The Budget 2023 will be the last full budget of the current government. The budget is speculated to be inclined toward the “Populous” side, as the precedent shown in the previous pre-election budgets. We have jotted down some sectors that may be unaffected by the Budget’s “Populous” or “Progressive nature”.
India’s Macro Goals
The Prime Minister, Mr. Narendra Modi launched Vision 2047 for India, a macro vision for the country in its 100th year of Independence and has called it an “Amrit Kaal”. The idea of modern India will be based on “Amrit Kaal”.
The current Budget of 2023 is expected to be in line with and complement the long-term goals of the nation as suggested by Finance Minister Smt. Nirmala Sitharaman in the previous budget.
The special focus for the Budget 2023
- Income tax slabs
Fertilizer & Chemical
The Budget of 2023 is speculated to announce Pro-fertilizers & Chemical policies for the fertilizer sector. The fertilizer sector has been in focus ever more since the beginning of the Russia-Ukraine War. The sector is one the most important sectors for the country to secure enough food crops for the population as well as export.
The country is a net importer of fertilizer, and the Russia-Ukraine war has pushed the production of fertilizers and chemicals futher low due to rising energy prices. The price of fertilizer was on an all-time high levels in Europe when the industries started closing on the back of the natural gas concerns.
The Government has hinted at a number of new policies to boost the production of fertilizers in the country and sustain the future demand based on our population and consumption growth.
The new “One Nation, one Fertilizer” policy has also been in talks for quite some time and maybe officiated by the government during the upcoming budget.
The sugar sector has shown promising growth as well as a profound interest from the government of India. The Government has set ambitious goals for Ethanol blending in the country and the trend is expected to continue in the future.
The ambition of 20% ethanol blending in petroleum products is near fruition and the Government is expected to introduce further measures in the budget to bolster the process of ethanol blending.
The infrastructure sector has been in the limelight since the government came into power. And India can be a destination for investments from all over the globe, thus must brace up for its modernization through the development of world-class infrastructure to accommodate the other development in other sectors.
The Budget 2023 should lead to the embarkment of new Infrastructure projects across the nation which would require huge investments.
The vision of Amrit Kaal can be achieved only if the government spends well on the country’s infrastructure. And Infrastructure will pave the way for the country’s fast-track development by complementing the other industries in their growth story.
Income Tax Slab
There is a lot of speculation in the market about the government increasing the income tax exemption slab from the existing 2.5 lakhs. This increase in the exemption can boost consumption in the economy as well as savings.
Part of the savings is also expected to be infused into the stock market either directly or through mutual funds in case if the exemption increases. The increased spending by people will also boost overall consumption in the market.
Therefore, the scenario of exemption limit extension will have multitudes of positive effects on the financial statements of companies as well as their stock prices.
India is ranked top 5 in biggest military spenders and also ranked top 5 in strongest defence powers in the world .The NDA government has stressed on complete reforms in the domestic defence industry. India has aimed at becoming a net exporter of defence goods and it has also been able to reform and reinvigorate the domestic defence manufacturing to a good extent.
The budget 2023 is expected to fulfilled the demands of funds as expected by the defence forces to modernise the current equipment and also produce latest equipments.
The duo rivals, China and Pakistan are expected to continue posing challenges at the borders. And India is expected to be prepared for a 2- Front war as per many Think tanks.