Forward-looking and focussed on fundamentals

CHENNAI: Industry body CII welcomed the budget which attempts to address the growth imperatives without compromising on the fiscal prudence path. “Through a slew of measures in forward-looking areas encompassing green growth, digital infra, urban rejuvenation among others, the budget lays the roadmap for preparing India for the Amrit Kaal, the next 25 years up to India@100,” said Sanjiv Bajaj, President, CII.

The thrust on capital expenditure will boost overall economic productivity, crowd in private investment and drive growth through a multiplier effect. Capex spending is budgeted to rise steeply for the third year in a row. Capex spending budgeted at Rs 10 lakh crore in FY24 as compared to budgeted print of Rs 7.5 lakh crore in FY23, implies over 33% rise in FY24 BE over FY23 BE. This is in line with CII recommendations. The focus on agriculture, skill development and ‘Vanchit ko Variyta’ are big positives, which will spur a transformational shift in the quality of life of the large population driving inclusion and broad based growth, said Chandrajit Banerjee, Director General, CII

The seven key priorities outlined in the budget namely inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, youth power, financial sector and green growth are in resonance with our journey towards Amrit kaal and the vision of India@100, which the Indian industry has articulated. Apart from steps for boosting the economy, the finance minister has also announced a host of measures to further the inclusion drive” said R Dinesh, President Designate, CII.

The Finance Minister has set the ball rolling to achieve the fiscal deficit target of 4.5% by 2025 2026. “Major announcements like the Agri Accelerator Fund, capital outlay of Rs 2.40 lakh crore for the Railways, Ease of Doing Business, focus on start-ups, benefits to the fintech and MSMEs sector, Centre of Excellence for millets and reduction in customs duty, digitization push, emphasis on green and clean energy and storage, continuation of the 50-year interest free loan for all States towards infrastructure development opportunities & 66% increase in outlay in housing infrastructure is a huge boost for this sector. This will boost the Indian economy in the medium and long term” said CK Ranganathan, Past Chairman, CII Southern Region.

Meanwhile, R Ganapathi, Chairman, Trigyn Technologies Ltd, and Chairperson, IIT Madras Entrepreneurs Forum believes that the Union Budget 2023 is focused on priming the economy with a 33% higher capital expenditure allocation and pushing consumption by encouraging taxpayers to adopt the new tax regime with lower taxes. He says, “The fiscal deficit target for 2023/24 was brought down to 5.9% of GDP, compared to 6.4% for the current fiscal year. The budget proposes changes in taxes and duties, with cigarettes and some imports getting costlier and certain inputs for mobile phone manufacturing and seeds used in lab-grown diamond manufacturing becoming cheaper.”