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Economic Times | 25 Jan, 2023 | 11:37AM IST
Budget 2023 Expectations Live Updates: Sitharaman's February 1 address expected to focus on job creation
Union Budget 2023 Expectations Live Updates: Analysts expect the forthcoming Union Budget to focus on job creation.
B. Gopkumar, MD & CEO, Axis Securities said as this is the last full-year Budget before the Union Election in 2024, it is expected to be growth-oriented.
The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing, Gopkumar said.
Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation.
FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action, Gopkumar said.
Anmol Das, Head of Research, Teji Mandi said, "With so many industries putting up demands for incentives for their individual sectors, we expect the FM to present a much expansionary budget with major impetus on infrastructure, manufacturing, defence and Export driven businesses. While these subjects will fulfil the business sentiments for increasing the gravity of India as an Investment destination, viewing the next year elections, FM Sitharaman may give some respite in the Tax Slabs and Exemption limits for direct taxes," Das said.
Apart from these general expectations, other focussed areas will be Disinvestment targets not met over last several years, highly demanded in investment circles - change in durations of Capital Gains Tax, incentives for EV Charging station network development, incentives for initial encouragement for companies in Defense sectors for kick-starting indigenization of import banned equipments & ammunitions, etc.
Amar Ambani, Group President and Head, Institutional Equities, Yes Securities said, "Even though expenditure for FY23 will likely surpass the budgeted numbers, the math will be under control due to the buoyancy in tax collections".
B. Gopkumar, MD & CEO, Axis Securities said as this is the last full-year Budget before the Union Election in 2024, it is expected to be growth-oriented.
The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing, Gopkumar said.
Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation.
FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action, Gopkumar said.
Anmol Das, Head of Research, Teji Mandi said, "With so many industries putting up demands for incentives for their individual sectors, we expect the FM to present a much expansionary budget with major impetus on infrastructure, manufacturing, defence and Export driven businesses. While these subjects will fulfil the business sentiments for increasing the gravity of India as an Investment destination, viewing the next year elections, FM Sitharaman may give some respite in the Tax Slabs and Exemption limits for direct taxes," Das said.
Apart from these general expectations, other focussed areas will be Disinvestment targets not met over last several years, highly demanded in investment circles - change in durations of Capital Gains Tax, incentives for EV Charging station network development, incentives for initial encouragement for companies in Defense sectors for kick-starting indigenization of import banned equipments & ammunitions, etc.
Amar Ambani, Group President and Head, Institutional Equities, Yes Securities said, "Even though expenditure for FY23 will likely surpass the budgeted numbers, the math will be under control due to the buoyancy in tax collections".
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Stock market investors expect balanced budget, focus on job creation, infra spending
Stock market investors are expecting a balanced Budget with a focus on job creation, increased spending on infrastructure, reigning in the deficit, and bringing the economy back on track, experts said on Wednesday.
Stock markets have been subdued in the run-up to the Union Budget with BSE's benchmark Sensex is almost flat so far this month. Even the corporate earning season failed to excite the markets, while some indices like IT and bankex have seen some positive movements.
The muted performance of the markets could be due to Foreign Portfolio Investors (FPIs) moving funds out of India as they are looking for emerging markets with cheaper valuations. They have taken out over Rs 16,500 crore from domestic equities so far this month.
Moreover, inflation and possible global recession continue to play on investors' minds.
Narendra Solanki, Head- Equity Research Anand Rathi Shares & Stock Brokers, said that investors are expected to remain focused on three key factors from the pre-election year Budget 2023, firstly equity investors are expecting a uniform tax structure for capital gains which might help taxpayers to have more disposable income.
Secondly, investors will be looking for fiscal consolidation which is necessary for financial stability in the economy and thirdly, investors are contemplating policy reforms to rationalise bottlenecks for growth such as subsidies, a clear roadmap for disinvestment targets and expediting the much-awaited PSU privatisation or consolidation, he added.
Stock markets have been subdued in the run-up to the Union Budget with BSE's benchmark Sensex is almost flat so far this month. Even the corporate earning season failed to excite the markets, while some indices like IT and bankex have seen some positive movements.
The muted performance of the markets could be due to Foreign Portfolio Investors (FPIs) moving funds out of India as they are looking for emerging markets with cheaper valuations. They have taken out over Rs 16,500 crore from domestic equities so far this month.
Moreover, inflation and possible global recession continue to play on investors' minds.
Narendra Solanki, Head- Equity Research Anand Rathi Shares & Stock Brokers, said that investors are expected to remain focused on three key factors from the pre-election year Budget 2023, firstly equity investors are expecting a uniform tax structure for capital gains which might help taxpayers to have more disposable income.
