India Inc hails Budget 2023, calls it bold and growth oriented
Indian industry bodies have welcomed the proposals put forth by Finance Minister Nirmala Sitharaman in her Budget 2023-24. Let's take a look at who's saying what
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FollowConfederation of Indian Industry (CII): Budget 2023 lays the roadmap for preparing India for the Amrit Kaal, the next 25 years up to India@100. Sharing his first reaction to the budget proposals, CII President Sanjiv R Bajaj said it is encouraging to note that the budget has made a bold attempt to invigorate the critical demand drivers of consumption and investment.
The move to rationalise personal income tax rates will go a long way in increasing disposable incomes, thus giving consumption a leg-up which will, in turn, have a salutary impact on India Inc’s investments.
Also Read: 'For all sections...' PM Modi lauds Nirmala Sitharaman & co for Budget 2023
The sharp 33% rise in capital spending budgeted for 2023-24 is in line with CII’s suggestion and lends credence to the government’s vision of improving the economy’s growth potential through a push to the overall productivity of the economy and the creation of jobs. Even as a boost was given to demand drivers, the FM did a fine balancing act of maintaining fiscal discipline by containing the fiscal deficit at 6.4% of GDP for the current fiscal and bringing it down along a steady glide path to 5.9% next year.
Naveen Munjal, Managing Director, Hero Electric: "We welcome the Union Budget 2023 presented by the Finance Minister, with sustainability and green growth across sectors at its core. It encourages the implementation of programmes across sectors to reduce carbon intensity and create green jobs through unique initiatives like 'Green Credit', PM Pranam Yojna, Green Hydrogen Mission, etc. Fronting the 'Net Zero Emission' mission, it focuses on promoting battery energy storage systems to aid in fueling the electric mobility revolution. The Budget 2023 reflects the government's inclination to support the EV transition, enabling the creation of a carbon-free nation that thrives on sustainable, futuristic, and alternative fuel technology. We are confident that initiatives under green growth and sustainability will build awareness and help everyone contribute towards a clean and green future."
Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers and MD & CEO, VECV: 33 per cent increase in capital outlay with an effective provision of Rs 13.7 lakh crores will spur growth in the economy resulting in a 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.
An announcement for funding various government departments for the replacement of old vehicles is also commended. Another appreciable feature of the budget is putting more money in individuals' hands by lowering effective personal income tax rates, which 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.
Subhrakant Panda, FICCI President: It is a balanced progressive budget that gives primacy to inclusive growth. It is a budget which is not only significant for the domestic audience, but it truly makes a move towards placing India as the world's growth engine
Manish Raj Singhania, Federation of Automobile Dealers Associations of India President: The Modi government's last full budget has been populist in all aspects as it will help boost auto sales all around. While the capital outlay of Rs 10 lakh crore in infra spending will definitely aid CV sales, the aim to scrap all old government vehicles by aiding state governments will boost all segment sales.
Apart from this, the reduction in individual tax slabs will benefit the ailing entry-level 2W and PV segment. Reduction in the highest tax surcharge from 37 per cent to 25 per cent will also benefit luxury vehicle sales. With a focus on electrification, relaxation on import duties of Lithium-ion batteries will help in the price reduction of EVs, thus making it affordable for the masses.
On the business front, being part of the MSME universe, the cost of credit guarantee will reduce by 1 per cent, thus helping auto dealers in raising funds. The budget has also focussed on ease of doing business by reducing more than 39K compliances and enabling entity-level digilocker for storing and sharing documents.
Shivakumar Ganesan, Co-Founder & CEO, Exotel: "We appreciate the government embracing the vital role of startups in driving innovation and economic growth. Policy proposals, such as extending tax benefits to startups established before April 1, 2024, will significantly boost the ecosystem. Additionally, the planned establishment of 100 labs for developing 5G applications across various industries, including healthcare, smart classrooms, and precision farming, further highlights the government's commitment to leveraging the opportunities presented by 5G and driving reforms in the telecom sector."
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