The Tech Panda gathered the reactions, both positive and negative, of several experts to find out how the Union Budget 2023 has fared in the eyes of the business people.
The long awaited Union Budget is out and the people have spoken. Finance Minister Nirmala Sitharaman has proposed many changes, in what is her last Union Budget. Overall, the Budget supports growth while continuing the expenditure on infrastructure building.
Read more: Union Budget 2023: Wish list
The government proposes to spend INR 39,44,909 crore in 2022-23, a 4.6% rise over the revised estimate of 2021-22, when total expenditure is estimated to be 8.2% higher than budget estimate. The government has estimated a nominal GDP growth rate of 11.1% in 2022-23 (i.e., real growth plus inflation).
Among the top 13 ministries with the highest allocations, in 2022-23, the highest percentage increase in allocation is observed in the Ministry of Communications (93%), followed by the Ministry of Road Transport and Highways (52%), and the Ministry of Jal Shakti (25%).
HIGHLIGHTS
- Set up 50 new airports
- Increased capital investment outlay by 33.4% to INR 10 lakh crore
- Highest ever capital outlay of INR 2.4 lakh crore for railways
- Creating urban infrastructure in Tier 2 and 3 cities via UIDF
- 50 year interest free loans to states
The Tech Panda gathered the reactions, both positive and negative, of several experts to find out how the budget has fared in the eyes of the business people.
Anil Joshi, Managing Partner, Unicorn India Ventures
“As expected the current budget has something for all. The Hon FM has touched every aspect of the society. The focus has been on supporting growth and continuing the expenditure on infra building. While the budget seems populist but this has been possible only due to the strong performance of the economy in general.
While many may think the setting of 50 new airports is a normal announcement, the fact is, it will help in developing the economy in those cities
“While many may think the setting of 50 new airports is a normal announcement, the fact is, it will help in developing the economy in those cities. This will not only help in uplifting of cities but will also help in tourism and also mushrooming of startups and access to cities will be easy. This will also help in lot of job creation.”
Rachit Poddar, Co-founder, IVY Growth Associates
“India’s last budget laid a strong foundation for the world and the economic growth has been recognized across the globe for its world class digital infrastructure, unparalleled pandemic mitigation and achieving sustainable development goals. The current budget will act as an imperative blueprint to spearhead the next phase of growth on 7 pillars i.e. green growth, youth power, inclusive development, reaching the last mile, infrastructure and investment, digitalisation, and unleashing the potential.
This budget will empower financial literacy in rural areas, Industry 4.0, job creation, seamless compliance windows and capital expenditures. The macroeconomic policies and consolidation will ensure India’s growth in a sustainable manner
“The GDP of India heavily relies on education, agriculture, healthcare & industry, and the government demonstrates a continued interest to serve these areas with significant policies and schemes. A focus on technological advancements with investments into AI centres and Data reforms is a testimony of India’s goal to be forefront in technology adaption. This will unlock India to build on several emerging Industries and sectors with high employment generating capability. This budget will empower financial literacy in rural areas, Industry 4.0, job creation, seamless compliance windows and capital expenditures. The macroeconomic policies and consolidation will ensure India’s growth in a sustainable manner promoting entrepreneurs to take a big leap in contributing to the growth of our country.”
Karan Aggarwal, Chief Investment Officer, Elever
“It is a brave budget considering that Finance Minister is presenting the last full budget before the elections. Instead of loosening purse strings, she ends up setting an aggressive target to reduce the fiscal deficit from 6.4% to 4.5% in 3 years which bodes well for markets and the economy in the long term. The government continued to propel the shift towards an infrastructure-led development model by increasing capital investment outlay to INR 10 Lakh crore, a 33% increase over last year and a 200% increase since 2019.
While there is something for every sector and section in the budget including some elusive concessions on income tax under the new tax regime, instead of concessions, the government has banked on rising incomes in coming years to boost private consumption and demand. It is a big political gamble but markets would relish it
“Rail infra would get an allocation of INR 2.40 Lakh crore which is 9x that of FY 2014. These investments can have long-term positive impacts on manufacturing exports, demand, and incomes. While there is something for every sector and section in the budget including some elusive concessions on income tax under the new tax regime, instead of concessions, the government has banked on rising incomes in coming years to boost private consumption and demand. It is a big political gamble but markets would relish it.”
