Post Budget ReactionS
Ashish P. Dhakan MD & CEO Prama Hikvision India Pvt. Ltd. The Union Budget 2023-24 clearly has the visionary roadmap to put India on the path to become $5 trillion economy. The seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector. It shows the government’s vision and missionary zeal for a developed India. We welcome the growth oriented budget positively as it is aimed at furthering the cause of the Indian manufacturing industry. The Union Budget has the blueprint of a sustainable economic growth in Amrit Kaal {Amrit Kaal refers to the next 25 years (up to 2047) leading to the centenary of India’s independenc}, backed by consistent and well-planned strategy. It also shows the strong commitment towards electronic manufacturing sector and infrastructure development. The budget shows clear intent to offer calibrated customs duty rates to provide a graded rate scheme to facilitate domestic electronic manufacturing sector. The government’s commitment to empowering the youth by introducing mandatory courses such as AI, coding, drones, IoT, 3D printing, and other soft skills under Pradhan Mantri Kaushal Vikas Yojana 4.0 and establishing of 30 Skill India international centers, will connect skilled youth with employers and leaders in the industry and encourage entrepreneurship. As an integral part of India’s fast developing electronic security manufacturing ecosystem, we are sure that this Union Budget will help to realize the vision of ‘Surakshit Bharat’ (Secure India) through the ‘Atmanirbhar Bharat’ (Self-Reliant India) roadmap. From the security industry perspective, this is an industry friendly budget as it acknowledges MSMEs as growth engines of the economy, the Budget proposes enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation. To support MSMEs in timely receipt of payments, the Budget allows deduction for expenditure incurred on payments made to them only when payment is actually made. The Union Budget offers a solace to the MSME sector. The revamped credit guarantee scheme for MSMEs to take effect from 1 April 2023 through infusion of Rs.9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs.2 lakh crore and also reduce the cost of the credit by about 1 per cent. At the hindsight, the Union Budget strikes a fine balance between big capex and fiscal discipline, it will spur the growth of Indian economy, improve the infrastructure and empower the common people. Dr. Niranjan Hiranandani Vice Chairperson NAREDCO India has prudently maneuvered global and economical storms. It has aptly addressed the economic growth of India by augmenting the capital expenditure outlays in infrastructure upto Rs.10 lac crores accounting to nearly 3.3% of GDP. This will have a multiplier effect on real estate asset classes like the residential, commercial, industrial and logistics sector. The last mile connectivity will reduce the logistics cost substantially, enhancing India’s global competitiveness and investment index. Infrastructure development is pivotal for employment generation and opens up hinterlands across geographies for all sorts of real estate developments. Setting up of Urban Infrastructure Development Fund managed by NHB will ensure governance, speed in execution and timely delivery under PPP ties. Incremental PMAY allocation upto Rs.79,000 crores will give impetus to affordable housing and benefit a wide segment of homebuyers. Rebates in personal tax will permit additional disposable income in the hands of the discerning homebuyers to be invested back in a safe asset ‘home.’ The capital gain tax benefit on the sale of property above the value of Rs.10 crores is sought to be withdrawn. families are liable to pay capital gain tax which will disincentivize families to buy multiple properties as a security provision for their children. Emphasis on skilling to foster research and knowledge-based economy will garner a job ready workforce for the highly labor-intensive real estate sector. The measures for digital adoption and green economy will augur well for sustainable development and help achieve a low carbon economy. Terming it a fiscally ‘balanced’ budget, I rate it at 8/10. The Union Finance Minister, Smt Niramala Sitharaman has expressed a clear commitment to capital expenditure, which will have a positive impact on the Indian industry and create employment opportunities. The Centre has granted 50-year interest-free loans to state governments for an additional year with a total outlay of Rs.1.3 lakh crore, encouraging infrastructure investment across the states and fostering local industries. The government has also taken measures to ensure that all sections of the salaried class benefit from the Union Budget, with reduced tax slabs from the lowest to the highest brackets. This will be advantageous for all income taxpayers, with a considerable growth in the tax base over the past five to six years. The finance minister has also taken steps to benefit the MSME sector by launching a new Rs.9,000 crore credit guarantee scheme. This revamp will offer an additional collateral-free loan of Rs.2 lakh crore to MSMEs while reducing the cost of credit by 1%, as stated in her budget speech. This budget also focuses on inclusive development, by establishing an Agriculture Accelerator Fund to nurture agri-startups and promoting digital public infrastructure. This will provide farmer-centric solutions for crop planning and storage. Substantial agricultural credit targets up to Rs.20 lakh crore by 2024 will place a priority on animal husbandry, dairy, and fisheries. This ambitious plan has the potential to significantly strengthen the economy. Vishak Raman Vice President of Sales, India, SAARC and Southeast Asia Fortinet A steep increase of 33% in capital investments to 10 Lakh Crore almost three times the outlay made in 2019 shows why India is one of the most buoyant economies in the world. While Investments and development programs are all tech-driven the budget realises the potential of 5G by setting up 100 labs in engineering institution to develop Apps to assists in all verticals including smart classroom, precision farming, smart transport systems and healthcare. The capital flowing into AI-Startups last year was $2.7 billion globally. The race in AI is heating up…