The Finance Minister Nirmala Sitharaman will present the last full Union Budget of the current government on 1st February 2023. Here is what India Inc. expects from it.
‘Effective regulatory framework can further boost digitisation and accountability in jewellery’
The jewellery industry in India has the potential to be a major driver of economic growth; the sector benefits from a large and vibrant market driven by strong domestic consumption as well as seasonal demand from the visiting Indian diaspora. With evolving consumer preferences as well as introduction of various regulations such as GST implementation and mandatory hallmarking, there has been rapid formalisation in India’s jewellery industry.
As we look forward to the Budget 2023, we have a huge opportunity to unlock the true potential of India’s jewellery sector and develop it to become a global leader and trade centre. We believe, with the right policies and support from the Government of India, we can further encourage the industry to become more organised. As an entity built on the principles of trust and transparency, it gives us immense pride to see widespread acceptance of fair trade practices such as BIS hallmarking, which has eventually empowered consumers across markets.
With major infrastructural investments such as the launch of a new jewellery park in Navi Mumbai and expansion of manufacturing facilities in Surat, we are driven towards improving efficiency and bringing in innovation across the sector, through various pioneering initiatives. The formulation of an effective regulatory framework can further boost digitisation in the sector that will eventually increase transparency and accountability..
– Ramesh Kalyanaraman, Executive Director – Kalyan Jewellers
‘We expect some relaxation in GST for air-conditioners’
The Union Budget 2023 will play an important role in bringing the white goods sector on track, amidst geopolitical uncertainties and rising inflation. Strategic actions to strengthen the manufacturing in India will be essential to maintain the current trajectory of steady economic growth in the country. The Production-Linked Incentive (PLI) scheme should continue forward which will push ‘Make in India’ ahead. And as we move towards the summer season, we expect some relaxation in GST for air-conditioners from the upcoming Union Budget 2023.
– Satish NS, President, Haier Appliances India
‘An opportunity to put our MSMEs in the fast lane’
Budget 2023 gives our visionary government an opportunity to put our MSMEs in the fast lane, building on its proactive efforts to transform the small business economy. First, the government can bolster working capital for e-commerce suppliers by lowering GST on input services like logistics and facilitating refunds of accumulated input tax credit. Over April-November 2022, ~2.9 lakh sellers on Meesho dealing in products that attract <18pc GST saw input tax credit accumulation of Rs. 265 crore.
Second, expediting the implementation of GST relaxation norms for small online businesses will allow millions of them to realise their full potential.
Further, with the National Logistics Policy bringing down costs for the ecosystem and strengthening distribution networks, the government could leverage the unmatched reach of India Post and Indian Railways to help our MSMEs meet rising e-commerce demand from small towns and villages in a fast and reliable manner, thereby boosting their competitiveness.
– Vidit Aatrey, Founder & CEO – Meesho
‘Hoping PLI scheme now expands to retail kitchenware’
The retail market in India is estimated to grow to $2 trillion by 2032 (as per Invest India report), and the e-commerce industry is expected to grow at a CAGR of 23pc, to cross $350 bn (Invest India stats). With this, as we take bigger steps towards becoming a self-sufficient nation, industry experts are looking forward to this crucial budget before the 2024 Lok Sabha elections.
The good news for us is that the ministry has hinted that schemes that promote local manufacturing, exports, and job creation will be prioritised, along with bifurcating funds. A lot of us would benefit if this thought was put into action. We’re also hoping the PLI scheme now expands to the retail kitchenware industry as a part of the ‘Make in India’ initiative. Incentivising good business practices that not just grow the business but add to the nation’s all-around success will be a win-win for all. However, overall growth cannot be dependent on just government funding, as private investments hold equal importance. This can be promoted by the budget helping improve the ease of doing business, the cost of growing business, and providing tax benefits and exemptions.
– Sunil Agarwal, Director, Vinod Cookware
‘Formulate policies and bring transparency’
The gem and jewellery industry is hopeful that the government will announce supporting measures and specific schemes for the industry in the forthcoming Budget as it holds huge potential to create jobs and increase exports year on year and become a major driver of economic growth. The need of the hour is to formulate policies and bring transparency that aim at bridging the gap between organised and unorganised players. We are also hoping for a further reduction in customs duty which will regularise prices and in turn, boost customer demand.
Setting up one of the world’s largest gems and jewellery park in Navi Mumbai will be a major boost to initiate new business or strengthen existing ventures and will definitely make India a global leader. Other initiatives by the ministry such as a simplified regulatory framework for gem and jewellery exports through e-commerce, hallmarking norms etc. will also go a long way in boosting the growth of the sector.
Consumer sentiments have picked up in a big way in the post pandemic era and we have seen a robust demand during the last festive and ongoing wedding season. As the economy grows at a fast clip, we are very optimistic about the diamond and jewellery industry and it will continue to play a significant role in India’s GDP despite several global headwinds.
Overall, the upcoming Union Budget should focus on boosting disposable incomes of the burgeoning middle-class through favorable fiscal policies and beneficial tax regimes that should eventually lead to demand generation and accelerate consumption.
– Eshwar Surana, Managing Director, Raj Diamonds
‘Encourage manufacturing investments among tech providers for self-reliant solutions’
Mitsubishi Electric India is looking forward to encouraging Infrastructural development and bringing technological innovation through our products and solutions for the Indian market. I hope that Budget 2023 scales a path towards India’s growth story, especially in the infrastructure and technology sectors. The expectation for the upcoming union budget is to continue and provide the right policy and budgetary framework to ensure economic growth of the country and a budget design that can stand as per the GDP growth rate expectations.
Considering that the Indian economy has begun to recover from the fiscal repercussions of the Covid19 pandemic, the manufacturing sector is expected to experience solid growth, which can further strengthen by providing fiscal incentives and specific schemes in the upcoming union budget 2023-24.
I strongly believe that the Indian government will prioritise policies that can benefit the infrastructure, manufacturing sector and promote renewable energy allowing the country to realise its potential on a global scale. Manufacturing investments must be encouraged among technology providers to bring self-reliant solutions in the country. Development of new-age manufacturing skills across the top and bottom of the pyramid must be enlightened which can be a game changer for further skill development.
– Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India
‘Enhance food sector competitiveness in the International market’
This fiscal year we would like the budget to enhance food sector competitiveness in the International market. The government should provide a budget for export incentive schemes to the food sector and a subsidy for overseas participation in major food shows.
– Vikram Agarwal, Managing Director, Greendot Health Foods
