Corporates and industry bodies see the budget 2023 as a positive one which covers all the aspects of the Indian economy. They feel that the budget will go a long way in helping boost capital expenditure, infrastructure, housing, along with increased consumption. Measures such as the capex expenditure outlay of Rs 10 lakh crore will pave the way to boost economic growth, along with job creation. Initiatives such as the enhanced outlay by 66 per cent to Rs 79,000 crore under the PM Awaz Yojna will boost India’s housing sector, especially in the rural and semi-urban areas. The budget's focus on sustainable cities, for 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. 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 9,000 crores in the corpus. This will enable collateral for Rs 2 lakh crore loans to the small and medium-sized businesses. Further, 95 percent 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,” remarked Alexander Muthoot, MD, Muthoot Finance.
Many other corporates also hailed the budget saying that the it will help the country achieve the much needed economic growth and fiscal consolidation. “Budget with vision, structure, discipline. Immediate benefits to all individual earners. Continues measured path of fiscal consolidation. Sets foundation to increase every Indian’s per capita income exponentially from 1.97 lakhs( 2400$).True to its name: 1st budget for Amritkaal,” remarked Uday Kotak CEO of Kotak Mahindra Bank
Corporates opine that a 33 percent increase in capital expenditure to Rs 10 lac crore the highest ever will go a long way in building roads, ports, and airports that are crucial for making India a reliable investment destination. At the same time the nvestment of Rs. 2.4 lac crore in railways is commendable. “The gross borrowing estimate of Rs 15.43 trillion for next year is lower than the survey estimates of Rs 15.77 trillion rupees. Hopefully, that should cheer the bond markets. Net borrowing at Rs 12.3 trillion however, is higher than the estimate. Need to see how much of that could be raised via green bonds. India’s maiden sovereign green bond issuance last month fetched a better-than-expected yield and the next tranche is planned for Feb. 9. The FM has reduced the fiscal deficit target to 5.9 percent for 2023-2024, which is a welcome move and should help in maintaining the interest rate lower,” pointed out Anand Rathi, Founder and Chairman, Anand Rathi Group.
Many representatives from different industry bodies feel that the budget 2023-24 has been announced at a time when India finds itself in the bright spot as the growth of Indian economy is highest among the leading economies. Inflation has come down with the calibrated efforts of the government. Domestic demand is showing sound signs of recovery. The credit for MSMEs sector has shown around 30 per cent growth. The reduction in tax slabs and furthering economic growth by increasing the budget for infrastructure are also positive steps. “The government has presented an ambitious budget that is expected to have a significant impact on various sectors. The Prime Minister Awas Yojana has seen a remarkable 66 per cent increase in its funding, from Rs 47,500 crores in the previous year to Rs 79,000 crores. This is a major highlight of the budget, as it provides much-needed financial assistance to countless low-income households. The generous fund allotment will allow for the improvement of existing resources and provide improved urban housing options to a large portion of the population,” said Saket Dalmia, President, PHD Chamber of Commerce and Industry.
He said the ambitious agricultural credit targets of up to Rs 20 lakh crore by 2024 prioritize animal husbandry, dairy, and fisheries, which have the potential to significantly boost the economy. In addition to that, the government has introduced a brand-new Rs 9,000 crore loan guarantee plan to assist the MSME sector and this revision will bring down the cost of credit by one per cent and offer MSMEs an extra Rs 2 lakh crore in collateral-free loans.
“Tourism sector holds enough potential to generate revenue for the government and also employment creation for the youth of our economy. So, establishment of new airports and new schemes in this sector are highly appreciable. Dekho Apna Desh Scheme for Tourism has been announced. Fifty new airports will be established in the economy,” added Dalmia.
Many other experts feel that 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 infrastructure spending will definitely aid CV sales, the aim to scrap all old government vehicles by aiding state governments will boost all segment sales. Reduction in highest tax surcharge from 37 to 25 per cent will also benefit luxury vehicle sales. With focus on electrification, relaxation on import duties of Lithium ion batteries will help in price reduction of EVs, thus make it affordable for the masses. For the auto MSMEs the cost of credit guarantee will reduce by one per cent thus helping auto dealers in raising funds. The budget has also focussed on ease of doing business by reducing more than 39,000 compliances and enabling entity level digilocker for storing and sharing documents,” remarked Manish Raj Singhania, the President of FADA (Federation of Automobile Dealers Associations).
Many corporates in the realty sector feel that the increase in the PMAY budget by 66 per cent to Rs 79,000 crore from Rs 48,000 crore will help significantly increase affordable housing and achieve the goal of housing for all. “The budget also focuses on Green Growth which will lead to sustainable ecosystem development promoting efficient transportation systems and energy storage systems leading better housing infrastructure. The budget has focused on capital expenditure as well as consumption. Overall, it is a progressive budget that will undoubtedly encourage the real estate sector's expansion,” remarked Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd.
