MUMBAI, 4 FEBRUARY, 2023 (GPN): Finance Minister Nirmala Sitharaman presented the last full-fledged Union Budget of the Modi government before the 2024 Lok Sabha elections on 1 February 2023. The government sweetened the new income tax regime by making income of up to ₹3 lakh exempt from income tax. With a rebate, now people earning up to ₹7 lakh need not pay any income tax. The FM also simplified the tax structure and called it the “default income tax regime”.
Mr Rikant Pittie, Co-founder, EaseMyTrip
1) Mr. Rikant Pittie, Co-founder, EaseMyTrip
“One of the striking features of today’s Budget 23 announcement was the echoing of India’s global recognition as a powerhouse of entrepreneurship and innovation. This was mirrored in the government’s initiative to support the vibrant ecosystem by extending the date of incorporation for income tax benefits from 31 March 2023 to 31 March 2024. This will provide an opportunity for several startups to flourish, especially in the travel and tourism industry, which is yet to recover from the blows that were dealt during the pandemic. With the commencement of India’s Amrit Kaal, the future of India’s startup ecosystem appears bright, and the travel and tourism industry is all set to play a major role in the economy’s development.”
Mr. SP Jain, Chairman and Managing Director, Pride Hotels Limited
2) Mr. SP Jain, Chairman and Managing Director, Pride Hotels Limited
3) Dr. Rashmi Saluja, Executive Chairperson, Religare Enterprises
“MSMEs are growth engines of our economy. The Finance Minister has done a fantastic job in proposing the revamp of the existing credit guarantee schemes for MSMEs through a fresh allocation of Rs9,000 crore will enable relief for smaller entrepreneurs. It will reduce the cost of credit & enable further flow of credit into this stressed sector. The ‘Vivad Se Vishwas’ plan for MSMEs will provide much-needed relief. Also, a reduction in compliance and relaxation of regulatory provisions is a welcome move from ease of doing business perspective. There are many such measures proposed in the Union Budget that will provide fuel to the MSME segment – the potential engine of growth for India’s economy.
The creation of an Urban Infrastructure Development Fund (UIDF) to be managed by the National Housing Bank will help in creating essential housing infrastructure in Tier 2 and Tier 3 cities. . Affordable & green housing will now get their rightful due in India’s real estate firmament. In addition to this, it is a tremendous initiative by the government to increase outlay by 66% to Rs 79,000 crore. This will improve the sentiments for all the relevant stakeholder.
The FY24 Union Budget pushes forward India’s Atmanirbhar vision. We are confident that it will herald a truly glorious Amrit Kaal for the country. “
Mr Venkatraman Venkateswaran, Group President & CFO, Federal Bank
4) Mr. Venkatraman Venkateswaran, Group President & CFO, Federal Bank
“Budget 2023-24 is an Infrastructure Spending oriented budget with 7 priorities set by the FM. The budget unveiled tax cuts and set the virtuous cycle of job creation. Out of the overall growth agenda, specifically looking at Banking sector, there are two major proposals. Firstly on Agricultural credit, the target is hiked to Rs.20 Lakh crore, which will help drive rural growth. Additionally, the revamped credit guarantee scheme for MSMEs, with infusion of Rs 9000 crore into the corpus, will enable additional collateral free credit guarantee of Rs 2 lakh crore”.
Mr. V P Nandakumar – Managing Director & CEO of Manappuram Finance Ltd
5) Mr. V P Nandakumar – Managing Director & CEO of Manappuram Finance Ltd
“The key announcements around the MSME sector are likely to help the self-employed and small businesses. High focus on firming up digital infrastructure and capital expenditure will have a snowballing effect on employment generation and new business opportunities. Also, the Union Budget has given freedom of choice to the salaried class and professionals by making the new tax-regime as the default and increasing the taxable slab above Rs 7 lakh, and proposing to reduce the highest surcharge rate from 37% to 25% under the new tax regime. In my view, these measures will go a long way in sustaining the `India growth story’ by increasing the momentum in private consumption, which incidentally contributes to approximately 60% of the GDP and its growth, by ringing in fresh demand in the economy. On the other hand, it may also lead to a higher household savings rate in financial assets, which is very important for sustaining the overall economic growth of the country.”
Mr. Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance Company Ltd.
6) Mr. Rushabh Gandhi, Deputy CEO, IndiaFirst Life Insurance Company Ltd.
