Monday, July 15, 2024

Union Budget 2023-24: Key expectations from the Industry Veterans

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As we approach the Union Budget for FY 2023-24, there are several key areas that are likely to be the focus area for the government.One area of focus is likely to be economic growth and development.

Union Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2022-23 on February 1, 2022.This is the fourth budget of Prime Minister Narendra Modi’s NDA government in its second term.

The government’s announcement of a slew of significant economic reforms over the last three years has bolstered the engines of economic growth.However, sustained higher growth must be supported by increased consumption and a favourable investment atmosphere in the country.

Let us look at different sectors and what to expect from them;

Prashant Kumar Founder and CEO at weTrade

“The budget comes at a time when there is a lot of activity in the crypto sector. After the announcement in the last budget, the government should examine the 1% TDS and reduce it. Cryptocurrency should also be considered closer to other equity assets.

Given that the G20 is looking into a global crypto framework under India’s presidency, the government should consider bringing out some industrial regulations for the sector in this budget. It is the need of the hour to protect consumer interests”.

Arjun Khazanchi Co-Founder and Chief Legal and Strategy Officer at Rooba.Finance
“Most expert believe that the government will reflect fiscal prudence in light of growing interest rates and impending slowdown of large economic powers like the U.S while also navigating a tilt towards the interest in India as a viable financial super power in the coming decades.

There is a slow change will be need to carried out in order to see that come to fruition but the $5 Trillion may not be as far as was initially believed.Tax collections in even in this environment have been rising and there is no expectation of easing rates.

There is broad consensus around a slowing in growth in the short term but and inflation being sticky around the 6% -8% levels before a reduction follows.There are tools at the disposal of the central bank but typically these are blunt force tools lacking surgical precision.

There are hopes that the blockchain world may see some form of regulatory clarity in the coming months but nothing concrete around the budget, which does leave room for further uncertainty in the space”.

Manu Awasthy- CEO and Founder, Centricity Wealth Tech

“The Union Budget 2023-24 will be presented in the backdrop of geo-political uncertainties, high inflation and slowing global growth.At this juncture, carefully thought through steps to enhance domestic sources of growth would be crucial to maintain a steady trajectory.Measures to reduce cost of capital, power, logistics, land, and labour would be most welcome along with steps to grow employment, capacity utilization and social infrastructure.

For private investments to grow, factory level business and enhanced incomes in the agriculture sector would be indispensable.The budget expectations look positive, but recessionary and inflationary tendencies must be kept in check.Factory output and growth in agricultural incomes seem to be the government’s focus, along with growing consumption.Capital goods, banking and consumer durables could be beneficiaries of some positive budgetary allocations.

Consumption and expenditure are 2 integral pillars to India’s growth story. Capacity utilisation and manufacturing sentiments are contingent to these 2 factors. With purchasing power looking to grow in the post pandemic era, coupled with the government’s vision of Atmanirbhar Bharat, infrastructure, capital goods and consumer durables could be the main beneficiaries. Infrastructure, agriculture, and capital goods could see positive momentum coupled with banking as credit penetration continues to improve. The government’s focus is expected to be on growing consumption and improving infrastructure.”

Mr. Sachin Gaikwad, Founder & CEO, Buildd

“For the Indian fintech and startup industries, 2022 was a fantastic year. The upcoming budget should take into account providing tax advantages to consumers, retailers, and ecosystem enablers in light of the growth in digital payment. It should support additional collaborations between banks and fintech in order to boost innovation in the fintech sector. Furthermore, we believe ESOP policy should be relaxed in terms to avoid dual taxation.

The government should make Co-lending module more flexible for PSU & large private banks to participate along with non-rated NBFCs basis their credit underwriting modules”
GST subsidy for Fintechs & Financial infrastructure players who are reaching via tech to tier 2, 3, 4 towns & running microfin programs for unbanked segment should been taken into consideration”

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