2023-24 Budget Reactions from Business Leaders

Finance Minister Nirmala Seetharaman just finished her budget speech. Overall, it looks pragmatic and forward looking. Several infrastructural projects for all states, and various sector specific reforms are all set to be implemented in the coming months. What do the business leaders from different industries are saying about this? Let us hear from them.

Dinesh Pratap Singh, Co-Founder, WoodenStreet

With easing capital gain taxation and carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years, the country could become home to many more startups in the coming year.  

Another important announcement about setting up the Agriculture Accelerator Fund will encourage agri-startups by young entrepreneurs in rural areas. Moreover, bringing out the National Data Governance Policy will unleash innovation and research by start-ups and academia. The several supportive policies for startups in Budget 2023 by the Finance Minister will help to scale up the operations to a greater extent and create a boom for the startup ecosystem across the country.

Ashish Aggarwal, Director, Acube Ventures

Assistance to MSMEs continues in line with last year’s expectation for Budget 2023. Budget 2023 is providing wings to India’s growth story with special focus on investment increased expenditure, employment and ease of doing business. Revamped credit guarantee scheme will take effect from April 1, 2023, through the infusion of Rs 9,000 Cr in the corpus.

This enables additional collateral-free credit of Rs 2 lakh crore to MSMEs and will enable to lower cost of credit by 1% as proposed by FM Nirmala Sitharaman. This comes off as a great news for MSMEs that are still recovering from the impact of pandemic.  Budget 2023 has stood up to the expectation of including supportive measures aimed at democratising credit and speeding up financial inclusion.

Amit Gupta, MD, SAG Infotech

Existing legislation will be changed to make compliance easier – a single point of contact for SEZ, GSTN, and IFSC registration will be established. Vivad se Vishwaas, MSMEs Relief – In the event of non-performance, the government will reimburse 95% of the contract money to provide relief. PAN will be used as a unique identifier for all digital systems of the government agencies listed.

Delphin Varghese, Co-Founder and Chief Business Officer at Adcounty Media

The Vivad Se Vishwas scheme, declared by FM Nirmala Sitharaman in the Budget 2023, provides a ray of light to failed MSMEs. MSMEs will receive 95% of the performance security from the government under this scheme in cases of failure to execute contracts.

The credit guarantee programme for MSMEs had a rocky start, but by getting banks on board and encouraging them to lend, the scheme has helped reduce stress in the sector. According to the FM, the updated Credit Guarantee Scheme for MSMEs would go into operation on April 1, 2023, with an injection of Rs 9000 crore into the corpus. This will permit an additional Rs 2 lakh crore in collateral-free credit guarantees, lowering the cost of credit by 1%.

Raghunandan Saraf, Founder & CEO, Saraf Furniture

Calling MSMEs the “growth engines of the economy”, FM extended the benefits of presumptive taxation to micro-enterprises with a turnover of up to 2 crores. MSME credit assurance It was proposed last year to revamp the credit guarantee scheme for MSMEs. The revamp scheme, with a corpus infusion of 9000 crores, will go into effect on April 1, 2023. This will enable another two lakh crores of rupees in collateral-free guaranteed credit.

Credit costs will also be reduced by about 1%. The infusion of Rs 9,000 crore into the corpus of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) should allow for better and broader scheme implementation, as well as improved claim meeting.  This decision is expected to offer a significant benefit to India’s MSME sector, which is regarded as a major economic growth driver.

Supplemental collateral-free credit is expected to aid MSMEs in meeting the obstacles posed by the global epidemic and allowing them to continue to grow and create employment. It  could be a positive step in safeguarding the well-being and expansion of India’s MSME sector.

Mahek Mody, Co-Founder, UP

The 2023 Budget has indeed witnessed the government make conscious efforts to better the state of Indian entrepreneurship and MSMEs. In a world moving towards Smart and Connected Homes which are technology-led, the governments’ focus on AI, Robotics and other Engineering education across sectors is much appreciated. However, the limited scope of reduced custom duties and subsidies to mature industries such as Fintech, Electric Vehicles, and Mobile Phones, may hinder the growth of nascent sectors.

The $30 billion consumer appliance industry has immense potential and could be dominated by Indian companies with the appropriate support. We acknowledge the centers’ steps on reduced tax slabs and the extended loss carry-over period, but hope that startups in new and emerging industries will receive greater attention in the future. Our goal is to establish India as a leading exporter of modern and smart appliances, for which government support is a must.

Dr. Deepak Jain, Founder, The Fragrance People

The ongoing make in India initiative, including lower import duties on raw resources used in electronics, cameras, TV panels, and other products, should help increase direct and indirect job creation. This will aid in the promotion of easier credit access, infrastructure development, and increased opportunities for employment benefits. Further reductions in personal taxation slabs should help increase middle-class disposable income with a multiplier effect, boosting the economy and retail sector.

Ridhima Kansal, Director, Rosemoore

The union budget has announced a fresh corpus of INR 9000 Crores for guaranteed credit support for the MSME sector. This is a very positive step towards supporting the MSME segment, which is one of the critical cogs in the overall economic growth of India. There are close to 6 crore micro, small, and medium enterprises in India and offering them support is not just conducive for the sector but will also foster growth in the overall economy.