FM Sitharaman says Budget 2023 will follow spirit of previous one while warning of new global tariff walls

Finance Minister Nirmala Sitharaman on Friday said Budget 2023 would follow the spirit of the previous one and will set the tone for the next 25 years. She also warned of new global tariff walls and the "suspected long-drawn recession in Europe" while asking the industry to reset strategies quickly.

"The recession in Europe is going to impact exports and other investments. This is the best time for the industry to work out strategies for sourcing from India and produce from here," she said during the FICCI Annual Convention and AGM on Friday, December 16.

But at the same time, the FM cautioned against tariff walls.

"Countries want to fund their climate transition by raising tariff walls. When you will export your steel you will face tariff walls which will affect us. I have just quoted on steel, there may be more products," she said.

The FM said the world was coming to an understanding of "Europe plus 1, along with China plus 1" and that it’s "almost plus 2 now".

The FM prodded the industry to focus on manufacturing and on finding newer areas of services amid the "great reset" happening globally. "Indian startups have shown us the way," the FM said, asking the industry to keep a close watch on the innovations of startups to benefit in frontier sunrise sectors.

At the event, FICCI President and Hindustan Unilever (HUL) CMD said while the global economic situation remains tough, India is positioned to become the world's third-biggest economy.

"India is the only G-20 country which is on its way to achieving its climate change goals," Mehta said.