Secondly, investors will be looking for fiscal consolidation which is necessary for financial stability in the economy and thirdly, investors are contemplating policy reforms to rationalise bottlenecks for growth such as subsidies, a clear roadmap for disinvestment targets and expediting the much-awaited PSU privatisation or consolidation, he added.
Pre-Budget 'halwa' ceremony set for tomorrow
A customary Halwa ceremony will be performed before the “lock-in” process of officials involved in Budget preparation in the presence of Union Finance & Corporate Affairs Minister Nirmala Sitharaman tomorrow. The ceremony marks the final stage of preparing the Union Budget. The Finance Minister begins the ceremony by stirring the halwa in the kadhai and then serves it to their colleagues at the Ministry's headquarters in Delhi.
The government has initiated PLI schemes for the Air Conditioner and Electronics sectors to promote local manufacturing of consumer durables. This has led to investments in design and manufacturing by the OEMs as well as component manufacturers. We welcome more of such supporting measures for other categories of durables including white goods, furniture and other products. It will foster the development of the eco-system for component manufacturers in the industry. Additional measures to support exports of durables through Trade Pacts with nations in Asia and Africa will provide a further boost to the sector
- Anil Verma, Executive Director & CEO, Godrej & Boyce
Budget 2023 expectation for EVs
"The push for EV is generating investments in the sector with a number of new entrants to serve the market. It will greatly reduce our dependence on oil imports while delivering against our commitments towards reducing global warming and creating a sustainable economy. However, the success of this will depend upon the creation of an enabling environment through the development of a vehicle charging infrastructure as well as cheap and reliable supply of electricity. Today a large part of the progress in EVs has been on personal mobility with 2 and 4 wheelers. This has to be commercially extended to the transport sector," says Anil Verma, Executive Director & CEO, Godrej & Boyce
Mutual Funds industry expectations from Budget 2023
"An area that I feel needs attention is that the government needs to provide clarity and some leeway in International Fund of Funds category, which has gained immense traction lately. There is a cap of $7 billion on total investments by mutual funds in foreign funds. There is a separate limit of $1 billion to invest in foreign Exchange Traded Funds," says Ajit Menon, CE of PGIM India Mutual Fund.
"The government should consider having an open limit to cap the total investments by mutual funds in foreign funds at 10% of equity assets of the industry given that demand for such funds is on the rise. International FoFs are an ideal vehicle for domestic investors to get international diversification, which can be up to 10% of investors’ portfolio allocation," Menon adds.
"The government should consider having an open limit to cap the total investments by mutual funds in foreign funds at 10% of equity assets of the industry given that demand for such funds is on the rise. International FoFs are an ideal vehicle for domestic investors to get international diversification, which can be up to 10% of investors’ portfolio allocation," Menon adds.
Budget 2023 News Live Updates: Reduce gold import duty to curb smuggling, says Malabar Gold Chairman
The organized gold jewellery retailers are urging the finance minister to cut gold import duty in the Union Budget 2023-24 as any reduction in duty will help curb gold smuggling, boost exports of gems and jewellery, and empower organised jewellery retailers to cash in on the surging domestic demand. Emphasizing the industry's views, Malabar Gold & Diamonds founder and chairman M.P. Ahammed says India needs a robust gold policy that rationalises import duty and the gold retailers are expecting a favourable decision from the Centre in this regard.
"Liberalizing imports will boost the organised domestic jewellery business," says Ahammed. He believes that the domestic gold demand, especially in rural India, is robust and rationalising import duty and standardising domestic gold prices across the country will further increase consumption.
"The import duty reduction will act as a growth multiplier for the gems and jewellery industry as it will boost growth in jewellery exports and drive up retail gold sales, which will eventually boost the government's tax collections," he said.
"Liberalizing imports will boost the organised domestic jewellery business," says Ahammed. He believes that the domestic gold demand, especially in rural India, is robust and rationalising import duty and standardising domestic gold prices across the country will further increase consumption.
"The import duty reduction will act as a growth multiplier for the gems and jewellery industry as it will boost growth in jewellery exports and drive up retail gold sales, which will eventually boost the government's tax collections," he said.
Budget 2023 News Live Updates: Railway Ministry sets in motion Rs 2-trillion budgetary push
The people have high expectations from the Rail Budget as the Union Finance Minister Nirmala Sitharaman will present her fifth Budget on February 1.