” Rationalization of the Income tax slabs and of the peak tax rate will result in higher disposable income in the hand of the individuals. This will help boost financial savings and have a direct benefit to insurance sales. The insurance regulator’s mission of “Insurance for all by 2047” will get a further boost because of the exemption of stamp-duty on PMJJBY. This exemption will reduce the burden on life insurers sourcing PMJJBY policies and prompt them to procure incremental business. Finally, it has been proposed that, effective 01st April 2023, if the premium on a non-ULIP policy exceeds Rs. 5 Lakh, then it will be taxable under “Income from Other Sources”. For IndiaFirst Life, non-ULIP policies exceeding Rs. 5 Lakh of premium has a single digit contribution to our overall business and the impact is expected to be muted.”
Mr. Murali Ramakrishnan MD and CEO of The South Indian Bank
7) Mr. Murali Ramakrishnan MD and CEO of The South Indian Bank
” This year’s Union Budget is noteworthy on a number of counts. Effective implementation of schemes like opening of 47.8 crore PM Jan Dhan bank accounts will benefit common citizens. With the establishment of the Urban Infrastructure Development Fund (UIDF), we expect infrastructure in tier 2 and tier 3 cities receiving a significant boost. The enabling of the Digital locker for MSMEs for securely storing and sharing documents online with various authorities, regulators and other entities will encourage seamless business.”
Mr. Roopam Asthana, Whole Time Director & CEO, Liberty General Insurance
8) Mr. Roopam Asthana, Whole Time Director & CEO, Liberty General Insurance
“The Indian Union Budget for 2023 is a “saptarishi” budget which focuses on capex and consumption with knock on positive impact on employment generation. India’s economy is set to grow at 7%, making it the highest among major economies, reflecting the government’s efforts towards better quality of life combined with significant progress towards development goals. Across many pronouncements, the importance of digitization in building the country is clearly visible.
The budget aims to build on the foundation laid in previous budgets and the blueprint for India@100, solidifying further, India’s position as a shining star in the world economy. The fiscal deficit target of 5.9% with a promise to reach 4.5% by 2025-26 and the emphasis on consumption-led spending through income tax cuts shows government’s commitment to well-rounded growth.”
9) Mr. Saiyam Mehra, Chairman, All India Gem and Jewellery Domestic Council (GJC)
“We thank Honourable FM Shri Nirmala Sitharaman ji for presenting a well-balanced Union Budget 2023-24, focused on the spirit of Amrit Kaal. Key announcements such as Income tax- rebate extended on income up to Rs 7 lakhs in new tax regime, increase in outlay of PM Awaas Yojana is a big relief for the middle-income group. However, the Gems & Jewellery Industry’s critical concerns are not addressed in the Union Budget 2023-24. While the Research and Development grant will be provided to one of the IITs for the development of Lab Grown Diamond seeds and machines, the other sectors of the industry have been ignored. The reduction in Gold Custom Duty in this Budget was our big expectation, which has severely hampered the industry and encouraged smuggling and grey market. GJC has been actively representing the reduction in customs duty of Gold over past many years. However, the Silver Dore Bars Custom Duty has been brought at par with Gold and platinum in this budget. This move will adversely affect the masses. GJC will continue to represent this important issue of the Industry. We are having a meeting with Honourable FM on 4th February at Mumbai, in which we shall once again stress upon the important concerns such as reduction in custom duty, EMI on Jewellery, Relief in Capital Gain tax and Gold Monetisation Scheme etc.”
10) Mr.Rajesh Rokde Vice Chairman
All India Gem and Jewellery Domestic Council (GJC)
“While the Honourable FM has presented a well-balanced budget and revision in Income tax is a welcome move. The Gems & Jewellery Industry is deprived of their key budget recommendations such as Reduction in Gold Custom Duty, EMI on Gold Jewellery, Reduction in credit card commission levied by banks and many more issues are not highlighted in the Union Budget 2023-24. Gems & jewellery industry plays a very pivotal role in our nation’s GDP and we shall continue approaching the Ministry as this industry needs special attention towards our concerns and provide reliefs for the progress of the Industry.”
Mr. Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital
11) Mr. Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital
“The demand of NBFCs from the finance minister was to advance hassle-free credit access and the government has given a much-needed boost to the MSME sector. An allocation of Rs. 9000 crore for the credit guarantee revamp scheme starting April 1, 2023 will give a big relief to MSMEs in the current inflationary conditions. Presumptive taxation for micro-enterprises with a turnover of Rs. 2 crores, unified filing process, entity-based Digi lockers, and formation of National Financial Information Registry will enable better underwriting of credit to MSMEs. It will help Datatech NBFCs like us bridge the needs of India’s credit-starved business segment. The government has provided the financial sector much-needed momentum, however an active liquidity support system for NBFCs still remains a request.”
12) Mr. Mahankali Srinivas Rao (MSR), CEO, T-Hub.
