critical to follow through, as implementation will remain the key to making the desired impact a reality.
The Rs 2.4 lakh crore spend on railways will help improve connectivity and, more importantly, freight – another multiplier that will help bolster trade and commerce across the country. The direction is clear – end-to-end connectivity through airports, helipads, landing grounds and urban infra for the next-tier cities. We are on a clear path to percolate business laterally and widen the growth base beyond existing powerhouse cities.
ALSO READ| Budget 2023 HIGHLIGHTS: FM announces big tax sops, highest-ever capital outlay
FM Sitharaman has put money in the pockets of deserving people. A welcome relief on personal taxation will lead to consumption-led demand, a key lever to help India overcome recessionary forces. This has been backed by incentivising domestic manufacturing of home electronics and mobile phones. Electronics import has long been a burden on India’s reserves, and steps to keep the money within our borders are a smart move that will have a long-term systemic benefit.
It’s a rare privilege to dream of global leadership, more so in a tech-heavy sector. Setting an aspirational but achievable target of 5 million tonnes of green hydrogen with Rs 19,700 crore capital support is encouraging. Not only will this help reduce emissions, but it will cut dependence and import burden from fossil fuels.
It is a tough time for the world. The conflict in Ukraine with the pressure on energy costs has tested the resolve of the developed western nations towards their net zero and green focus goals. It is a true show of character to not compromise on doing the right thing – focus on the circular economy, incentives to states to promote alternate fertilisers, green credits, revitalising mangroves and wetlands and allotting Rs 35,000 crore towards a transition to clean energy.
Another key element that the FM has refused to compromise is inclusive growth. First, with enablers such as cutting-edge agritech practices and open-source digital infrastructure, India can strengthen its transition towards becoming the food basket to the world. Secondly, MSMEs have been recognised as the real job creators, and steps like extending the credit guarantee scheme with an additional Rs 9,000 crore, refund of forfeited amounts and using tax levers to speed up payments will help strengthen this critical backbone of the Indian economy.
Third, start-ups have continued to be prioritised. Apart from tax incentives, much emphasis is on digitisation, digital payments and setting up funds to aid start-ups that are helping India become the poster child of the start-up eco-system. Lastly, co-operatives have been incentivised through tax breaks, and I feel that this will be one of the critical steps in bringing money into the hands of the common man.
The Budget is full of smart moves if one looks closely. Latent engines like tourism are being refocused on to kick-start revenue generation and again with a focus on creating wealth in the hands of local communities. Key issues have been focused on, such as tourist security, which shows the diligence and thoroughness of the steps announced.
Another smart move is the bet on lab diamonds. Once again, the attention to detail is clear from enabling measures such as reducing customs duty on lab diamond seeds and grants for research to IIT. Also, while there was a lot of noise around capital gains taxation, it is clever to keep things unchanged and capital markets attractive to foreign and domestic investors.
In all the flare around big bang measures, the unsung hero is that the fiscal deficit target for FY23 has been maintained at 6.4% as per the long-term plan, despite the global turbulence on crude prices, currency volatility and geo-political sensitivity. Keeping the ship steady towards 5.9% in FY24 and 4.5% in FY26 in the backdrop of a country and world just coming out of the Covid-led disruptions is truly commendable. This is a big positive that alleviates a major concern.
ALSO READ| Budget 2023: What’s costlier, what’s cheaper
It is still sinking in. The more it gives me a feeling that India has truly arrived. We are today looking beyond ‘roti, kapda aur makan’ and aspiring to become global leaders in digital technology. The West that always thought of us as a nation of snake charmers today looks to India as a digital partner.
From being marginalised on the global stage, today’s world leaders are eager to meet our leaders as critical proponents of global geopolitics. A new chapter in the world story is about to begin, with India as the protagonist. As I sit and think about how long we have come as a country, it gives me exhilaration and confidence.
Harsh goenka Chairman, RPG Enterprises
The expectation was for a populist Budget, given that it is the last full-year budget before the elections in 2024. Quite the contrary was what the FM presented. It’s no secret that most of the developed nations are grappling with recessionary pressures, and it is a risk that every economist is ruminating over.
FM Sitharaman has kept her calm amidst the storm and shown intelligent focus in doing her job well.
