Following are some of the reactions by corporate leaders on the union budget 2023-24
Rajiv Sabharwal. Managing Director & CEO at Tata Capital
Budget 2023 has included a series of measures for inclusive socio – economic development. The Indian government with its 7-priorities and a greater focus on Financial Sector and infrastructure & Investment have stepped in the right direction. The Capex increase of 33% and a capital outlay of INR 2.40 lakh crore for railways is a bold move to create jobs and improve the infrastructure development in the country. The overall quality of expenditure outlay provides a strong guard against global headwinds and will create impetus for private investments. This will also offer a vast scope for domestic consumption. Strong agricultural credit outlay, support measures, ease of doing business, and digitization drive across various sectors will improve multiple clusters within the economy.
Chandrashekhar Gosh, MD & CEO of Bandhan Bank
“Budget 2023-24 is a well-rounded progressive & inclusive budget. The focus on important parameters like boosting consumption and inclusion is a welcome measure for our growing economy. The government has laid an important thrust on Capital Investment which will enhance consumption and create employment, both of which have been important areas of attention, especially post the pandemic. Allocation of the Budget to PM Awaas Yojana will further boost the housing sector. Support to MSME sector along with enhancement of credit gaurantee scheme will provide much needed relief to the sector. The new slabs of taxes will further help boost economic parameters like consumption, thus providing more impetus to economic growth.”
Manish Chaurasia, Managing Director, Tata Cleantech Capital :
“Government is walking the talk when it comes to Net Zero commitment. Budget has taken bold steps in adopting new initiatives such as dedicated funds for energy transition and Green Hydrogen mission. In addition, the government has been proactive in identifying the need of storage systems to integrate the ambitious renewable energy capacity plans. Both the Viability Gap Funding for Battery energy storage systems and framework formulation for Pumped Storage Projects will pave way for accelerated adoption of renewable energy.”
Pranay Jhaveri, Managing Director – India & South Asia, Euronet Worldwide :
“The government has continued with its focus on a digitally inclusive society that can accelerate growth. With the proposed National Data Governance policy, data security, and user privacy will improve. The KYC process is also proposed to become easier, which will add further impetus to ease of doing business across the sectors and economy.
To consolidate data available across multiple government agencies Digilocker and Aadhar will play a crucial role whereas PAN will act as a single reference point for more frictionless compliance. The budget seems like a step in the right direction and will serve to enhance India’s competitiveness.”
Sandeep Menon, Founder Managing Director and CEO at Vastu :
“The budget 2023 is largely focused on improving the social-economic conditions of the country. Improved infrastructure in Tier 2 & 3 cities will lead to residential cluster development in the coming years. With the announcement of enhanced capital expenditure by 33% and increment in the outlay for PM Awas Yojana (PMAY) by 66% to over Rs 79,000 crore, the government has provided much-needed support to the affordable housing sector. Also, the relaxation in income tax slabs provides additional disposable income in the hands of the common man which can directly lead to growth in the affordable homes segment.”
Girish Kousgi, MD & CEO, PNB Housing Finance :
“As our nation marches towards Amrit Kaal, the intended infusion of Rs.79,000 crores towards affordable housing is a positive move. Its’s a win-win situation fortifying our nations rural infrastructure and adding power to lower and middle income groups. The wheels are set in motion towards an inclusive and sustainable economic growth and this 66% increased commitment will bolster higher rural participation”.
George Alexander Muthoot, MD, Muthoot Finance :
“The Budget 2023 presented by our Honourable Finance Minister today has touched upon all the right chords of the economy, and it will go a long way to boost capital expenditure, infrastructure, housing, along with consumption. The capex expenditure outlay of Rs 10 lakh crore will pave the way to boost economic growth, along with job creation. The enhanced outlay by 66% to Rs. 79,000 crore under the PM Awaz Yojna will boost India’s housing sector, especially in the rural and semi-urban areas. FM’s focus on sustainable cities, creating infrastructure in Tier 2 and Tier 3 cities and Fifty additional airports, heliports, water aerodromes will further boost rural connectivity thereby supporting regional economy.