“The Union budget’s elaborate focus on building a digital economy and technology-enabled development is extremely encouraging. As mentioned during the budget start-ups have emerged as growth drivers for our economy showcasing the immense potential of India’s start-up ecosystem. It’s evident from the government’s decision to extend the date of incorporation for income tax benefits from 31.03.2023 to 31.03.2024, which will empower the start-up sector, foster entrepreneurship significantly, and give rise to a new generation of founders. We thank the Govt. for extending the benefit of carrying forward losses on change of shareholding to 10 years of incorporation from 7 years, this will help start-ups adjust initial losses. Furthermore, government’s decision to set up Agriculture Accelerator Fund will encourage Agri-tech start-ups by young entrepreneurs in rural areas, this will bring innovative and affordable solutions for challenges faced by farmers and transform the traditional agricultural sector.
Initiatives like National Data Governance Policy, Skill India Digital Platform, and upskilling policies announced will address the industry-academia widening gap and nurture entrepreneurship at the grassroots level. We are also happy to note that the government had allocated Rs 283.5 crore for the Startup India Seed Fund Scheme and the budgetary allocations for the Fund of Funds for Start-ups stood at Rs 1,000 crore, this will help in nurturing innovation and encouraging private investments in the start-up ecosystem. The government has taken a series of steps to promote start-ups in the country, the budget highlights special incentives Under the Startup India initiative, Fund of Funds for Start-ups (FFS) scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Start-ups (CGSS) encouraging capital at various stages of the business cycle of start-ups. These initiatives will serve as a successful catalyst for the country’s economic growth. We are excited for India’s economic growth this year and looking forward to start-ups playing a pivotal role”.
13) Mr. Tarun Rustagi, Chief Financial Officer, Canara HSBC Life Insurance.
“The Union Budget 2023 continues to focus on overall development of India through digitization and creates more wealth generation opportunities for the middle-class families. Overall focus of this year’s budget announcement is on Capital Expenditure, Green initiatives, Manufacturing in India through rationalisation of custom duties on mobile phones and TV parts etc are all going to boost overall economy. On individual taxation perspective budget is trying to move towards simplified regime by providing more benefits under New Taxation Regime, however from Life Insurance need for everyone and from sector’s perspective, expectations are not addressed as expected”
14) Karan Rathore, Vice Chairman, of the Services Export Promotion Council
“Travel and tourism is one of the most crucial sectors that contributes to the GDP of our country. All relevant aspects such as high standards for food streets, physical connectivity, virtual connectivity, tourist guides, and tourist security, would be made available on an app to enhance the tourist experience. Every destination will be developed as a complete package. This will not only support the tourism industry but also offer huge opportunities for jobs and entrepreneurship for youth in particular.”
15) Mr. Pradeep Shetty, President, Hotel and Restaurant Association of Western India (HRAWI)
“The fact that Tourism got attention in the Union Budget is a big welcome. The Hon’ble FM recognized the country’s potential for domestic as well as foreign tourists and the huge opportunities the sector holds for jobs and entrepreneurship. The Hon’ble FM stressed on promoting tourism on mission mode, with the active participation of States, the convergence of Government programmes and public-private partnerships. This is especially good news for regional tourism and hospitality. Developing new airports, heliports, water aerodromes and advanced landing grounds to improve regional connectivity will unlock the vast potential for growth in the Western region of India. An integrated and innovative approach through challenge mode will be a game changer for the destinations in the Western region selected through this route. The Unity Mall initiative too is a great step in the right direction that encourages States to promote regional tourism and sale of their own ODOPs (one district, one product), GI products and other handicraft products. The Credit guarantee scheme for MSMEs with an infusion of Rs.9000 Cr into the corpus is expected to help small and medium-scale hotels and restaurants.”
16) Mr. Ritesh Agarwal, Founder & Group CEO, OYO
17) Mr.VishalSuri, Managing Director, SOTC Travel LimitedThe Union Budget 2023-24 presented by Hon’ble Finance Minister provides a positive focus on infrastructural development/investment, digital enhancements, sustainability, agriculture, domestic tourism. We appreciate the Government’s plan of continued focus on domestic tourism, railways, new airports, heliports, water aerodromes that will improve regional connectivity and be one of the key drivers of the domestic tourism sector.
Further the announcement on the launch of an app to enhance domestic tourism experience reiterates our country’s focus on digitization. The ‘Dekho Apna Desh’ initiative focusing on sector specific skilling and entrepreneurship development while the facilitation of tourism infrastructure under the Vibrant Villages Programme, and setting up a ‘Unity Mall’ in state capitals/ popular tourist destinations to promote ‘One District, One product’ for GI products and other handicrafts will strongly support domestic tourism.
