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Budget 2023: Demand creation will see pvt investments, says India Inc

February 02 , 2023

Source: Financial Express

With the finance minister making an attempt to invigorate the critical demand drivers of consumption and investment, India Inc exuded optimism that private capex, will start picking up from now on.

The industry basically feels that measures related to digital infrastructure, emphasis on urbanisation, and green growth, addresses the growth concerns. Further, the 33% rise in capital spending by the government for FY24 will push overall productivity of the economy and lead to creation of jobs.

According to Sajjan Jindal, chairman of JSW Group, a 40% increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh will put more money in the pockets of middle income group, which will lead to more spending.

“The move to rationalise personal income tax rates will go a long way in increasing disposable incomes, thus giving consumption a leg-up which will in turn have a salutary impact on India Inc’s investments,” Sanjiv Bajaj, president, CII said.

Continued support to the vehicle scrappage plan, extension of customs duty on lithium-ion batteries by another year, and 50 additional sites for improving regional air connectivity are some of the other measures announced in the Budget, which are seen to give a push to investments.

“The emphasis on increased infrastructure spending and support for lithium-ion battery manufacturing will be a great multiplier for industry overall,” Sudarshan Venu, MD, TVS Motor Company, said.

While there was no direct benefit announced for the automotive sector, the reduction in individual tax slabs is expected to benefit the budget segment vehicles.

Manish Raj Singhania, president, Federation of Automobile Dealers Association said, “The reduction in individual tax slabs will benefit the ailing entry level two-wheeler and passenger vehicle segment.”

According to Rajiv Sabharwal, managing director & CEO, Tata Capital, “Strong agricultural credit outlay,support measures, ease of doing business, and digitisation drive across various sectors will improve multiple clusters within the economy”.