Budget 2023 Expectations updates: Freeze import duties for next five years, says GTRI

Thank you for joining our coverage of Budget 2023 Expectations.

Budget to see poll-oriented spending boost: Report

Ahead of the national elections, the last full budget of the Modi government is likely to boost welfare spending with a focus on rural and infra capex, according to a report. However, it may pencil in for a lower fiscal gap at 5.8 percent next fiscal, given the likely reduction in subsidies, even though nominal GDP growth is likely to fall by a third to 10.5 percent, it added. The government is likely to miss the medium-term fiscal roadmap of bringing down the fiscal deficit to 4.5 percent by FY26, given the overall domestic and global slowdown, as per the report by Swiss brokerage UBS.

Pharma, healthcare industry seek simplified regulations, research-based incentives

The government should take measures to promote innovation and R&D while simplifying regulations for the sector in the upcoming Union Budget, as per pharmaceutical industry bodies. Outlining the wishlist for the sector in the upcoming Union Budget, Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain said the domestic pharma industry is currently around $50 billion in size and aspires to grow to around $130 billion by 2030 and $450 billion by 2047.

Budget to continue social welfare spends as poor consuming less, making eco recovery unsustainable: Ind-Ra

Economic recovery has not yet become broadbased and sustainable as only creamier sections are consuming, India Ratings and Research said on Wednesday and added that the FY24 budget is expected to continue with social sector spending. The annual budget for the financial year 2023-24 will be presented in parliament on February 1. Finance Minister Nirmala Sitharaman will focus on making consumption demand resilient, boosting infrastructure and manufacturing capex, skill development and increasing productivity, fiscal consolidation and climate change in the last budget of this government, the agency said.

Budget 2023 expectations: 'Capital gain tax ruling affected private investments'

Gautam Sinha, co-founder and CEO, CBREX, "The capital gain tax ruling concerning the sale of unlisted securities introduced in budget 2021 disincentivises private investments, which in turn, adversely impacts the growth of startups. Under the current regime, gains on listed shares are considered long-term if held for 12 months and taxed at 11.96 percent whereas those on unlisted securities are considered long-term if held for 24 months and taxed at 23.92 percent. These factors are heavily stacked against the startup ecosystem."

Stock market investors expect balanced budget, focus on job creation, infra spending

Stock market investors are expecting a balanced Budget with a focus on job creation, increased spending on infrastructure, reigning in the deficit, and bringing the economy back on track, experts said on Wednesday. Stock markets have been subdued in the run-up to the Union Budget with BSE's benchmark Sensex is almost flat so far this month. Even the corporate earning season failed to excite the markets, while some indices like IT and bankex have seen some positive movements. The muted performance of the markets could be due to Foreign Portfolio Investors (FPIs) moving funds out of India as they are looking for emerging markets with cheaper valuations. They have taken out over Rs 16,500 crore from domestic equities so far this month.

Budget 2023 expectations: 'Give real estate sector industry status'

Ramesh Ranganathan, CEO, K Raheja Corp Homes, said, "Firstly, the real estate sector needs to be given industry status. We expect policies and reforms that will further boost the industry, like tax breaks, single-window clearance, encouragement of home purchase and rationalization of GST for raw materials."