The travel & tourism industry supports one in 10 jobs and provides livelihoods for a significant number of people, therefore the Government’s support on prioritizing tourism with active participation from local authorities, sustainable practices and encouraging public-private partnerships is a positive pivot towards revival/road to recovery.
However this Union Budgetdid not provide the travel & tourism industry the respite we anticipated with respect to rationalization of taxes. Instead the proposals increased TCS on outbound travel and other LRS transactions from 5% to 20% without any threshold exemption. In our view, such high rates of taxation are an added liability to outbound travelers and negatively impacts tour operators recovering from the pandemic. We request the Government to reconsider this proposal.
We also hoped this budget would offer elimination of the 5 crore capping for the SEIS benefit and incentives to Corporates for organizing meetings and conference in India through partial or full tax exemptions.”
18) Mr. Akaal Singh Manchanda, Founder & Director of Operations, Zuper Hotels & Resorts
The hospitality industry plays a significant role in India’s economy. Needless to say, the industry was majorly hit hard during the pandemic. As India is becoming one of the new tourist stations, the boost to the tourism sector will help attract more foreign visitors which will spur the hospitality sector.
The push from the government for the launch of mission mode in 50 tourist destinations can lead to a boom in business and sales in these regions. This will help the entire sector of ‘Travel Tourism & Hospitality’ survive, revive, and economically support India in its quest to become the world’s largest hub. The ‘Dekho Apna Desh’ scheme is a great initiative to propel travellers within their own country and will foster domestic tourism.
Additionally, as tourism employment contributes a substantial stairway to the total economy, this move will further stimulate the hotel franchises to scale up their operations in these regions and thereby creating more job opportunities.
19) Mr. Raoof Dhanani, Managing Director, Sayaji Hotels
Budget 2023 has been revolutionary in its efforts to give relief to every sector. Opportunity for job creation and entrepreneurship in the tourism sector is the need of the hour. Developing a package for domestic and international tourism out of 50 tourist destinations is a great start.
Revival of fifty additional airports, water aerodromes, advanced landing grounds and heliports will help in enhancing regional air connectivity in the country.
Along with these measures GST reduction was also expected which unfortunately was missed.
20) Mr. Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels Limited and Co-Chairman of the CII National Committee on Tourism & Hospitality
“The budget demonstrates India’s rising global profile and sets the trajectory to be the third largest economy by the end of the decade.
The government has remained focused on the path of fiscal prudence reducing the fiscal deficit from 6.4% in FY 22/23 to 5.9% in FY 23/24. Strong focus on infrastructure development with outlay being increased from 7.3 lakh crores to 10 lakh crores and at 3.3% of the GDP will drive growth and generate employment.
On tourism, the budget fails to meet industry expectation on being granted infrastructure status and rationalisation of taxes. Increase in tax collection at source for overseas tour packages from 5% to 20% is also a negative and will hit the tour and travel industry especially since the industry has just reconnected from the pandemic.
However, setting up 50 new airports and heliports and 50 new tourist destinations to drive domestic and international traffic is a welcome step.
Overall the budget is inclusive and will inspire investors, tax payers, farmers and the common people.”
21) Mr. Jaison Chacko, Secretary General, Federation of Hotel & Restaurant Associations of India (FHRAI)
“It’s encouraging to note that the Union Budget has recognized the immense potential of the Tourism sector in the country to be tapped. The announcement of the Hon’ble Minister that promotion of tourism will be taken up on mission mode, with active participation of States, convergence of Government programmes and public-private partnerships is an extremely crucial announcement and the industry believes that this will benefit the sector in the long term. The Unity Mall, other tourism promotion initiatives through States and the development of 50 tourism destinations as a whole package will help in the growth of domestic as well as international tourism. Also, the announcement of additional airports, heliports, water aerodromes and advance landing grounds to improve regional connectivity is a great step. Like the Golden triangle, regional connectivity will give a major boost to the dedicated tourism corridors. This will help promote local tourism whilst giving a boost to investment in hospitality projects in the region. The industry is expecting appropriate allocation to be made to hospitality as per sector-specific planning envisaged by the Ministry of Tourism in conjunction with the industry. The enhancement of ease of doing business by reducing more than 39,000 compliances will also help to create a positive business environment. Lastly, the revamped Credit guarantee scheme for MSMEs with an infusion of Rs.9000 Cr into the corpus is expected to help small and medium-scale hotels and restaurants. The Hospitality industry’s long pending requests for Infrastructure status, uniform GST, and placing Tourism on the concurrent list of the constitution have not been met but the new announcements are positive signs of the Government’s intent about working on them in the near future.”
22) Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Limited
“The proposal in the Union Budget 2023, to increase the rate of TCS from 5 to 20 per cent for purchase of overseas tours & overseas remittances other than education will significantly increase the upfront cash outflow for end customers. It will drive more of these customers to use alternate channels that are outside the domestic tax net. We urge the Government to reconsider this. On the positive side:
- Income tax rebates announced in the budget will result in an increase of disposable incomes which is welcome.
- Tourism promotion being taken up on a “mission mode”- with active participation of states, public-private partnerships and convergence of government programs will drive domestic tourism growth.
- Strong infrastructural focus in the announcement of 50 new airports, heliports, water aerodromes and revival of advanced landing grounds will enhance regional access and connectivity.
- Financial support via loans to be provided to states for developing enhanced road and rail connectivity will help uplift of the domestic tourism sector.
- The selection of 50 destinations to be developed as holistic tourism packages – combined with the focus on local level tourism & the promotion and sale of GI products & handicrafts will give a boost to local arts and artisans.”
“The infrastructure spending of 10 lakh crores which is 3.3% of the GDP is a step in the right direction and is expected to have a positive cascading effect on all sectors. With respect to real estate, the extension of tax benefits to funds relocating to GIFT City till 2025 will enhance business activities in the region. The reduction in personal income tax and indirect taxes will enable individuals to have additional disposable income which enables them to look at investment options including buying homes. The capping of the capital gains benefit at a maximum of Rs. 10 crores for house property will however have a negative impact for the demand for ultra-luxury homes. In addition, the public-private-partnership initiatives that are being planned by the Government to boost tourism, along with the app to integrate all relevant aspects and the promotional measures to promote domestic tourism will have a positive effect on the sector. We welcome the measures announced to further promote tourism and to identity 50 projects for last mile connectivity improvement. The addition of 50 airports, heliports and waterdromes will also benefit the sector.”
In the recent past Tourism and Hospitality have been recognised as key pillars of the economy. Hotel sector can promote inclusive growth like no other industry given its potential to create jobs across categories, for women and differently abled persons and in remote and rural areas.
This budget too has recognised and highlighted the importance of the sector by announcing the selection and development of 50 tourist destinations through challenge mode. This will surely add more value to India as a destination for both domestic and international traveller Hotel Association of India has been advocating partnerships between the government and the private sector in the development of Indian Hospitality. That the destinations will be developed in a PPP mode as announced in the budget therefore also brings a deep sense of satisfaction.
The increase in standard deduction and reduction of income tax rates will place more disposable income in the hands of people and grow the demand for goods and services including hospitality services.
The Industry body was looking forward to some direct benefits like Infrastructure status, subsidised rates of utilities, property tax and availability of softer finance options, rationalisation of taxes for hotels . There is a mention of The Harmonized Master List of Infrastructure to be reviewed by an expert committee for recommending the classification and financing framework, about increased ease of doing business and other proposed reforms. The Association is hopeful that these recommendations will be addressed in the coming months.
Mr. Sanjay Jain, Director, Elanpro
25) Mr. Sanjay Jain, Director, Elanpro
“We welcome the budget announced by Honourable Finance Minister. Union Budget 2023 strikes a right balance between agriculture, manufacturing and services. It is growth oriented and promising while setting out a plan for inclusive development. The rejig of tax slabs is applauded by the salaried middle class. Enhanced focus on investment, productive expenditure, ease of doing business and green growth is noteworthy.
The measures outlined in the budget will surely give a boost to tourism. The move to add 50 more tourist destinations is a significant step. Increased focus on domestic and international tourism is expected to lift the sector and create employment opportunities. From a commercial refrigeration company’s viewpoint, we believe it is a positive step as it will spruce up investment and fuel growth in hospitality sector.
Focus on animal husbandry, dairy and fisheries is also expected to indirectly have a positive impact on the commercial refrigeration industry.
Amid concerns of global warming, the highlighted focus on green growth will give an impetus to sustainable solutions. The ‘Green credit programme’ to reduce carbon footprint is expected to incentivize eco-consciousness in our industry.”
26) Mr. Asif Fazlani, Managing Director, Fazlani Nature’s Nest
The government’s focus on tourism in the budget by giving it a top priority is commendable. The allocation of resources highlights the importance placed on boosting employment through the tourism sector. The budget demonstrates the government’s commitment to the holistic development of the industry. The plan to develop 50 tourist destinations for both domestic and international tourists will revolutionize the tourism industry in India.
29) Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one aimed to help India weather the current global economic challenges. With the FM announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country’s tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The FM also highlighted that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of the ‘One District, One product’ theme. Such initiatives will also help unleash the potential taped in the tourism sector.
