As we enter the New Year 2023, industries will be eager to see what the government has planned to unveil for them in terms of tax relief or policy changes in the upcoming Union Budget 2023. Union Finance Minister Nirmala Sitharaman will present the Union Budget for the current fiscal year to Parliament on February 1, 2023.

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:

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

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”.

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

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”.

Manu Awasthy- CEO and Founder, Centricity Wealth Tech

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.”

Kishore Ganji, Founder at Astir Ventures

Kishore Ganji, Founder at Astir Ventures

“The government has been incredibly supportive of the startup ecosystem and has played an indispensable role in nurturing the Indian startup space into what it has evolved currently. Some possibilities that we would like to see include sector-focused funds to ensure that founders are focused on creating ventures in diverse sectors. Another area where we would like to see further support is to provide incentives for the investor, such as tax rebates to promote startup investments as a widespread phenomenon”.

Scott Horn, CMO, EnterpriseDB

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.”

Sunil Gandhi, CEO at JLNPhenix Energy

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.G.Pardha Saradhi Varma, Vice Chancellor, KL Deemed to be University

Dr.G.Pardha Saradhi Varma, Vice Chancellor, KL Deemed to be University

“In the upcoming budget, we are expecting due consideration by means of higher budget allocations to infrastructure development for the effective implementation of the national education policy.  Separate budget allocation is appreciated for technological enhancement, knowledge upgradation, advanced laboratories, and software, which can bring transformation in learning systems, and changes in pedagogy. The expansion of digital infrastructure to promote online education is also the need of the hour. Policies encouraging research and innovation, intellectual property, accelerated programs in the education industry, and provision for lesser taxation are desired. Also, there should be more focus on schemes and policies that encourage skill development and entrepreneurship, seed fundings, capital funds amongst the aspiring future leaders.”