Mahin Gupta, Founder, Liminal
“Increasing the capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24, which is 3.3 per cent of the GDP, is highly encouraging as it is expected to boost digital infrastructure across the country for providing digital services to the remotest part of India. However, no changes in taxation were something expected w.r.t digital assets as the government is still testing the waters with the CBDC pilot project underway.
By harnessing the power of 5G, Web 3.0, and Metaverse technologies, GDP growth can be accelerated by a significant percentage. This digital infrastructure, ranging from supply chain optimization to analytics, will bolster the agri value chain and make it even stronger and more productive
“In addition, public digital infrastructure for the agri sector under an open-source standard will revolutionize the industry, propelling it to unprecedented levels of growth. By harnessing the power of 5G, Web 3.0, and Metaverse technologies, GDP growth can be accelerated by a significant percentage. This digital infrastructure, ranging from supply chain optimization to analytics, will bolster the agri value chain and make it even stronger and more productive.”
Shivam Thakral, CEO, BuyUcoin
“The focus on infrastructure development in the current budget will boost physical and digital infrastructure for catalysing India’s economic growth and make achieve the target of a $5 trillion digital economy.
The focus on infrastructure development in the current budget will boost physical and digital infrastructure for catalysing India’s economic growth
Overall, this budget accommodates the aspirations of ambitious India which is poised to make its mark at a global level.”
Sujata Pawar, Co-Founder & CEO, Avni
“We applaud the initiatives declared in the Union Budget 2023-24 by Honorable Finance Minister Nirmala Sitharaman. The budget strikes an appropriate balance between confronting the key foundations of health & well-being, inclusive development, human capital, innovation, and R&D, as well as laying the groundwork for a prosperous economy by investing heavily in infrastructure.
The budget strikes an appropriate balance between confronting the key foundations of health & well-being, inclusive development, human capital, innovation, and R&D, as well as laying the groundwork for a prosperous economy by investing heavily in infrastructure
“The government’s intention to empower women entrepreneurs through self-help clusters focused on raw material supply, product branding, and marketing is also a very unique and sensible step given that community impact plays a major role with women in India. Furthermore, the announcement of 157 new nursing colleges will further aid strengthen India’s primary healthcare system.”
Ambarish Parekh, CEO, PayCraft
“Today’s Union Budget presented by Finance Minister Smt. Nirmala Sitharaman focuses on nurturing business & encourage digitalization across sectors. The Ministry of Finance has presented a balanced budget for 2023. It is prudent as well as growth oriented to propel the digital economy and boost the MSME sector.
The Ministry of Finance has presented a balanced budget for 2023. It is prudent as well as growth oriented to propel the digital economy and boost the MSME sector
“To unleash innovation and research by startups and academia, a National Data Governance Policy will be introduced. This will enable access to anonymized data. The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach.”
Girish Kousgi, MD & CEO, PNB Housing Finance
“As our nation marches towards Amrit Kaal, the intended infusion of Rs.79,000 crores towards affordable housing is a positive move. Its’s a win-win situation fortifying our nations rural infrastructure and adding power to lower and middle income groups.
As our nation marches towards Amrit Kaal, the intended infusion of Rs.79,000 crores towards affordable housing is a positive move
“The wheels are set in motion towards an inclusive and sustainable economic growth and this 66% increased commitment will bolster higher rural participation.”
George Alexander Muthoot, MD, Muthoot Finance
“The Budget 2023 presented by our Honourable Finance Minister today has touched upon all the right chords of the economy, and it will go a long way to boost capital expenditure, infrastructure, housing, along with consumption. The capex expenditure outlay of Rs 10 lakh crore will pave the way to boost economic growth, along with job creation.
