Industry Chiefs On Budget 2023 Implications

Gautam Hari Singhania, Chairman and Managing Director, Raymond Group
The Union Budget 2023 has laid down a roadmap for India’s Amrit Kaal with a futuristic and digitally-forward approach. The identified seven priorities complement each other and is a brave move that will take India to new heights leading into its centenary of Independence. This Budget will bring relief to the common man reeling under mounting inflation rates and economic turmoil with revision of personal income tax slabs and promise of more employment and social security schemes. This reflects the government’s intent to enhance disposal income, enable discretionary spends and provide impetus to the industry. By encouraging more private investment in infrastructure, the government has ensured a greater thrust to the booming sector. By laying all its focus on the infra industry, the government has ensured an overall economic overhaul.

Affordable housing has been this government’s priority and, over the years, several schemes have been announced to instil confidence among the middle class to own homes. This Budget enhances the outlay for PM Awaas Yojana by 66 per cent to over Rs 79,000 crore, another step towards making homes more affordable. With this Budget, the government aims at fulfilling the dreams of a young, aspirational India with technologically-driven learning and skilling initiatives. It lays a strong foundation towards building a developed nation, which is the dream of every Indian.

N Chandrasekaran, Chairman, Tata Sons
Given the challenging macro backdrop of slowing global growth and tightened financial conditions, the Finance Minister has aptly prioritized growth. 

I welcome the move to more productive expenditure, budgeting capital spending of Rs 10 lakh crore—a 33 per cent increase over the previous year and the highest in the past two decades as a share of GDP. At the same time, the revision of income tax slabs under the new tax regime should increase purchasing power for many. Loan guarantees and other assistance toward MSMEs, a focus on tourism, and measures announced for the care economy (like new nursing colleges) will boost job creation. The budget also remains committed to shared prosperity by extending the free food scheme for one more year.

This budget shows not only the kind of policy support that is necessary for the economy at this moment but also strengthens the strategic foundations for our long-term growth. We are witnessing three major transformations globally: rapid digital adoption, the rebalancing of supply chains, and environmental sustainability.  This budget helps position India to play a leading role in all three transformations

Ramesh Kalyanaraman, Executive Director - Kalyan Jewellers
We applaud the government's efforts to boost India’s economy through a structured policy and regulatory-driven framework. The Union Budget 2023 is progressive setting the stage for a more equitable and sustainable future, paving way for rapid digitisation to ensure Indian businesses emerge as a dominant force on the global stage.

We are confident that increased disposable income due to changes in the tax slab will improve spending power, thus benefiting the overall consumer sector including the organised  jewellery retail industry. Initiatives such as PM Vishwa Karma Kaushal Samman programme are a pioneering step towards empowering traditional artisans and craftspeople - the backbone of our industry. This newly-conceptualised assistance package will be a welcome relief to the community and will enable them to equip and upgrade themselves with changing times. 

The government’s innovation-led and technology-driven approach reflects in its investment towards research on lab-grown diamonds, which will generate new employment opportunities, while resonating with the export as well as urban Indian market. The increase in the import duty of silver will not have a significant impact for us (Kalyan Jewellers), as our primary focus is on gold, diamond and other precious stone studded jewellery.

Laying the foundation for [email protected], the Union Budget 2023 is truly a testament to the government's commitment and consistent efforts towards holistic and inclusive economic growth and its vision to make India the 3rd largest economy in the world. Overall, the reforms in the budget are mostly aligned towards strengthening Government’s schemes like Make in India, Digital India and ease of doing business in the country. This budget is a step in the right direction towards a bright and prosperous future.

Sanjiv Mehta, MD, Hindustan Unilever
The finance minister made another exciting announcement regarding revamp of Credit Guarantee Scheme under Credit Guarantee Fund Trust for MSMEs of Rs 9000 crore in the corpus, effective from 1 April 2023. This amendment will allow an additional Rs 200 crore collateral-free loan. According to Sitharaman, it can reduce borrowing costs by 1 per cent for MSMEs.

Mehta said, "The provision that you will get a tax reduction only if you pay being on cash basis, is really good for the industry. The other is, they are talking about that you need repository of information which will allow access to information and then subsequently credit rating of MSMEs, so this foundation that they laid would be good because MSMEs need access to capital.

Rajeev Dimri, KPMG India
Many of the announcement were about continuing the exemptions because exemptions now have a shelf life of 2 years and they need to be extended. So, some of the announcement FM made were about continuing the exemption. There was no announcement on GST which was unexpected. There was an expectation of an amnesty scheme on customs which has not come, we did have on past schemes for corporate tax as well as excise duty and service tax, So an amnesty scheme on corporate tax was expected” reacted Rajeev Dimri, KPMG India on Budget 2023.

Another interesting announcement was regarding some kind of unified portals for all tax filing, although we need further details in this, we might see, instead of filing multiple text return with multiple authorities, there can be this unified data exchange portal that can satisfy the needs of all regulations.

Manish Sharma, Chairman, Panasonic Life Solutions India
For last few years, one of the concern for electronic industry was that there is so much of potential for demand consumption happens in the country. How do we unlock that potential? And in the first instance, the announcement of 33 per cent expansion of the capital expenditure is a welcoming as an entrepreneur because you know, that is where the the positive spiral starts. Then when you look at the end of the speech, by letting the money be put in the hands of people, especially the middle class and the salaried class, you naturally assume that the demand of FMCG products will start to go up," responded Manish Sharma, Chairman, Panasonic Life Solutions India on Budget 2023.

