Industry reactions on Union Budget (Part-2)

Dr. Sugant R, Dean, School of Management and School of Economics & Commerce, CMR University, Bengaluru
“The budgetary announcements towards education can be categorised into three buckets – skilling, school education and research.
The Finance Minister announced the launch of PMKVY 4.0 and 30 Skill India International Centres to skill lakhs of youth within the next 3 years. She struck a positive note by announcing stipend support to 47 lakh youth in three years under National Apprenticeship Promotion Scheme. The Finance Minister also announced the starting of 157 nursing colleges which will not only result in expanding the healthcare availability, but also provide international opportunities for Indian nurses.
With regard to school education, the Finance Minister announced two initiatives – revamping of teachers’ training through District Institutes of Education and Training and setting up of 740 Eklavya Model Residential Schools with 38,800 teachers. Also, she announced the setting up of the National Digital Library for Children and Adolescents.
In line with the Government’s thrust on technology, the budget proposes setting up three Centres of Excellence for AI in top educational institutions, setting up one hundred labs for developing applications using 5G in engineering institutions, providing access to anonymized data through National Data Governance policy and providing on-job training on AI, robotics, mechatronics, 3D printing, drones etc. through Skill India initiative.
The proposal to permit medical college faculty to use the research facilities of ICMR labs is a step in the right direction to induce research capability among the medical fraternity.
While the Finance Minister has tried her level best to balance all sectors, the disappointing fact is, still the budgetary allocation for education is still under 3%, which is grossly inadequate to a country of India's size and population.”

Lalit Beriwala, Director, Shyam Steel Industries Ltd . and Sr. Vice President , Merchants Chamber of Commerce & Industry 
“I welcome the Union Budget , 2023, that is both balanced and target driven . With increased emphasis on education, health, infrastructure development, employment generation in both rural and urban areas, skill development besides promotion of digital economy through “Make AI in India” aiming to set up three specialized  AI Centres in educational institutes  enlisting private participation , National Data Governance Policy etc. , green growth , strengthening railway  connectivity , the Union Budget, 2023-24  will ensure  inclusive growth  through Saptarshi-7 priorities.
 
I strongly believe that the increased Capital investment outlay  by 33.4% to 10 lakh crore, the highest ever outlay of Rs. 2.4 lakh crore for the Railways , identification of 100 infrastructure projects  for end-to-end connectivity for ports ,coal, steel, fertilizer sectors will  give fillip to the  industrial development of the country . Besides,  continuation of the provision for 50-year Interest Free Loans to States to be spent on capital expenditures , focus being on infrastructures, is expected to be a  game changer in the whole infrastructure development sector to the benefit not only of  the steel industry alone but also the industry across sectors as a whole.          
 
Moreover, simplifying tax benefits for industry in terms of enhanced limits for micro enterprises and professionals to avail benefits of presumptive taxation as well as provision for allowing deduction of payments made to MSMEs only when payment is made, and benefits provided for the start-ups will accelerate country’s economic growth.
 
In fine, it’s a people-centric budget for the improvement of the quality of life of all sections of the people. We wholeheartedly  appreciate this Union Budget, 2023-24.”

Gopichand P. Hinduja, Co-Chairman, 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.
 
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.”

Allan Kjaer Andersen, Director and Principal, Chaman Bhartiya School 
“It's crucial to realize that teaching is a skill that develops through time and well-structured teacher development programs which are in tandem with the teaching learning requirements of the schools. They have a great role to play in the students’ performance and development. This training is critical to implementing the visions of NEP. It is a positive outcome that the budget has prioritized the training programmes and plans to revamp teacher training.
Creating a National Digital Library for children and adolescents is also an essential step towards narrowing the digital divide in India. This will make information available and accessible to all throughout languages and genres. This initiative is immensely commendable as this will act as a catalyst for building a culture of reading, creating age appropriate financial literacy and to make up for pandemic time learning loss.”

Sudhir Pai, CEO Magicbricks.
“The Union Budget 2023 is a bonanza for affordable housing, with the strategic decision to increase outlay for Pradhan Mantri Awas Yojana (PMAY) by 66%! This decision provides the much-needed impetus towards the vision of "Housing for all". Further, with a 33% increment in infrastructure outlay, the Government is facilitating economic growth through job creation and investments which have direct and indirect impact on the real-estate sector. It is also heartening to see that the government is maintaining its focus on furthering urbanization initiatives, especially with the outlay of INR 10,000 crores per annum for an Urban Infrastructure Development Fund (UIDF) for tier 2 and tier 3 cities. This would certainly give the required boost to the real-estate markets in these cities, which have emerged as real estate growth engines in the past few years. 2022 saw a year-on-year increase in residential demand in cities like Bhubaneswar (12%), Coimbatore (27%), Jaipur (5%), and Nagpur (66%), amongst others, and this initiative will further elevate the livability index and appeal of these cities. Overall, the Union Budget is definitely positive and growth oriented for the real-estate sector”
 