FM’s focus on sustainable cities, 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
“The enhanced outlay by 66% to Rs. 79,000 crore under the PM Awaz Yojna will boost India’s housing sector, especially in the rural and semi-urban areas. FM’s focus on sustainable cities, 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.
Gopichand P. Hinduja, Co-Chairman, the Hinduja Group
“When India is the lone shining star in the world facing threats of recession, Ms Nirmala Sitaraman has delivered a perfectly focused growth-oriented budget with massive capital investment outlays @ 4.5% of GDP while staying on track with the fiscal deficit reduction plan.
The budget clearly reflects PM Modi’s long-term vision for India and it aims to engage with and carry every section of society towards the goal of a self-reliant and strong India
“What is remarkable is the holistic, sustainable and inclusive approach taken covering every element of infrastructure and capability building and making the best use of the world-class digital public infrastructure. The budget clearly reflects PM Modi’s long-term vision for India and it aims to engage with and carry every section of society towards the goal of a self-reliant and strong India.”
Mainak Sarkar, Co-founder & CEO, Explorex
“The Union Budget 2023, is a well-balanced and growth focused effort by the Government of India to ensure greater emphasis on various sectors such as social sector schemes, infrastructure creation, bringing in a great deal of relief to the middle class. It will assist India’s economy in moving closer to the goal of reaching $5 trillion in GDP by 2025–2026 and growing at 7% in the current year. The allocation of funds to bolster the growth of startups is a noteworthy decision undertaken in the 2023 budget.
Overall, Budget 2023 has successfully addressed the need of the hour by bringing in policies and regulations that are crucial for the growth of the country
“Overall, Budget 2023 has successfully addressed the need of the hour by bringing in policies and regulations that are crucial for the growth of the country. We applaud Union Finance Minister Smt. Nirmala Sitharaman for taking all factors into account and presenting a budget focused on growth and the future in these trying times.”
Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank
“Budget 2023-24 is a well-rounded progressive and inclusive budget. The focus on important parameters like boosting consumption and inclusion is a welcome measure for our growing economy. The government has laid an important thrust on Capital Investment which will enhance consumption and create employment, both of which have been important areas of attention, especially post the pandemic.
The focus on important parameters like boosting consumption and inclusion is a welcome measure for our growing economy
“Allocation of the Budget to PM Awaas Yojana will further boost the housing sector. Support to MSME sector along with enhancement of credit gaurantee scheme will provide much needed relief to the sector. The new slabs of taxes will further help boost economic parameters like consumption, thus providing more impetus to economic growth.”
Rajiv Sabharwal, MD & CEO, Tata Capital Ltd.
“Budget 2023 has included a series of measures for inclusive socio-economic development. The Indian government with its 7 priorities and a greater focus on financial sector and infrastructure & investment have stepped in the right direction.
The overall quality of expenditure outlay provides a strong guard against global headwinds and will create impetus for private investments
“The Capex increase of 33% and a capital outlay of INR 2.40 lakh crore for railways is a bold move to create jobs and improve the infrastructure development in the country. The overall quality of expenditure outlay provides a strong guard against global headwinds and will create impetus for private investments. This will also offer a vast scope for domestic consumption.
Strong agricultural credit outlay, support measures, ease of doing business, and digitization drive across various sectors will improve multiple clusters within the economy.”
Ankur Bansal, Co-founder, BlackSoil Capital
“Budget seems to focus on heart of the economy i.e. agri, rural & infrastructure development. Huge Capex outlay is being planned without disturbing long term fiscal deficit goals, which is where markets will try to decipher the math around the same. But the initial stock market reaction also points positively to the same.
Overall reforms around middle class tax reforms & surcharge reduction will be very much appreciated by all & be a headline grabber
“Green energy finds new focus in the budget & how the same will get implemented will be interesting to understand. Overall reforms around middle class tax reforms & surcharge reduction will be very much appreciated by all & be a headline grabber.”
Sandeep Menon, Founder Managing Director & CEO, Vastu
“The budget 2023 is largely focused on improving the social-economic conditions of the country. Improved infrastructure in Tier 2 & 3 cities will lead to residential cluster development in the coming years.
