Budget 2023 reactions: Indian biz sector says budget will push growth

NSE MD & CEO Ashish Kumar Chauhan called the Budget one of the best in years, with a focus on both infrastructure and job creation, while reducing income tax for pretty much everyone, and lots of money to states.

“The Budget would support growth and the Indian consumption story, keep us in good stead, given global headwinds in China and developed markets, and until the rest of the world eases,” he said.

Before the budget was presented, investors worried about a rise in capital gains, Chauhan said.

“No change there, has also created a positive reaction. Overall this is a very positive budget for the markets, with something for everyone. I give the Budget 10/10,” he added.

Axis Securities MD & CEO B Gopkumar said the Budget is extremely well-balanced focussed on growth driven by capital expenditure while giving an adequate push to rural welfare and agriculture.

Government borrowing is well-calibrated, and it is a significant positive, he said, adding that the fiscal deficit target of 5.9% indicates a considerable degree of prudence.

On top of this, relief to the middle class on the income tax front is the cherry on the cake. At this point, it is difficult to find any shortcomings. The budget has delivered on all the expectations very well, he said.

“In the short term, we expect the markets to move higher on the back of pro-growth measures announced in the budget and less fear of the government crowding out private investments due to fiscal prudence shown by the government.”

PropEquity Founder & CEO Samir Jasuja said the 66% increase in the allocation to Prime Minister Awaas Yojana to Rs 79,000 crores is a sure boost for affordable housing.

This is another step towards the government's 'Housing for All' mandate.

The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity, which will indirectly drive real estate growth over the next one year.

"Changes in income tax rates, including exempting income up to Rs 7 lakh under the new tax system and rates, will undoubtedly benefit the middle class. However, it remains to be seen whether the real estate sector will have a collateral boost,” he opined.

Yes Bank MD & CEO Prashant Kumar said the Union Budget attempts an inclusive growth structure for the economy through various measures that are expected to reach the last mile.

The effective capex of the Central government was enhanced to Rs 13.7 Lakh crores, or 4.5% of the GDP was an acknowledgment that capital expenditures are crucial for the economy and could boost the growth.

As the efficiency of capital expenditures is higher at the state level, the government once again earmarked Rs 1.3 lakh crores as a 50-year loan to States, which would incentivize capital expenditure.

ECLGS scheme continues with an additional Rs 9000 crore added to the corpus which would boost the fund flow for the MSME sector.

Tata Capital Ltd MD & CEO Rajiv Sabharwal said 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 Capex increase of 33% and a capital outlay of Rs 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.

MD & CEO Tata Cleantech Capital Limited Manish Chourasia said “Government is walking the talk when it comes to Net Zero commitment. Budget has taken bold steps in adopting new initiatives such as dedicated funds for energy transition and Green Hydrogen mission.”

In addition, the government has been proactive in identifying the need for storage systems to integrate the ambitious renewable energy capacity plans.

Both the Viability Gap Funding for Battery energy storage systems and framework formulation for Pumped Storage Projects will pave way for accelerated adoption of renewable energy.