It is heartening to see that the government is taking an interest in tourism and developing destinations, not just by increasing connectivity but enhancing the overall experience. They are looking at creating a holistic experience by focusing on allied services such as guides to famous tourist places, food stalls, and food vendors amongst other things.The other initiative by the government which is commendable is the skill development program. There is a severe shortage of skilled workforce in the tourism industry and any attempt to increase the skill quotient of the youth, contributing to any segment of tourism, be it hotels, transportation or local experiences will create a huge opportunity in this sector to create jobs and provide employment.”
“The investments in road & airport infrastructure through all the previous budgets and this current one are key in unlocking the tourism potential of our beautiful nation. We also welcome the initiative by the Government to develop 50 tourist destinations. Hotel guests, both domestic and international, are eagerly awaiting the discovery of these new destinations and along with it the natural beauty, food & culture of new parts of India.”
“We welcome the Union Budget FY-23-24, which is focused on the growth of the economy and the upliftment of all sections of society. The government’s focus on reviving MSMEs, agri-infrastructure, digital payments, tax reforms, and job creation is welcome and encouraging. This budget provides a good opportunity for businesses like ours to accelerate and foster economic growth and development, create jobs and contribute to nation-building. I am confident that this budget will have a positive impact on the Indian economy and will help us to achieve our business objectives.”
33) Mr. Rajat Agrawal, CEO, Barista
Union budget 2023 is out, retail industry was expecting few direct SOPs which were a complete miss from the budget, specially around Input tax credit. Keeping a positive view I see measures for bringing more cash flows in hands of individuals through relaxed tax sops, this will certainly have a direct bearing on their spends and we see this as a small window of opportunity which can benefit the retail sector with increased spending.
34) Mr. Kulbhushan Talwar, Cluster General Manager, Mosaic Hotels
“We welcome the announcement made by FM to develop 50 tourist destinations in the country as a whole package to encourage both domestic and international tourism. As this step includes the development of destination in terms of transport connectivity, virtual connectivity, tourist guides, tourist security and high standard food joints, it will definitely boost the employment opportunities generated collectively by hotels, F&B players, tour and travel agencies, OTA etc.
Also, the government’s plan to launch the ‘Dekho Apna Desh’ initiative will motivate people, especially young tourists to travel within India. The initiative will further strengthen the hospitality, travel and tourism sector to rebound rapidly and compensate for the losses that occur due to the pandemic.
Overall, Union Budget 2023 was balanced and I expect the direct tax recommendations will empower the middle class to spend the money on lifestyle and travel.”
35) Mr. Vineet Verma, Director, Brigade Hospitality.
36) Gilbert James, Managing Director, Isthara Smart Food Courts
The 2023 budget has provided ample avenues for the development of the startup ecosystem in India, giving an impetus for the growth of organized names within the hospitality industry. The support and encouragement for entrepreneurship and innovation is further reinforced by the extension of income tax benefits and the extended carry forward of losses for start-ups, standing as a clear indication of the Government’s commitment to fostering a thriving startup ecosystem. This will in turn benefit the hospitality industry and will drive change and developments within the sector. Additionally, the introduction of new tax slabs will strengthen customer purchasing power, resulting in a stronger consumption pattern and increased revenue for hospitality-related businesses such as hostels, restaurants, malls and more, bolstering further growth in this industry in the coming years. Further, the proposal to set up ‘Unity Mall’ in popular tourism destinations promises to hold huge opportunities from a hospitality perspective.
37) Mr. Kush Kapoor, CEO, Roseate Hotels & Resorts
“Honourable FMs push for the tourism sector is a great booster for the Indian hospitality industry. While post pandemic there has been a significant increase in domestic tourism’s contribution to luxury hotels, ‘Dekho Apna Desh’ campaign will further add to the momentum. The government’s focus on tourism promotion is evident in their opening up opportunities for joint participation of the states and private players in Government programs via the PPP mode. This will be a major driver for growth to tourism across India. Further, the development of 50 new airports and 50 destinations through challenge mode to develop a consolidated package for both domestic and international tourism also augurs well for India’s hospitality industry that has long grappled with infrastructure bottlenecks.”
39) Mr. Chander Baljee, Chairman and Managing Director, Royal Orchid & Regenta Hotels
In my view, the budget is very promising for our sector this year. Tourism has in some way been given the spotlight that was required for a long time. The focus on ‘Bharat Dekho’ is commendable as this is an initiative that will push Indians to explore India and see their own country like never before.
However, there are several areas, especially in the hospitality industry that have been missed. There are no loans for long terms as well as no industry status which has been our request for years.
Though tourism has been recognised as one of the drivers for the economy, yet, the suggested 50 additional airports will certainly help the industry but will take another 3-5 years to be built. The same can be said for the 50 tourist destinations that will be selected. This will take a very long-time , maybe even five to 10 years before completion.
