7. 5 Crucial Aspects of The India Union Budget 2018-19
2. 2019-2023 Forecast of the Indian Union Budget
1. Union Budget 2023: What to Expect From the Indian Government
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 will be agnostic to the Budget’s “Populous” or “Progressive nature”. (hyperlink)
Our 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 will 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.
- Fertilizers.
- Income tax slabs.
- Sugar.
- Infrastructure.
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 fertilizer 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 too low due to rising energy prices. The price of fertilizer was at an all-time high in Europe when the industries started closing on the back of the natural gas blockade.
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.
Sugar
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 we are expecting the trend 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 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.
Infrastructure
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 and that 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 may also be infused into the stock market either directly or through mutual funds.
The increased spending by people will also boost overall consumption in the market. Therefore, we can say increasing the exemption limit will have multitudes of positive effects on the financial statements of companies as well as their stock price.
The Budget can cause some increase in volatility in the market which could be on the upside or the downside. Uncertainties or surprises are often not taken well by the stock market. Thus, we must tread with caution in the market and try to hedge our portfolio against some bad news.
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