I feel that with this Budget, India has put its best step forward towards mitigating and, maybe, even avoiding some of the looming risks, with multiple facets announced in the Budget that act as counter-forces.
The highlight of the Budget is the infrastructure-led growth plan. The FM has been wise to build upon last year’s Budget and the good work achieved on the ground. The 10 lakh-crore outlay will help with a multiplier effect on consumption and job creation. The number is staggering – thrice what was announced for FY20 just three years back! It will now be critical to follow through, as implementation will remain the key to making the desired impact a reality.
The Rs 2.4 lakh crore spend on railways will help improve connectivity and, more importantly, freight – another multiplier that will help bolster trade and commerce across the country. The direction is clear – end-to-end connectivity through airports, helipads, landing grounds and urban infra for the next-tier cities. We are on a clear path to percolate business laterally and widen the growth base beyond existing powerhouse cities.
ALSO READ| Budget 2023 HIGHLIGHTS: FM announces big tax sops, highest-ever capital outlay
FM Sitharaman has put money in the pockets of deserving people. A welcome relief on personal taxation will lead to consumption-led demand, a key lever to help India overcome recessionary forces. This has been backed by incentivising domestic manufacturing of home electronics and mobile phones. Electronics import has long been a burden on India’s reserves, and steps to keep the money within our borders are a smart move that will have a long-term systemic benefit.
It’s a rare privilege to dream of global leadership, more so in a tech-heavy sector. Setting an aspirational but achievable target of 5 million tonnes of green hydrogen with Rs 19,700 crore capital support is encouraging. Not only will this help reduce emissions, but it will cut dependence and import burden from fossil fuels.
It is a tough time for the world. The conflict in Ukraine with the pressure on energy costs has tested the resolve of the developed western nations towards their net zero and green focus goals. It is a true show of character to not compromise on doing the right thing – focus on the circular economy, incentives to states to promote alternate fertilisers, green credits, revitalising mangroves and wetlands and allotting Rs 35,000 crore towards a transition to clean energy.
Another key element that the FM has refused to compromise is inclusive growth. First, with enablers such as cutting-edge agritech practices and open-source digital infrastructure, India can strengthen its transition towards becoming the food basket to the world. Secondly, MSMEs have been recognised as the real job creators, and steps like extending the credit guarantee scheme with an additional Rs 9,000 crore, refund of forfeited amounts and using tax levers to speed up payments will help strengthen this critical backbone of the Indian economy.
Third, start-ups have continued to be prioritised. Apart from tax incentives, much emphasis is on digitisation, digital payments and setting up funds to aid start-ups that are helping India become the poster child of the start-up eco-system. Lastly, co-operatives have been incentivised through tax breaks, and I feel that this will be one of the critical steps in bringing money into the hands of the common man.
The Budget is full of smart moves if one looks closely. Latent engines like tourism are being refocused on to kick-start revenue generation and again with a focus on creating wealth in the hands of local communities. Key issues have been focused on, such as tourist security, which shows the diligence and thoroughness of the steps announced.
Another smart move is the bet on lab diamonds. Once again, the attention to detail is clear from enabling measures such as reducing customs duty on lab diamond seeds and grants for research to IIT. Also, while there was a lot of noise around capital gains taxation, it is clever to keep things unchanged and capital markets attractive to foreign and domestic investors.
In all the flare around big bang measures, the unsung hero is that the fiscal deficit target for FY23 has been maintained at 6.4% as per the long-term plan, despite the global turbulence on crude prices, currency volatility and geo-political sensitivity. Keeping the ship steady towards 5.9% in FY24 and 4.5% in FY26 in the backdrop of a country and world just coming out of the Covid-led disruptions is truly commendable. This is a big positive that alleviates a major concern.
ALSO READ| Budget 2023: What’s costlier, what’s cheaper
It is still sinking in. The more it gives me a feeling that India has truly arrived. We are today looking beyond ‘roti, kapda aur makan’ and aspiring to become global leaders in digital technology. The West that always thought of us as a nation of snake charmers today looks to India as a digital partner.
From being marginalised on the global stage, today’s world leaders are eager to meet our leaders as critical proponents of global geopolitics. A new chapter in the world story is about to begin, with India as the protagonist. As I sit and think about how long we have come as a country, it gives me exhilaration and confidence.
Harsh goenka Chairman, RPG Enterprises