In my view, more prominence has to be given to our industry. There should be more focus on the connectivity of airports, especially from the city centres by road or metro. Tourist places should basically have clean and hygienic toilets, which should be permitted especially where the archaeological departments do not permit it. Finally, instead of food stalls at tourist destinations, there should be proper food courts and parking facilities.
40) Mr. Mohit Malhotra, Chief Executive Officer, Dabur India Ltd.
Finance Minister Nirmala Sitharaman’s last full-fledged Union Budget before the 2024 Lok Sabha elections is a progressive, growth-oriented budget that promises to put more disposal income in the pockets of the consuming class, particularly the middle class, while focusing on building a new India with its heavy focus on capital expenditure.
The biggest positive, according to me, is the 33% increase in overall Capital Expenditure Outlay on Infrastructure Development, which will take India towards become a true global powerhouse and help urbanise the hinterland. The Government’s decision to set up a Rs 10,000 crore per year Urban Infrastructure Development Fund to be used for creating infrastructure in Tier-2 and Tier-3 cities will go a long way in boosting overall consumer confidence, and also help generate employment.
The greater focus on agriculture with a new Agriculture Accelerator Fund being set up; extension of the concessional institutional credit through Kisan Credit Cards to animal husbandry and fisheries sector; and an outlay of Rs 2,200 crore towards Atmanirbhar Clean Plant Programme will provide the much-needed solutions to present-day challenges of farmers. It would also be highly beneficial for companies with a strong rural footprint and would help drive growth for the consumer products industry. Dabur has been investing ahead of the curve in strengthening its rural footprint, which today covers over 1,00,000 villages. This exercise would further gain pace, going forward.
The 7-point agenda for this year’s budget with a clear focus on building social infrastructure, reaching the last mile, driving inclusive development, green growth and harnessing the country’s youth power, ticks all the right boxes. I am certain that these measures would help reduce the gap between the haves and have nots in the country.
Her focus on empowering the middle class with the higher exemption limit and new tax slabs would provide some relief to the salaried class and put more money and more savings in the hands of the common man.
Overall, this Budget is all about maintaining continuity and accelerating economic growth. I would call it a progressive Budget that balances growth with fiscal prudence while laying down the blueprint for creating an enabling framework that would promote an Atmanirbhar Bharat.
41) Mr. Dipak Sanghavi, Managing Director, Nilon’s
The 2023-24 Union Budget appears to be well-balanced and forward-thinking. The Finance Minister has successfully managed to increase capital expenditure by 33% while lowering the fiscal deficit from 6.4% to 5.9%. This action will further improve the stability of the Indian economy. The investment in Capital Expenditure will enhance productivity in the long run and reduce inflation.
The food processing industry plays a crucial role in enhancing agricultural efficiency and generating income. The emphasis on promoting millet cultivation, consumption, and exports, combined with increased investment in fisheries and support for natural farming, is beneficial for crop diversification, sustainability, and nutritional improvement.
As a consumer brand, we are happy to welcome the much-needed revision in the tax slab. The revised tax slab under the new regime is a positive change as it allows more money to be in the hands of people, which can boost the economy and increase consumption in the FMCG sector.
We also anticipate other policies and reforms that will enhance the industry, such as tax incentives, streamlined clearance processes, and simplification of the GST for raw materials. All in all, this has been an inclusive budget.
43) Mr. Vikram Agarwal, Managing Director, Greendot Health Foods Pvt. Ltd.
“It is a very promising and encouraging budget that ensures to be a stepping stone for a strong economy. India is on the path to become a developed economy from a developing economy. This budget ensures that we would grow at a steady rate of 6.5% to 7% which is the fastest in the world.
The reduction in import duty will offer relief to import and export companies and boost domestic manufacturing.
The new tax regime which has been curated to benefit the all class, It would leave more disposable money in the wallet which would boost spending and overall GDP.
The initiative of an Agriculture Fund to be set up will boost the agri related Industries, Investment in Agri Startups would help to bring fresh ideas and innovation in the agri space. Renewed focus on Millets would make India a global hub for millets which is catching up globally.
Infra space has been allotted an outlay of 10 lakh crores would ensure that we have an infrastructure at par with the global peers which would attract a lot of International Capital.
Overall it’s a very balanced budget.”
44) Mr. Hoshang Garivala, Country General Manager – India, Ascott International Management India Pvt Ltd
“The announcement made in Union Budget 2023 of increased allocation of funds towards the development of tourist infrastructure and promotion of tourism is expected to boost the hospitality sector’s growth while attracting more tourists to the country. The Ascott Limited, a leading hospitality company in the serviced residences space, welcomes the government’s focus on encouraging tourism and infrastructure development. We are confident that there will be rise in demand in the apartment hotel space and will create new opportunities for the industry. The budget has provided a positive outlook for the hospitality industry, and we are eager to leverage this momentum to drive further growth in the coming year.”
