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The Union Budget 2023 will be presented by Finance Minister Nirmala Sitharaman on the Parliament on February 1. This year, the budget is likely to be growth-oriented with a focus on capex, manufacturing, infrastructure, and rural economy. 

The first part of the budget session 2023 is expected to continue till February 10. The complete session is likely to begin on January 31 and is expected to conclude on April 6 with a recess in between. 

Different sectors have different expectations from the budget, let's see what the different organizations expect from below mentioned organizations. 

1) Chandru Kalro, Managing Director, TTK Prestige

TTK Prestige MD said, “The past few years have seen unprecedented volatility and India has outperformed most large global economies thanks to some very good policy moves by the government. My expectation from the budget would be to stimulate demand since we are seeing some slowdown in the second half of FY 23.

The broader focus of the budget should be to continue promote growth with a focus on local manufacturing and exports, keeping in sync with the ‘Make-in-India’ agenda. The supply side has been well managed and the demand side needs more attention.

Inflation has been sticky and difficult for large section of the society and the government must look at reducing some taxes, both direct and indirect so that more money is available with the people.

The middle class is the backbone of the economy. They’re the main drivers of consumption and economic growth and there needs to be a special focus on them. The government must consider tax benefits to the middle class consumer, the salaried employees who have paid their taxes honestly always. This will have a significant impact on their finances and expenses. It will leave them with additional disposable income in hand which will help drive consumption and boost the economy. Thus, I would love to see some tax breaks for this section of the society in the budget."

2) Ravi Subramanian, MD & CEO, of Shriram Housing Finance Ltd

He said, "Housing for All has been amongst the most significant initiatives driven by the GoI. We expect the government would continue to build upon schemes such as PMAY to emphasize the importance of the same. The rural low-income housing segment with ticket sizes of INR 8-15 lakh and borrower income of under INR 3 lakh annually is the segment where the need for adequate housing is acute. To address the demand-supply mismatch in rural housing, we expect some special incentives for customers/builders in this segment. With limited projects catering to consumers here, any benefit from the government’s side would aid in easing concerns on both supply and affordability.

Further, there is also an expectation of a revision in the limits of Section 80C and Section 24 for principal and interest rebates on home loans. With inflation being elevated over the last couple of months, the construction cost has increased, and any rationalization of these limits will help the end consumer."

3) Bipin Preet Singh, Co-Founder & CEO of the MobiKwik

"The upcoming budget will undoubtedly be geared towards augmenting the growth of the Indian economy, but it also needs to address the challenges faced by the common man and the salaried class as we recover from a global pandemic and tackle the ongoing global economic slowdown. People are especially pinning their hopes on the upcoming budget to address the issue of unemployment, control inflation, and make essential goods and services more affordable. The salaried class is looking for some cheer on the personal tax front, hoping that the annual basic exemption limit gets enhanced to 5 lakhs from the existing 2.5 lakhs."

4) George Alexander Muthoot, MD, Muthoot Finance

“Taking a Gold loan against household jewellery is one of the most important funding source for MSMEs, small businesses, individual borrowers, women borrowers. Gold loans provided by NBFCs are not considered priority status and hence, specifically to gold loans NBFCs we expect restoring priority sector status to eligible gold loans, including microloans, loans to farmers and microbusinesses. We also hope that the Government will now permit the securitization of short-term gold loans without the minimum holding period (MHP) requirement but with a minimum retention requirement (MRR) of 20 percent of the book value of the loans being securitized/20 percent of the cash flows from the assets assigned."

5) Dr Vaibhav Kapoor, Co-founder, Pristyn Care

“Given the stress exerted by the COVID-19 pandemic on the public healthcare system in the nation, there is expected to be a stronger focus on public expenditure on healthcare. In line with the increase in healthcare spending over the past couple of years, the allocation for public healthcare might see a record increase as India prepares to increase its spending to 2.5% of GDP by 2025. The Government of India is also expected to tap into the public-private partnership model to ramp up primary healthcare infrastructure in the nation."