In its first term, the Modi government at the Centre had linked the Rail Budget with the General Budget, under which the money for the Railways is now provided. According to the information, the Centre is going to increase the Railway Budget this time by up to 20 per cent.
Earlier, in the pre-Budget meeting, the Railway Board demanded 25-30 per cent more funds in the allocation of the Finance Ministry.
In such a situation, the government can give a fund of about Rs 2 trillion to the Ministry of Railways in the Budget leading to an atmosphere of enthusiasm in sectors related to the Railways. There have also been various demands from the passengers.
In its first term, the Modi government at the Centre had linked the Rail Budget with the General Budget, under which the money for the Railways is now provided. According to the information, the Centre is going to increase the Railway Budget this time by up to 20 per cent.
Earlier, in the pre-Budget meeting, the Railway Board demanded 25-30 per cent more funds in the allocation of the Finance Ministry.
In such a situation, the government can give a fund of about Rs 2 trillion to the Ministry of Railways in the Budget leading to an atmosphere of enthusiasm in sectors related to the Railways. There have also been various demands from the passengers.
Budget 2023 News Live Updates: India in top gear in its drive to achieve ambitious 2030 milestones
Despite some initial hiccups, the EV penetration in India is slowly but steadily increasing, especially in the e-scooter segment. Now, the four-wheeler manufacturers have also joined the bandwagon, pushing Indias aim to significantly cut the dependency on traditional fuels and internal combustion engine-driven vehicles by 2030.
By 2030, the government expects the EV sales penetration to be 30 per cent for private automobiles, 70 per cent for commercial vehicles, and 80 per cent for two and three-wheelers, which would not only reduce the country's oil import bills in the longer term, but also ensure a cleaner environment.
The sales of electric vehicles (EVs) in the country witnessed a surge in the last two years. While 48,179 EVs were sold in 2020-21, the figures increased to 2,37,811 in 2021-22 and 4,42,901 in 2022-23 (till December 9, 2022).
Union Minister for Heavy Industries, Mahendra Nath Pandey, said in a written reply in the Lok Sabha last month that the ministry has implemented a scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II' (FAME India Phase II) to promote adoption of electric/hybrid vehicles in the country.
By 2030, the government expects the EV sales penetration to be 30 per cent for private automobiles, 70 per cent for commercial vehicles, and 80 per cent for two and three-wheelers, which would not only reduce the country's oil import bills in the longer term, but also ensure a cleaner environment.
The sales of electric vehicles (EVs) in the country witnessed a surge in the last two years. While 48,179 EVs were sold in 2020-21, the figures increased to 2,37,811 in 2021-22 and 4,42,901 in 2022-23 (till December 9, 2022).
Union Minister for Heavy Industries, Mahendra Nath Pandey, said in a written reply in the Lok Sabha last month that the ministry has implemented a scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II' (FAME India Phase II) to promote adoption of electric/hybrid vehicles in the country.
Budget 2023 News Live Updates: As country heads for polls, Budget may rain sops on farm sector
Mindful of the fact that the farmers community needs to be mollified after its year-long agitation against the three controversial farm laws, the government is likely to focus on boosting the agriculture sector in the Union budget for 2023-24, which would be presented by finance minister Nirmala Sitharaman on February 1.
The agriculture sector has always been seen as a sector which has a potential of generating lots of revenue and according to a report by Deloitte India, quoted recently in various sections of the media, it can generate more than $800 billion in revenue for the country with an investment of over $270 billion by 2031.
The report suggested that the government should introduce policies to support technology adoption for modernising operations in the agriculture space and give incentives to agri-tech startups for improving accessibility to small farmers.
The agriculture sector has always been seen as a sector which has a potential of generating lots of revenue and according to a report by Deloitte India, quoted recently in various sections of the media, it can generate more than $800 billion in revenue for the country with an investment of over $270 billion by 2031.
The report suggested that the government should introduce policies to support technology adoption for modernising operations in the agriculture space and give incentives to agri-tech startups for improving accessibility to small farmers.
Budget 2023 News Live Updates: Budget 2023 expected to focus on job creation
Analysts expect the forthcoming Union Budget to focus on job creation.
B. Gopkumar, MD & CEO, Axis Securities said as this is the last full-year Budget before the Union Election in 2024, it is expected to be growth-oriented.
The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing, Gopkumar said.
Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation.
FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action, Gopkumar said.
B. Gopkumar, MD & CEO, Axis Securities said as this is the last full-year Budget before the Union Election in 2024, it is expected to be growth-oriented.
The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing, Gopkumar said.
Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation.
FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action, Gopkumar said.