45) Mr. Karan Rathore, Vice Chairman, Services Export Promotion Council set up by the ministry of commerce and Industry
Mr. Alok Mathur, Co-Founder, Digi2L
46) Mr. Alok Mathur, Co-Founder, Digi2L
The multiple policies for “green growth” and “digital infrastructure ” expressed by the Finance Minister in the budget speech is a welcome announcement for the consumer durable industry. This would promote the adoption of greener technology products and help in recommerce of older products in a sustainable manner to create a positive impact on the environment. Companies which have invested in building a digital infrastructure around this could get benefitted by the support from the government. Benefits announced for start -ups to carry forward losses from 7 years to 10 years is also an encouraging step towards atma nirbhar bharat. Alok Mathur, co-founder and CEO of Digi2L.
Mr. Madan Sabnavis, Chief Economist, Bank of Baroda.
47) Mr. Madan Sabnavis, Chief Economist, Bank of Baroda.
The Union budget has quite expectedly followed the path of fiscal prudence and done its best to make money work better. Outlays have been rationalized and reoriented to the productive sectors i.e. capex in a bid to nudge private investment and growth. By retaining the net borrowing of the government at almost the same level as last year, it has ensured that there is no pressure on the market which is presently challenged by liquidity availability. A few tax sops at the individual level and firm support to the SMEs through the credit guarantee scheme would provide support to these classes. The private sector needs to provide back-up support by stepping in and investing.
Mr. Mohit Ralhan – Chief Executive Officer, TIW Capital
48) Mr. Mohit Ralhan – Chief Executive Officer, TIW Capital
“It’s a forward-thinking budget with a focus on creating a blueprint to make India the third-largest economy. This budget has kept all constituents of the economy in mind, be it infrastructure building, creating manufacturing jobs, marching towards green energy, middle-class taxpayers, rural welfare and poor citizens. Bridging the infrastructure deficit is the top priority for this decade and the increase in capital expenditure by 33% along with the highest-ever allocation to railways is a big step in this direction. The announcement of several favourable indirect tax proposals, such as a reduction in the highest surcharge rate to 25% from 37%, a reduction in customs duties, etc. should boost domestic manufacturing creating much-needed employment opportunities. The government continues to emphasize on the transition to green and India’s commitment to reach a zero net carbon emission status. The 66% increase in allocation to PM Awas Yojna and the increase in tax exemption limit to INR 7 lakhs should result in an increase in consumption spending. The government has skilfully walked the tightrope between job creation and controlling the fiscal deficit, with the target of getting it below 6% of GDP. overall, I believe this budget has hit all the right notes and provided the right impetus to propel India as a leading economic powerhouse”
Mr. Ajitesh Korupolu, Founder & CEO, ASBL
49) Mr. Ajitesh Korupolu, Founder & CEO, ASBL.
“First of all, I’d like to congratulate everyone for the new income tax regime announced. With multiple initiatives aimed at infrastructural development, the government has ensured that taxpayers and businesses alike have several causes for celebration.
Among the Urban Planning initiatives, the enhanced opportunities for private investment, transit-oriented focus on development and considerations for urban sanitation will be key drivers that improve the quality of life in our cities. The proposed Artificial Intelligence-led research in Sustainable Cities will hopefully solve many complexities we face in the design, construction and planning of urban landscapes. “
Mr. Vipul Singh, Co-Founder and CEO, Aereo
50) Mr. Vipul Singh, Co-Founder and CEO, Aereo (formerly Aarav Unmanned Systems): “The Union Budget truly echoes India’s ambition towards “Digital India” by delivering new-age courses for industry 4.0. Courses in coding, AI, robotics, and drones will enable new-age skill-building for India’s youth. This will open up a wide array of opportunities for them, especially in the rapidly expanding drone industry. The government’s focus on progressing technology and R&D through improving human capital is a step in the right direction. Upskilling the youth is critical to developing a robust drone infrastructure across the country.
Currently, the demand for technically proficient workforce in the country is at an all time high. With the increasing number of drone startups, this initiative towards including technology-focused curriculum will help lay the foundations to fulfill this demand. Another major boost to the startup ecosystem in the country is lowering capital gains taxation and allowing startups to carry forward losses on changes in shareholding from 7 to 10 years after incorporation. The setting up of Agriculture Accelerator Fund will propel agri-tech start-ups, which drones are an active part of, and develop innovative and affordable solutions from the vast majority of rural India.”
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