"The healthcare industry has long-standing expectations focusing on public health and affordable care at the center. India is among the top destinations globally for medical tourism; therefore, it requires increased policy support. Ease of GST norms and measures to ensure ease of doing business will increase investment in the sector to facilitate the industry's long-term growth. The government's support in this would be critical. ABDM (Ayushman Bharat Digital Mission) has paved the way for the digital healthcare ecosystem, and this budget looks positive to continue contributing to its growth. By 2047, the healthcare network will be more efficiently digitized with a greater number of participants and covering nearly the whole of India."

6) Arjun Naik, Founder & CEO, ScanDron

“Drones bring increased safety, economy, efficiency and accuracy across a myriad of Industrial Verticals including Energy and Construction and Infrastructure. The government has taken cognizance of this and has taken significant regulatory strides towards liberalizing and normalizing the use of drones for industrial and commercial applications. As the fledgling Make In India Drone Industry takes flight, challenges remain in terms of import of critical components, finance and Insurance."

“In the upcoming budget the industry needs support in terms of access to finance, insurance and a regularized import policy for critical components such as Batteries, Engines, Flight Control Electronics, Motors and Engines, which are still not available under Make in India. Standardized import policy for drone components will allow for faster technological adoption and Indianization of Drone components. Better and easier access to capital finance markets, liberalized investment policies and access to insurance will allow the Make In India drone industry to take major leaps towards maturing and becoming a sustainable mainstream industry."

7) Avinash G Singh, Senior Vice President, Aranca, Investment research

“We believe the government will present a growth-focused spending plan, maintaining the impetus on investments in infrastructure development. We, therefore, see the road, railway, and urban infrastructure sectors to see meaningful allocation as the significant beneficiaries of the budget. In addition, we expect healthcare, education, and rural housing to be the other major sectors likely to benefit from increased allocation of funds. India has recently made aggressive plans to achieve a sizable contribution from renewable power sources such as solar and wind. We believe the budget will have a special mention of India’s long-term roadmap toward achieving its targeted renewables capacity in addition to potential tax benefits awarded to the industry. Finally, we also expect the union budget to focus on the government’s investments in the use of technology in the form of artificial intelligence, machine learning, and internet of things (IoT)."

8) Dr. Shreeram Iyer, Chairman and Group Chief Executive Officer, Prisma Ai

“As we are headed into a more digitalized age, the use of technology, particularly artificial intelligence, has increased several times over the past few years and will continue to receive more emphasis. The government has allowed the usage of face recognition in financial transactions and airports, as an additional layer of security. Prisma AI anticipates that the finance minister will allocate a greater overall budget towards AI and Technology for future ready solutions, which can include face-recognition based entry and ticket systems, ANPR plus GPS based tolls or turnstile activation, body posture estimation systems that can help in providing assistance to those in need or for general body-related analysis, automated highway management and much more."

“Additionally, it can be expected that AI-powered medical technologies and devices will be funded which can help in curing ailments as well as various known conditions much faster. Prisma AI is innovating and developing its own share of advanced technologies and focusing on providing its globally acclaimed Visual AI Products and Solutions for the benefit of the Indian consumers."

9) Lakshman T L, CEO, Milann Hospitals

The healthcare industry is urging the government to increase spending on R&D, the adoption of new technology, and innovation in the healthcare sector in Budget 2023. The current barriers in the sector must be addressed, and measures are taken to further strengthen its core. Furthermore, the industry body PHD Chamber of Commerce and Industry recently expressed that the health budget is in dire need of a hike of 30 to 40 percent to fulfil the bulging needs of the healthcare sector and build a healthy human resource for the nation."

“Previously, the Ministry of Health and Family Welfare received INR 86,201 crore in the Union Budget 2022–23, a significant increase of nearly 16.5 percent from INR 73,932 crore in FY 2020–21. A further surge is expected for Budget 2023 as the sector needs to keep developing sustainable healthcare infrastructure and ensure system readiness to handle the country's rising healthcare demands. Owing to the sharp increase in non-communicable and lifestyle diseases, the upcoming budget is also likely to place a strong emphasis on preventive healthcare."