 
LVLN Murty, CEO, Dvara KGFS, Chennai
I congratulate the government for presenting an inclusive budget and underlining the fact that MSMEs are the growth engines of our economy. We welcome the move to enhance turnover limits to Rs 3 crores and Rs 75 lakh respectively for micro enterprises and certain category of MSME professionals to be eligible for presumptive taxation.  The Finance Minister’s announcement about a revamped credit guarantee for MSMEs effective from April 1st, 2023, through infusion of Rs 9000 Crore in the corpus is sure to help the ecosystem and open up more credit lines for MSMEs. This will also help NBFCs to bring cost-effective credit underwritings, especially for small borrowers and help to conclude end-to-end digital processing efficiently with standard checks and balances with shorter turnaround time. Focus on sector specific skilling and entrepreneurship development will help rural women gain financial independence. Rural women will stand benefitted if more awareness is created about the opportunities available and about the schemes of the government to support them. Simplification of KYC and making PAN the single identifier for all financial transactions will also help NBFCs like ours to push for financial inclusion across our rural markets.
 
Nirav Dalal, Executive Vice President- Business Development and Chief Investment Officer, Shapoorji Pallonji
“We welcome the measures announced by Finance Minister Smt. Nirmala Sitharaman in the Union Budget 2023–24, which indirectly aims to boost the real estate sector's growth while also providing relief to consumers. The proposed increase in the income tax exemption limit to Rs 7 lakh will help boost real estate investment. This tax break will encourage homebuyers to invest more while simultaneously increasing revenue. Meeting the long-standing demand of the real estate sector, the cap deduction for capital gains on residential housing investment is set at INR 10 crore, which will undoubtedly benefit the real estate industry. As one of the important measures to support the market, there has been a 66% increase in the allocation to 79,000 crores in the Affordable Housing Fund (PMAY). The budget also has an emphasis on developing smart cities. The budget has allocated the Urban Infrastructure Development Fund (UIDF), which will be managed by the National Housing Bank and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities. The infrastructural development in these untapped markets will help the development of real estate here."
 

Paavan Nanda, Co-Founder, WinZO games.
"It’s heartening to witness TDS for Online Gaming finding significant mention in this year’s Union budget presented by the Hon’ble Minister. The proposed changes lend clarity to the Gaming companies, while creating an airtight accounting system for the exchequer. Aligning it with a player’s Net Winnings in a Financial Year seems like a just provision for the 500MM online gamers in India. Recognising and carving out a separate clause in the act for ‘Online Gaming’ as against gambling or betting is in line with Meity’s recent draft amendment to IT rules for Online Gaming, and is a testimony to the government's genuine intent to nurture the burgeoning sector. The single most important aspect that the sector awaits clarity on and something that would decide its fate is the outcome from GoM on the GST. We are hopeful that the outcome would retain the current 18% tax slab on gross gaming commissions, and promise to overachieve the $10Trillion economy goal by our Hon’ble Prime Minister well before 2030".
 
R Jeswant, CEO of Funskool India Ltd.
“The increase in basic Duty on Toys and parts of Toys (other than parts of electronic toys) to 70% is a boost to Domestic Manufacturers and will help in India developing into a manufacturing hub for toys, as envisaged by our Prime Minister.”
 
Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance
“In today’s Union Budget, the government has announced that from April 1st onwards, income from life insurance policies (other than ULIPs), with an aggregate premium amount of Rs. 5 lakh p.a. or more, which was earlier tax-free will now be taxable. However, in case of the unfortunate death of the insured person, the death benefit will continue to remain tax-free.
This move is similar to the proposal introduced by the government a couple of years ago which imposed tax on the maturity amount of ULIPs if the aggregate premium exceeded Rs. 2.5 lakh p.a. 
This proposal is likely to dent the sales of non-par products which has been witnessing strong growth over the last few years, especially during the pandemic. As the cap of Rs. 5 lakhs is applicable for all life insurance policies across insurers, it may deter individuals from purchasing additional policies if they have exhausted their limit with their primary insurer.”
 