Angshu Mallick, MD &  CEO - Adani Wilmar
We congratulate the central govt. for guiding the country to become the 5th largest economy in the world. The Union Budget 2023 reflects upon the government's plan to stimulate India's economy with a well-planned policy and regulation-based framework. We believe, the various schemes and policies will play a critical role in laying the foundation for accelerated digitalization and enabling Indian businesses to become prominent players on the global stage. As one of the leading players in the FMCG sector, we are optimistic about a strong uptick in rural demand on the back of ,massive wave of digitisation through an array of infrastructure-led initiatives announced by the Government, thereby empowering the farmers and the agricultural sector. Furthermore, decentralisation in storage facilities will provide further assistance to ensure India’s surplus food produce is not wasted.

The total CAPEX outlay in the Union Budget has been enhanced by 33% from 7.5 Lakh Cr to 10.0 Lakh Cr which takes it to an all-time high of 3% of GDP, this positive outlook will surely stimulate consumption, generate opportunities both in rural and urban employment and jack up local production. Overall, the Union Budget 2023 lays a strong foundation for [email protected] with enhanced focus on farming sector, which is the backbone of Indian economy as well as digitization that will open new growth opportunities for the economy.

Ashish Kumar Chauhan, MD & CEO, NSE
This is a growth-oriented budget, one of the best in years, with a focus on both infrastructure and job creation, while reducing income tax for pretty much everyone, and lots of money to states. The Budget would support growth and the Indian consumption story, keep us in good stead, given global headwinds in China and developed markets, and until the rest of the world eases.

Before the budget was presented, investors worried about a rise in capital gains. No change there, has also created a positive reaction. Overall this is a very positive budget for the markets, with something for everyone. I give the Budget 10/10.

Pradeep Bakshi, MD & CEO, Voltas 
Budget 2022-23 will provide an impetus for growth across sectors, that will help the economy revive at an accelerated rate. The measures introduced by the Finance Minister in Budget 2023 will not only support domestic capacity creation but also boost infrastructure, generating both growth and employment across industries. The overall increase in capital expenditure in line with our dream of make in India and "Atmanirbhar Bharat" will also create long term benefits paving the way for recovery. The development of urban infrastructure in Tier 2 and 3 cities will increase the demand for infrastructure projects, consumer appliances and HVAC systems. The focus on agriculture and horticulture storage will help in expanding the market thereby increasing the demand for cold chain & commercial refrigeration.

We also foresee the budget spurring  demand for construction equipment, considering significant investment in infrastructure projects like railways, road, urban infrastructure and power. Additionally the green growth agenda will help our business and customers at large to achieve their vision of a greener tomorrow.

Further, the increase in the personal income tax rebate to Rs. 7 lakh will provide consumers with higher disposable income, helping them spend on improving their life style through purchase of their desired appliances and other equipment for their households. We also believe that attention on customs duty for AC components and other high demand consumer durables would help manufacturers reduce cost of production and thereby increasing the consumer demand. At Voltas, we have been contributing towards nation building since our inception and we look forward to being a part of India’s growth story as it strives for higher trajectory.

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.

Tarun Arora- Chief Executive Officer, Zydus Wellness
The 2023-2024 budget reflected a balance whilst focusing on long-term economic development through a progressive increase in capital investments and controlling fiscal deficit. Furthermore, with a proposal driving inclusive growth within key focus areas, the budget suggests viable public-private partnerships to ensure multi-faceted sustainable development across sectors.

Multiple priority areas have been addressed with a focus on Green Energy, AI, digital transactions, housing etc. As a consumer demand-driven company, the allocations, collaborations, and rebates will help make our brands more sustainable while building a circular economy on a macro level.

With the supply-side actions and other budget proposals, we hope to see some of these translate into boosting disposable income and improving consumer demand.up three

Daniel Mazon, Vice Chairman & Managing Director, Philips Indian Subcontinent
We welcome the announcements made by the Finance Minister in 2023-24 Budget as there is a higher emphasis on expanding health infrastructure and development of technology-based solutions in India. The decision to set upthree Centres of Excellence of Artificial Intelligence (AI) will foster innovation to develop cutting-edge applications and scalable solutions in healthcare. We are also encouraged by the Government’s focus on increasing the number of skilled healthcare professionals in the country through new educational institutions as it will increase accessibility to quality healthcare. Philips, as a health-tech company, is committed to working with the Government to further strengthen our country’s digital healthcare infrastructure and improve the lives of fellow Indians.
Subhrakant Panda, MD, CEO, Indian Metals and Ferro Alloys 
I think the budget has been extremely balanced and progressive, and there is primacy represented to growth. The government has clearly focused on the agriculture sector, urbanisation, digitalisation from last 7-8 years."

This year FM has announced increase in capital expenditure by 33 per cent to Rs 10 billion, and Rs 9000 crore in the corpus, effective from 1 April 2023 of the MSMEs. These steps have delighted the experts to appreciate today's budget.

Panda said, "We are delighted to see a substantial 33 per cent hike in the capex outlay at 10 lakh crore which is the highest ever, amounting to about 3.3 per cent of GDP. In fact, when you take into consideration the grant-in to states, etc, that number further goes up to 13.7 lakh that is 4.5 of GDP, and that certainly is a substantial number that we welcome. We feel that this will be a year of transition being government-led capex coming to private sector."

R Jeswant, CEO, Funskool India

“The increase in basic Duty on Toys and parts of Toys (other than parts of electronic toys) to 70% is a boost to Domestic Manufacturers and will help in India developing into a manufacturing hub for toys, as envisaged by our Prime Minister”, said Mr. R Jeswant, CEO of Funskool India Ltd.