Industry’s Expectations from Union Budget 2023-24

The government’s announcement of a slew of significant economic reforms over the last three years has bolstered the engines of economic growth. Along with numerous expectations, the industry veterans are keeping an eye on a few major budget updates.

The following is what the industry anticipates from the upcoming budget announcement:

Mr Prashant Kumar Founder and CEO at weTrade

“The budget comes at a time when there is a lot of activity in the crypto sector. After the announcement in the last budget, the government should examine the 1% TDS and reduce it. Cryptocurrency should also be considered closer to other equity assets.

Given that the G20 is looking into a global crypto framework under India’s presidency, the government should consider bringing out some industrial regulations for the sector in this budget. It is the need of the hour to protect consumer interests”.

Mr Arjun Khazanchi, co-founder & chief legal and strategy officer, Rooba.Finance

“Most experts believe that the government will reflect fiscal prudence in light of growing interest rates and impending slowdown of large economic powers like the US while also navigating a tilt towards the interest in India as a viable financial superpower in the coming decades.

There is a slow change that will need to be carried out in order to see that come to fruition but the $5 trillion may not be as far as was initially believed. Tax collections even in this environment have been rising and there is no expectation of easing rates.

There is broad consensus around a slowing in growth in the short term but inflation being sticky around the 6-8 per cent levels before a reduction follows. There are tools at the disposal of the central bank but typically these are blunt force tools lacking surgical precision. There are hopes that the blockchain world may see some form of regulatory clarity in the coming months but nothing concrete around the budget, which does leave room for further uncertainty in the space”.

Mr Manu Awasthy- CEO and Founder, Centricity Wealth Tech

“The Union Budget 2023-24 will be presented in the backdrop of geo-political uncertainties, high inflation and slowing global growth. At this juncture, carefully thought through steps to enhance domestic sources of growth would be crucial to maintain a steady trajectory. Measures to reduce cost of capital, power, logistics, land, and labour would be most welcome along with steps to grow employment, capacity utilization and social infrastructure.

For private investments to grow, factory level business and enhanced incomes in the agriculture sector would be indispensable. The budget expectations look positive, but recessionary and inflationary tendencies must be kept in check. Factory output and growth in agricultural incomes seem to be the government’s focus, along with growing consumption. Capital goods, banking and consumer durables could be beneficiaries of some positive budgetary allocations.

Consumption and expenditure are 2 integral pillars to India’s growth story. Capacity utilisation and manufacturing sentiments are contingent to these 2 factors. With purchasing power looking to grow in the post pandemic era, coupled with the government’s vision of Atmanirbhar Bharat, infrastructure, capital goods and consumer durables could be the main beneficiaries. Infrastructure, agriculture, and capital goods could see positive momentum coupled with banking as credit penetration continues to improve. The government’s focus is expected to be on growing consumption and improving infrastructure.”

Mr Scott Horn, CMO, EnterpriseDB

“Everything we do and every dollar we spend must ultimately contribute to making our customers’ lives easier. As enterprises compete to stay relevant in a challenging market, we will continue to see the acceleration of cloud-based technologies. As such, we are making investments in product development and engineering resources to help customers reduce on-premises equipment — and the cost of doing business.”

Mr Sunil Gandhi, CEO at JLNPhenix Energy

“The upcoming budget can be a big opportunity for the EV industry as the government may focus on policy changes and on initiatives for infrastructural improvements to enable cost-effective Lithium-Ion battery production and faster EV adoption. We are expecting the government to make big announcements for EVs, the Energy Storage System (ESS) and EV charging infrastructure.

Reduction of imports duty especially on the parts used in the lithium-ion batteries can also be presented in the upcoming budget. There is a need to relook at the GST rate for Lithium-Ion batteries and reduce it from the current rate of 18% and match it with the GST rate applicable on EVs i.e. 5%”.

Dr Rajesh Verma, Dean of Strategy & Marketing at Mittal School of Business, Lovely Professional University

“The year 2022 had a significant impact on the education sector, from increased technology adoption to easily accessible online education and adaptable degree programs. Next year, the industry is anticipated to grow more due to the use of technology.

In that context, technological upskilling has become one of the key trends in education for 2023. Workflow automation is becoming more and more common across industries. The sharp transition from subject-based, rote learning to more skill-oriented learning methods will be a significant trend in 2023. Education experts emphasize the value of developing cognitive thinking, problem-solving, and management skills. The application-based syllabus, which steers clear of merely facts and figures and instead encourages students to apply what they have learned to real-life scenarios, is becoming more and more common.

In the modern world, detailing is also crucial. In line with that, a significant trend in education for 2023 will be the variety of subjects being taught in traditional college and university curricula. The course and subject options available today are, in fact, unconventional and revolutionary in many ways, ranging from applied linguistics to artificial intelligence, from food anthropology to ethical hacking, and from culture studies to abacus science”.

Mr Sachin Gaikwad, Founder & 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 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 microfin programs for unbanked segment should been taken into consideration”

Mr John Kallelil, Founder & CEO, XED

“The upcoming Union Budget is being presented at a tumultuous time in world history. While there have been a number of welcome economic reforms announced by the government in the past three years, Budget 2023 needs to be more strategic considering the global recession and inflation. From the EdTech perspective, there are a few key expectations for the Budget 2023 in India. One expectation is for increased government funding and support for online initiatives. Support from the government on subsidized rates and incentives for all, similar to Singapore would encourage innovation and growth in this sector. Tax incentives and financial benefits for EdTech players will boost the ecosystem substantially.

Additionally, there may be expectations for measures to improve digital literacy using technology. Overall, the EdTech community in India is likely hoping for a budget that recognizes the importance of education technology and takes steps to support its development and adoption”.

Another point to consider in Budget 2023 is Ease of Business. While tax certainty for businesses should continue and corporate rates should be maintained, Decriminalising GST and TDS will go a long way to bring down the already rigid and stringent law for direct taxes in India. This decade belongs to India and a friendly Budget 2023 is what we need to make it a roaring success, for individuals, businesses and the country as a whole”.

Mr Nirvaan Birla , Founder Birla Brainiacs

“This year we’ve seen many companies shutting down, and many people losing jobs. The government should come up with points that accelerate the ease of doing business for startups. There are many edtech startups that have suffered the loss due to high taxes & unbearable costs of business. This should be taken in account. The year 2023 already looks like a game-changer for the startup ecosystem. The government should encourage 100 percent digitization of companies. Last year’s budget was focused on providing quality education through the concept of digital universities which was a commendable step for students who’ve limited access to quality education. This year’s budget might have considerations for accelerating national education policy frameworks. If done properly, more funds can help accelerate the growth of education in India.”

As a CEO of a technology company, I am eagerly awaiting the Union Budget and the government’s policy decisions that will shape the future of India’s thriving startup ecosystem. We are at the cusp of a technological revolution and it is crucial that the government supports and empowers new-age startups like ours to innovate and thrive. The Union Budget is an opportunity for the government to invest in the future and create a conducive environment for tech startups to flourish. Government can bring policy reforms around skilling and talent development. The tech industry relies on a skilled and talented workforce. The government could invest in training programs, the institutionalization of XR, and initiatives to upskill educational institutes with advanced R&D labs.With an expansion in our immersive 3D & XR platform’s capabilities to solve the modern challenges of brand-consumer engagement, we are growing and innovating every day. We can’t wait to unfold the future of immersive experiences, unlocking tremendous potential and redefining the way customers experience a brand”.