“Collectively, it is anticipated that healthcare is going to be one of the core areas of the impending budget. As we gear up for the new year, stable policy frameworks and incentives to support the healthcare sector's survival, including widening accessibility, investing in new technologies and innovations, strengthening patient safety, and increasing the number of skilled professionals in India, are needed."

10) Kushal Chakravorty, Founder of Lotus Petal Foundation

“Adoption of EdTech in the execution of NIPUN Bharat using remote teaching models with active public-private partnerships can be a game changer. Increased budgetary allocations towards this will be a welcome step. The highest priority of the education system as mandated by NEP 2020 should be to achieve universal foundational literacy and numeracy in primary school-level students by 2025. In view of the recent ASER report indicates that there has been a decline in the basic reading and arithmetic skills of young children in Class 3 and Class 5 in India. To achieve this basic most basic learning requirement (i.e., reading, writing, and arithmetic at the foundational level) there is an expectation to increase the allocation of funds for the NIPUN Bharat scheme."

“During the pandemic, organizations including Lotus Petal Foundation have found methods of imparting education to primary-level children remotely. The increased availability of smartphones and digital devices can be utilized to implement the NIPUN Bharat scheme using these teaching models. The expectation is increased fund allocation towards bridging the digital divide, especially in underserved communities".

11) Yash Jain, Co-Founder and CEO at NimbusPost

“The Indian logistics industry needs shorter delivery timelines which can be achieved with the use of advanced technology. Plus, the technology should be available at economic rates so even small-sized brands can leverage the latest tech for a superior logistics experience. Delivering orders fastest from one corner of the country to another at the lowest cost is the biggest challenge for the logistics industry at the moment. The industry is in dire need of world-class infrastructure, electric vehicles, IT implementation, decongestion of roads, road/port capacity expansion, lower fuel cost, more logistics parks, improved warehousing and automation, and transparency in govt policies."

12) Pooja Singh Rathore, Co-founder, Gigzeu

Budget should focus on reviving the growth of private consumption (Low per capita consumption) & increasing the capital expenditure in the country. Indian growth has been primarily fueled by a middle class led consumption especially in urban markets. Cutting direct taxes & indirect taxes which impact middle & lower income group people will increase consumption level. Capital expenditure increase will create more employment and decrease the inefficiency in the system. Special package should be designed for financial/formal employment inclusion of domestic gig workers/work industry as this sector employs large populations which are informal in nature and key for increasing private consumption."

13) Amit Agarwal, Managing Director, Singapore & India, Stanton Chase

“It is likely that the government will continue to focus on creating a favorable business environment and promoting economic growth, which may include measures to support the hiring of executives and other skilled professionals. The Centre has been focusing on increasing employment opportunities and providing support to businesses and industries. The budget 2023 may also have schemes or policies that focus on skill development and vocational training to increase the availability of a skilled workforce which would be beneficial for executive hiring."

“The government may also announce tax incentives for companies that increase their hiring of executives and other skilled professionals. This could include tax breaks for training and development programs, as well as deductions for executive compensation."

14) Sachin Gaikwad, Founder and CEO, Buildd

“For the Indian fintech and startup industries, 2022 was a fantastic year. The upcoming budget should take into account providing tax advantages to consumers, retailers, and ecosystem enablers in light of the growth in digital payment. It should support additional collaborations between banks and fintech in order to boost innovation in the fintech sector. Furthermore, we believe ESOP policy should be relaxed in terms to avoid dual taxation. The government should make the Co-lending module more flexible for PSU & large private banks to participate along with non-rated NBFCs basis their credit underwriting modules. GST subsidy for Fintechs & Financial infrastructure players who are reaching via tech to tier 2, 3, 4 towns & running micro fin programs for unbanked segment should be taken into consideration."

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