The relaxation in income tax slabs provides additional disposable income in the hands of the common man which can directly lead to growth in the affordable homes segment
“With the announcement of enhanced capital expenditure by 33% and increment in the outlay for PM Awas Yojana (PMAY) by 66% to over Rs 79,000 crore, the government has provided much-needed support to the affordable housing sector. Also, the relaxation in income tax slabs provides additional disposable income in the hands of the common man which can directly lead to growth in the affordable homes segment.”
Sudhir Kunder, Country Director, DE-CIX India
“Successes in the previous budget and our transformation into the ‘AmrutKal’ were highlighted by the Honorable Financial Minister. It’s encouraging to see continued support for digital payment systems, digital document integration, and the creation of a digital public infrastructure for agritech and Fintech. Introduction of Digital lockers, Digital Library, E-Courts, and the promise of one hundred research labs to create applications for 5G were the landmark announcements.
The budget makes it abundantly clear that 2023 will be the year of digitalization, with demands for digitalization rising throughout the year
“Empowering youth with 30 Skill India Centers imparting skills like Coding, AI, robotics, mechatronics, IoT, 3D printing, and drones with other NextGen cutting-edge technologies will make them economically independent. Establishing three Institutes of Excellence for Artificial Intelligence Development is a major step forward for our country and will help to create AI in India and make AI work for India.
“Summarizing, the budget makes it abundantly clear that 2023 will be the year of digitalization, with demands for digitalization rising throughout the year. As an Interconnection Platform, DE-CIX India is pleased to shoulder the duty of ensuring the long-term viability of India’s Digital Infrastructure as “We Make Interconnection Easy. Anywhere”.
Ravindra Katti, Founder & Director, Techpartner Alliance
The Union Budget 2023-24 is reflecting the advancements made by the country’s digital technology sector
“The Union Budget 2023-24 is reflecting the advancements made by the country’s digital technology sector, which also includes contributions from MSMEs and startups. By expanding the digital ecosystem for skilling and establishing 3 Centers of Excellence for AI in top educational institutions, the budget further stresses the importance of skill development. Such initiatives will provide immense benefit to businesses, which today are facing skill-shortage challenges.”
Rajarshi Bhattacharyya, Co-founder, Chairman & Managing Director, ProcessIT Global
“The Union Budget 2023 is forward-thinking and has a positive tone. The budget is pro-MSMEs and startups, especially knowing India is home to the third largest startup companies in the world. It certainly provides further growth opportunities to these organizations, especially in the technology sector. The relief provided to the MSMEs and including them as part of the unified Skill India Digital Platform is encouraging.
The introduction of Entity DigiLocker providing online security to all organizations is a much needed one, in these times of growing cybercrimes
“The introduction of Entity DigiLocker providing online security to all organizations is a much needed one, in these times of growing cybercrimes. The National Data Governance Policy will benefit startups in a big way.”
Haribandhu Patra, CFO, Lentra
“On the youth power front, The Pradhan Mantri Kaushal Vikas Yojana 4.0 will help train lakhs of youth and improve their employability in the fast-changing tech-driven economy. The estimated fiscal deficit of 5.9% of GDP shows the government’s responsible approach to fiscal management.
The estimated fiscal deficit of 5.9% of GDP shows the government’s responsible approach to fiscal management
“We are optimistic about the potential impact of these reforms on the Indian economy and look forward to contributing to its growth. Further, the revision of income tax slabs will empower the middle class by enhancing their spending capacity. This in turn will boost the country’s economic activity and gross domestic product (GDP), and ultimately help achieve sustainable economic growth.”
Ahmed Aftab Naqvi, Global CEO & Co-founder, GOZOOP Group
‘Make AI in India’, ‘Make AI work for India’, 100 labs for 5G application development and 30 Skill India international centers are fantastic initiatives
“‘Make AI in India’, ‘Make AI work for India’, 100 labs for 5G application development and 30 Skill India international centers are fantastic initiatives in the right direction to spark innovation and entrepreneurship that will further fuel Bharat’s growth and Atmanirbharta.”
