Reactions from industry captains on announcements in the current budget that intend to boost consumption in the country
New Delhi: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023, the fifth budget of Modi 2.0 on February 1, 2023. In the last full-fledged Budget before the general elections next year, Sitharaman presented a budget that many consider could lead India onto the growth path of the future. Sitharaman announced major changes in tax slabs under the new tax regime that would put more money into the hands of the middle class and that brings cheers to many businesses from FMCG companies to retailers.
This Budget hopes to build on the foundation laid down in the previous Budget, and the blueprint drawn for India@100. “We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes,” said Finance Minister, Nirmala Sitharaman in her Budget speech.
She further added, “In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. Our current year’s economic growth is estimated to be at 7%. It is notable that this is the highest among all the major economies. This is in spite of the massive slowdown globally caused by Covid-19 and a war. The Indian economy is therefore on the right track, and despite a time of challenges, (is) heading towards a bright future.”
In a series of stories, IndiaRetailing brings you the opinion of leading industry experts on the Union Budget 2023. In the last article of the series, we feature reactions to announcements that intend to boost consumption in the country.
Arvind Mediratta,managing director andchief executive officer, Metro Cash & Carry India
The amount of inclusiveness in this budget from a medium to long-term perspective, especially given the global inflationary market, will help maintain fiscal discipline, lead to capacity building and help accelerate India’s growth prospects.
A lot of allocations have been made for the rural sector. This will spur consumption and boost growth towards achieving a $5 trillion economy.
Pradeep Bakshi, managing director andchief executive officer, Voltas Ltd.
The increase in the personal income tax rebate to Rs. 7 lakh will provide consumers with higher disposable income, helping them spend on improving their lifestyle through the purchase of desired appliances and other equipment for their households. We also believe that attention to customs duty for AC components and other high-demand consumer durables would help manufacturers reduce the cost of production and thereby increase consumer demand.
Rajit V. Shetty, managing director, Ramee Group of Hotels, Resorts & Apartments
The Union Budget 2023 has provided a much-needed boost to the Indian hospitality sector, which has been hit hard by the COVID-19 pandemic. The allocation of funds for the development of the tourism industry and the reduction in corporate tax rates for new businesses are expected to help revive the industry and create job opportunities for the youth. The budget has given a ray of hope to the Indian hospitality sector and will help it to bounce back from the impact of the pandemic.
Ravi Kapoor, Partner and Leader Retail & Consumer, PwC India
The Budget achieves the impossible of enhancing positive sentiments for all sections of society, thus, laying a well-structured roadmap for retail and consumer product (R&C) growth.
Income-tax slab optimisation for the middle class, focus on Bharat with a slew of initiatives, growth in non-farm employment with a focus on artisans and women, massive infrastructure push (both physical and digital), driving domestic consumption through tourism impetus, enabling ease of doing business with optimising legal compliances, and, lastly, motivating the R&C industry to invest in ‘green’ operating models will set the stage for demand and supply side momentum.
This will translate into personal consumption expenditure growth at accelerated levels, setting the sector growth for many years to come.
Tushar Parihar, founder, Kaner Bagh
The hospitality and tourism industry which plays a major role in the Gross Domestic Product (GDP) of the country was waiting for favourable policies and announcements in this budget after facing disappointment from the Centre in the previous budget. The allocation of huge capital expenditure and the innovative plan for the growth of the tourism and hospitality sector also holds huge opportunities for jobs and entrepreneurship for youths.