Ruchir Arora, CEO & Co-Founder, CollegeDekho
“The Budget of 2023-24 presented by the Hon’ble FM brings some positive news for the education sector. We welcome the government’s massive push to accelerate the education sector with an allocation of ₹1,12,898.97 crore, which is the highest-ever allocation of funds granted to this sector. The establishment of 157 new nursing colleges and the introduction of new programmes in training in medical equipment are significant steps in bridging the skill gap in the medical and pharma sector and we expect demand for more such courses in the coming future. The government’s announcement for Kaushal Vikas Yojana 4.0 is aligned with the Industrial Revolution 4.0 with a major focus on advanced technology, research and innovation-based education. This includes the establishment of 30 Skill India International Centers, offering cutting-edge programs in fields such as coding, AI, IOT, mechatronics, drones, and the enhancement of various soft skills. Also, the numerous infrastructural developments, green growth and financial initiatives proposed in the budget will see an increase in employment opportunities in these sectors. We feel this opens up multiple new career opportunities for students and pursuing courses like BSc in either Agriculture or Forestry, Chartered Accountancy and Master in Integral Logistics to name a few might be plausible. On the whole, the budget is progressive and concentrates on enhancing the skill development of Indian youth which will further propel their employability and lead to overall economic growth.”
 
Vaidyanathan V, CFO, Great Lakes Institute of Management
“We welcome the measures announced by the finance minister in the Union Budget 2023.  Setting up of the National Digital Library for children and adolescents will up their knowledge and prepare them for competition at a global level. Emphasis on physical libraries at panchayat and ward levels will make knowledge accessible to children in rural areas and will also open doors for their development. We laud the government's efforts to come up with three centers of excellence for Artificial Intelligence which are to be set up in top educational institutions. The government's efforts to recruit more teachers for 740 Eklavya Model Residential Schools is appreciated. However, it is a disappointment that there were no specific announcements for the higher education sector.  Research in the higher education sector needs the government's support which in turn can act as a catalyst for India's growth. We hope the government opens channels for collaborative working with private institutions as well, to create global managers.”

Venkatram Mamillapalle, Country CEO & Managing Director, Renault India
“The budget has laid special emphasis on the Vehicle Scrappage Policy which will not only boost the sales but will also enable in achieving clean and green environment for overall sustainable development. Additional, funds infusion in the scrappage policy is a remarkable step and is in the right direction to achieve India’s goal of being carbon neutral by 2070. This policy would eventually help the entire eco-system of automotive industry as this will translate into growing orderbooks of OEMs, increased output and job creation.
Another significant announcement made by the government on the customs duty exemption being extended to capital goods and machinery required for the manufacturing of lithium-ion batteries used in EVs. This step is a boost for companies that are / would be manufacturing electric vehicles locally as it will help reduce the cost of EVs.
The automobile industry will witness an increase in sales with the introduction of new tax rebate limit on personal income which has been raised from INR 5 lacs per annum to INR 7lacs per annum. This step is likely to help the sector as more disposable income with salaried customers may give supplementary push to demand for personal vehicles.”

R. Udayan Lahiry, Co-founder & Managing Director, Medica Group of Hospitals Pvt Ltd
"We welcome the Government's emphasis on establishing new nursing colleges, as this will improve the nurse-patient ratio and be a positive step toward Universal Health Coverage. Furthermore, making medical research facilities in select ICMR Labs available for research by public and private medical colleges, as well as by the private sector R&D teams for collaborative research and innovation is also a welcome step towards the growth and development of the Indian healthcare sector. It is also encouraging for healthcare service providers to know that the Government has emphasized strengthening the multidisciplinary courses for medical devices in existing institutions since we feel that this will secure the supply of skilled manpower of the future to drive technological advancements in the healthcare sector. Also, the renewed focus of the Government to eliminate Sickle Cell Anemia by 2047 through collaborative efforts of central ministries and state governments is extremely relevant today as it coincides with our country’s firm motto of eliminating infectious diseases like lymphatic filariasis by 2027,.tuberculosis by 2025 and Kala Azar by this year itself. Overall, the union budget has captured a lot of pertinent areas of the healthcare sector and it would have been even more beneficial for the sector if the government would have addressed the mechanism to avail GST input credit."
 
Shivaji Waghmare, CEO, Fuji Electric India Pvt. Ltd:
“I think Budget 2023 is growth-oriented and it strikes a balance between economic growth and social welfare. It is great news that the budget has provided Rs 35,000 crores priority capital investment towards energy transition and net zero objectives, and energy security. We appreciate the move to extend customs duty exemption to the import of capital goods and machinery required for manufacturing of lithium-ion (Li-ion) cells for batteries used in EVs. This would reduce the production cost and lower the cost of EVs. Manufacturing credit guarantee scheme for MSME is another laudable step. Youth have to be skilled to compete in Industry 4.0 and a lot of measures are being taken to make Indian youth market-ready. More skilling centres would mean more technicians who are very important for industries like us. Reducing the cost of compliances will help reduce the overall cost for the businesses which is a welcome thing. India is going all out to embrace digitalization and also ensure that every segment of its population is taken along in its run towards realising its dream.  The increased spends India Railways is a welcome step. I am glad that consumption is being promoted and economy is being revived.”