UNION BUDGET 2023: NAGARAJ KRISHNAN Managing Director, Aparajitha Corporate Services Private Limited

REACTION TO UNION BUDGET 2023

We see a lot of positivity in the budget proposals tabled by Hon’ble Finance Minister Smt. Nirmala Sitharaman.

• India is evolving as a robust and strong global economy. Indian economy has become more formalised as witnessed by significant enhancement in digital payments. Per capita income has increased to Rs 1.97 lakh. Indian economy has increased in size from being 10^th to 5^th largest global economy in last nine years.
• Agri credit has been increased which could result in inclusive growth. The budget envisages India becoming a global hub for Sri Ann or Millets.
• Big boost to medical research and health care can help overall reach and affordability of health care to all.
• Capital investment outlay increased by 33 percent from existing 3.3 percent of GDP could result in driving economy to speedy growth enables opportunity for large and MSME companies and in job creation across all levels. Welcome capital infusement into railways to the tune of 2.4 lakh crore. 9k credit guarantee scheme for MSME is another booster for this sector for revival and growth.
• 50 additional airports can help last mile connectivity and helps in new employment opportunities.
• Continued thrust on ease of boing business – no mentioning about the implementation of labour codes – 39k compliance reduced and 3k legal provisions decriminalised.
• PAN is going to be the common identifier across all government machineries help in simplification of access for the individual and aggregation of data for better compliance for the government.
• Replacement of old polluting vehicles through scraping policy by Central and State governments can provide impetus to automobile industry and provides thrust to strong development of vehicle scarp industry.
• Relief in customs duty on mobile parts, TV parts, lithium batteries, heat coils and other electronic parts can attract more migration of investments from China to India.
• Relief in personal income tax can leave additional money in the pockets of the individuals which can lead to more spending and savings.

The budget indicates that it’s a good time for companies to go for expansion and create more employment.