Niraj Hutheesing, MD & Founder, Cygnet Infotech
“The Budget has been a step in the right direction for strengthening GST compliance eco-system without levying additional burden on the taxpayers. There have been several taxpayer friendly steps such as allowing composition dealers to supply goods through e-comm operators, restricting filing of returns after a certain period to enforce compliance, decriminalising certain offences and raising the monetary threshold for launching prosecution.
There have been several taxpayer friendly steps such as allowing composition dealers to supply goods through e-comm operators, restricting filing of returns after a certain period to enforce compliance, decriminalising certain offences and raising the monetary threshold for launching prosecution
“The amendments to clarify the intend of the law in certain cases is also a welcome step. The consent-based GST returns, e-invoice and e-way bill data has been allowed by inserting Section 158A to allow flow-based lending. This will enable the new age fintech companies to use such data and analytics to disrupt the traditional forms of doing business, target niche markets and orient their products to maximize consumer satisfaction.”
Avneesh Kumar Agarwal, Founder & CEO, SpeckyFox
“Budget 2023 is the first Amrit Kaal Budget, and I think it unleashes the exemplary spirit of growth and infrastructure. This budget is trying to bring India’s gigantic hunger for development.
This year’s budget has not only come up with benefits for the middle class but for big earners too, the highest effective rate has been reduced from 42.7% to 39%
“In a major tax relief for the middle class, the income tax rebate has been extended on an income of up to Rs. 7 lakhs under the new tax regime. Which I think is outstanding. However, to benefit from this, people will have to move to the new tax regime from the old one that offered various tax deductions that now are removed in the new one. It will be great if people make rational choices here. This year’s budget has not only come up with benefits for the middle class but for big earners too, the highest effective rate has been reduced from 42.7% to 39%.
“With 2.4 lakh crore for railways, 100 labs to develop apps using 5G services to be set up in engineering institutions, and 3 centers for excellence to be set up in top educational institutions with the goal “Make AI India” and “Make AI Woro For India” this budget is a balanced one focused on long-term growth for the country’s economy. Overall, we can clearly see that budget 2023 is aiming for the Indian economy to be heading towards a bright future. However, it could have been even better if the government also introduced something to encourage the habit of saving and investing among Indians.”
Arun Kumar Gupta, CFO, Newgen Software
“The Union Budget 2023-24 showcases the government’s focus on developing both the physical and digital infrastructure. The boost in proposed capital expenditure by 33% is a clear step towards ensuring the nation’s long-term economic development. Also, it was heartening to find that the government has allocated INR 35,000 crore towards reaching net zero emissions and achieving energy transition. Green growth has also been listed among the seven priorities.
The increase in personal income tax rebate limit and raise in exemption will be a relief for the salaried class. However, no direct benefits were provided to the information technology sector
“In continuation to the previous trends, there are some other initiatives that will further improve the ease of doing business, provide digital thrust, and simplify regulations and compliance. The increase in personal income tax rebate limit and raise in exemption will be a relief for the salaried class. However, no direct benefits were provided to the information technology sector.”
Sarbojit Mallick, Co-founder & CBO, Instahyre
“In terms of the overall budget, I think the Finance Minister did a fantastic job finding a delicate balance between being fiscally responsible and encouraging growth, especially given that we have not yet fully escaped from the pandemic’s shadow. The budget has outlined a number of excellent policies that support infrastructure greatly, encourage manufacturing, and address important growth-promoting cohorts like MSMEs, youth, and even the startup scene.
In terms of the overall budget, I think the Finance Minister did a fantastic job finding a delicate balance between being fiscally responsible and encouraging growth, especially given that we have not yet fully escaped from the pandemic’s shadow
“The budget has placed a lot of emphasis on capital spending and personal taxation, also a revamped loan guarantee programme for MSMEs with an infusion of Rs. 9000 crores would shield businesses from the burden of rising interest rates. However, the budget includes a number of important reform proposals and budgetary measures that will promote social and economic progress.”