During the pandemic MSMEs relied heavily on gold loans to meet their credit needs and the budget further has offered a big relief to MSMEs, which have been one of the most impacted sectors during the pandemic. In order to reduce the stress on the segment and increase the flow of funds, the Government revamped the ECLGS scheme via the infusion of Rs 9000 crores in the corpus. This will enable collateral for Rs 2 lakh crore loans to the small and medium-sized businesses. Further, 95% of the forfeited amount relating to bid or performance security will be returned to the MSMEs by the government and other undertakings. We also believe that the reforms announced with respect to the growth and development of the agricultural sector, animal husbandry and fisheries will further boost these sectors and support the economy. All these measures will positively enhance the scope of Gold-loan NBFCs like us, which are catering to the underbanked sectors of the society.”
Haribandhu Patra, CFO Lentra :
“The Union Budget 2023 is focused on building a strong and resilient Indian economy with a focus on tech-driven development, leading towards a knowledge-based economy with a strong financial sector. The government’s focus on simplifying processes, expanding fintech services, and improving bank governance reflects its commitment to economic growth and stability. The announcement of 50-year, interest-free loans for states is expected to drive investment in infrastructure, leading to economic growth and job creation. The increase in the agri credit target to Rs. 20 lakh crore and the computerization of agricultural credit societies are expected to boost the agriculture sector in the future. Under the National Data Governance Policy, simplification of KYC processes, expansion of Digilocker, and proposed framework for credit infrastructure will increase access to financial services for all and foster financial stability. On the youth power front, The Pradhan Mantri Kaushal Vikas Yojana 4.0 will help train lakhs of youth and improve their employability in the fast-changing tech-driven economy. The estimated fiscal deficit of 5.9% of GDP shows the government’s responsible approach to fiscal management. We are optimistic about the potential impact of these reforms on the Indian economy and look forward to contributing to its growth. Further, the revision of income tax slabs will empower the middle class by enhancing their spending capacity. This in turn will boost the country’s economic activity and gross domestic product (GDP), and ultimately help achieve sustainable economic growth.”
Mihir Joshi, CEO, GVFL :
“The budget supports innovation and entrepreneurship, the key growth drivers of the economy. Extending the tax holiday policy by a year and the benefit of carrying forward losses on change of shareholding of startups to 10 years of incorporation from the current seven years is welcome. The focus on bringing more youth into entrepreneurship will spur the economy. Setting up three Centres of Excellence in AI and 100 labs for developing applications using 5G services will enhance the innovation capacity, fuel deep-tech startups, and help find scalable solutions for many problems”.
Bharat Patel, Chairman and Director at Yudiz Solutions Ltd :
“The FM has presented a budget that will give impetus to growth and development. Setting up three Centres of Excellence for Artificial Intelligence in top educational institutions will galvanise an effective AI ecosystem and nurture quality human resources. The setting of 100 labs for developing applications using 5G services will help realise new opportunities, business models, and employment potential. The expansion of the digital ecosystem for skilling with a Skill India Digital platform will enable demand-based formal skilling and facilitate access to entrepreneurship schemes. The boost to the startup ecosystem will spur entrepreneurship and contribute to economic development”.
Kamal Bansal, MD, GVFL :
“The Finance Minister has achieved a financial balance between increasing capital expenditure and reducing the fiscal deficit from 6.4% to 5.9%. The budget will make the economy more resilient. It also lays out the vision for the next 25 years and focuses on giving ample opportunities to the youth. The National Data Governance Policy will unleash innovation and research by startups and academia. The Agriculture Accelerator Fund will encourage agri startups by young entrepreneurs in rural areas and help in modernising agriculture. The extension of the date of incorporation for income tax benefits to startups by a year will give a boost to the startup ecosystem”.
Kshitij Patel, Chairman, Indo-American Chamber of Commerce, Gujarat Branch :
“Boost for infrastructure, energy sector and MSME sector. Strengthening roots for growth of start-ups and manufacturing units by providing substantial tax benefits.
The Budget for 2023-24 kept its focus on expanding Capex showing that the Modi government’s priorities are building roads, highways, and railway lines. The middle class has been given some relief in terms of changes in the new income tax regime clearly pointing out that the government wants a shift towards the new regime from the older one. Further incentives for International Financial Services Centre (IFSC) to make it a global hub of financial services sector; Proposes to rationalise double taxation on distribution of income to NR ODI holders by providing for exemption to any income distributed on the offshore derivative instruments, entered into with an offshore banking unit of an IFSC (subject to the conditions prescribed); Exempted income shall include only that amount which has been charged to tax in the hands of the IFSC Banking Unit under section 115AD; Also proposes to amend the definition of “Specified Fund”, “Resultant Fund” and “Investment Fund” to include the reference of IFSCA (Fund Management) Regulations, 2022.