Various Industries' Wish List from the Latest Budget 2023-2024
On hand, there are layoffs happening across various industries, particularly in the tech industry. Other hand, Indian industries are relying on the government's aid to rescue them from their future downfall. Can both be rescued is what we’ll have to find out with the latest budget.
The capital expenses for the fiscal years 2022 and 2023 are included in the Budget 2023, while the union budget for the current fiscal year has increased by 35.4 percent to Rs 7.5 lakh crore. The Finance Minister will avoid the paper format in favor of the digital medium for the sixth consecutive budget speech. In addition, this is the final complete Indian budget until the general elections in 2024, which is noteworthy. Most analysts predict that Budget 2023 would focus more on capital investment for infrastructure, expand production-linked incentive schemes for new industries, increase rural demand, and set divestment targets while taking a balanced approach to fiscal consolidation and economic growth.
Insurance Industry to Have Consumers Better Covered in Medical Treatment
Today, consumers are expecting better health insurance coverage to have enough financial stability as medical treatment expenses have increased considerably over time. As a result, they must pay higher premiums than allowed by the current tax deduction cap. As a result, the insurance sector anticipates an increase in the present Section 80D tax ceiling. The budget for 2023–24 is also anticipated to include a new tax section for life insurance, an emphasis on pension plans, a reduction in the GST ceiling (at least by 7–10 percent), and tax advantages for auto insurance.
MSMEs Expect a Revamp of Credit Guarantee Scheme
MSMEs expect a more flexible line of credit, which is one of their fundamental needs given how supply chain issues and delayed payments drain their operational capital. In the Budget for 2023, a revision to the Credit Guarantee Scheme for Micro and Small Enterprises is anticipated. The budget may also include the government's full integration of the e-Shram, Udyam, National Career Service, and ASEEM portals.
On the other hand, India's exports could increase and grow under the Product-Linked Incentive (PLI) program. To encourage exports, the government may open up PLI to more users and expand it to potential new markets. The current PLI initiatives are exclusively accessible to corporate and large businesses in particular industries. Therefore, PLI programs are anticipated to be expanded to MSMEs in the budget for 2023 in order to boost exports.
Telecom Expects Government’s Call in Drawing Investments
For infrastructure expansion, regarding 5G networks rollout and the expansion of internet connectivity in rural areas, the telecom sector is expecting aid from the government. Along with regulations that promote fair competition and protect the interests of consumers, it also anticipates that tax benefits will draw investment into the industry. Prior to the Budget, the government received a number of important proposals from the Cellular Operators Association of India (COAI), a non-governmental trade association and advocacy group largely focused on the telecoms business in India.
Aviation Industry Expects to Take Flight Ahead of Skyrocketing Jet Fuel Prices
Due to a significant decline in traffic during the first two years of the pandemic, the aviation industry is currently in disarray. The aviation industry is said to seek financial support to help it overcome its challenges as jet fuel prices continue to rise.
Cost Control Expected to Boost Competition of Logistics Industry
It's anticipated that this budget will include implementation of the National Logistics Policy (NLP). The NLP will save costs and remove bottlenecks. The cost of logistics in India accounts for almost 14 percent of its GDP. The government should lower logistics expenses to 8–10 percent of GDP to compete with other developing nations. Cost control in the logistics sector is anticipated to take center stage in the Budget.
Government to Boost Growth Overall Healthcare Facilities
At least INR 1 crore, or 20 percent more than the year before, must be added to the healthcare sector's yearly budget each year. This money can then be divided among various programs and departments like infrastructure, education, human resources, research, and other projects. The National Health Policy's aim of 2.5 percent GDP for 2017 requires an increase from the current stagnant level of 1.3 percent of GDP to at least 1.5 percent this year.
Banking Sector Expects to Go Private
The sector hopes that the latest budget would include the privatization of public sector banks (PSBs). According to experts, speeding up the privatization of PSBs will boost financial inclusion in the nation and improve operational efficiency.
On the other hand, Tax incentives, regulatory clarification concerning viable business models in the Web3 platform, and easing of limits on merchant discount rates are all the products on the fintech sector's wish list for Budget 2023.
EV Industry Expects Volts of Charge to Accelerate the Adoption
India has one of the largest markets for electric two-wheelers in the world. Besides, the EV adoption has been pacing phenomenally. Therefore, the industry expects that EV subsidies will be expanded to support clean mobility in India. The industry strongly believes that, to speed the adoption of e-mobility, infrastructure for EV charging should be prioritized. Likewise, it believes that this objective can be accomplished with the aid of FAME incentives for charging and switching infrastructure. Given that the EV sector has been supplying high-quality and reasonably priced sustainable energy solutions, it is believed that implementing the battery swapping policy and recognizing batteries as a service will aid in the development of EV infrastructure and enhance the adoption of EVs. Such incentives and regulations would support the expansion of India's sustainable energy infrastructure and lower the cost of EVs.
Cybersecurity Industry Expects Government’s Support to Raise the Bar on Protection on Cybercrime
The sector anticipates that laws governing connecting firms would be streamlined, providing support and direction to Indian businesses wishing to use the most recent digital security architectures and methods, such as zero trust. It also thinks that the government should provide incentives and support for manufacturing, which will assist India maintain its leadership position in this global market. Most importantly, it thinks that the government may come up with a plan to incentivize firms to share cyber security intelligence. Similar to how it is done in other nations, the cybercrime sector in India also thinks that this will be a crucial component of Indian firms' defense against the growing cybercrime.