Finance Minister Nirmala Sitharaman on Monday presented the Budget for 2023-24 in Parliament. Following are the reactions of industrialists to budget proposals:

RPG Enterprises Chairman Harsh Goenka lends his support towards the Union Budget 2023 presented today in a series of tweets.

"Budget with vision, structure,discipline. Immediate benefits to all individual earners. Continues measured path of fiscal consolidation. Sets foundation to increase every Indian’s per capita income exponentially from 1.97 lakhs( 2400$).True to its name: 1st budget for Amritkaal," tweets Uday Kotak, managing director and CEO, Kotak Mahindra Bank.

Nithin Kamath, Founder & CEO Of Zerodha reacts to Budget announcements in a series of tweets with focus on retail investors.

The Managing Director and Group Chief Executive Officer (CEO) of ICRA, an investment information agency, Ramnath Krishnan sharing his thoughts on the budget said, “The Union Budget has provided a much larger-than-expected boost to growth-inducing capital spending, while at the same time managing a fair degree of fiscal consolidation.”

Krishnan added, “The Budget proposals are likely to enhance business, rural and taxpayer sentiment and consolidate India’s growth prospects in a gloomy global setting. With the Government’s borrowings similar to market expectations, the bond yields are likely to stabilise, which would also support the private sector capex plans.”

The Mahindra and Mahindra chairman took to his official Twitter handle to praise the 62-year-old for her speech. "Brevity has always been a virtue. @nsitharaman‘s shortest budget address may prove to be the most impactful…" Mahindra tweeted.

IT benefits in budget to propel deposit growth: Bandhan Bank MD

The income tax concessions proposed in the Union budget will promote more savings and propel growth in deposits, which in turn, will help the banking industry, Bandhan Bank Managing Director and Chief Executive Officer Chandra Shekhar Ghosh said on Wednesday.

In her budget speech, Union Finance Minister Nirmala Sitharaman announced no tax for those with an annual income of up to Rs 7 lakh under the new tax regime but made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA.

"For the last year, we have witnessed that the deposit growth is less than normal. The new tax norms proposed in the budget will encourage people to save more, and in turn, it will normalise the growth in deposits. It indeed will help the banking industry. When the deposit growth increases, the credit flow also increases," he said.

In what is being seen as a push for the salaried class taxpayer to switch to the new tax regime where no exemptions on investments are provided, the finance minister in her budget for 2023-24 allowed a standard deduction of Rs 50,000 under the new regime.

The old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakh.

Also, the basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. A Rs 2.5 lakh basic exemption limit is prescribed in the old tax regime.

Speaking on the budget proposal for simplifying the KYC process, Ghosh hailed it as “a noble effort”.

"The simplification of the KYC process will help bank customers who often complain about complications in the KYC process. The budget also mentioned that PAN cards would be used in all files. It is also a very good decision," he said, while speaking to Bengali news channel ABP Ananda.

The KYC process will be simplified by adopting a ‘risk-based’ instead of a ‘one size fits all’ approach, the FM said.

She also said the financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.

Ghosh also said the government's proposal for the micro, small and medium enterprises (MSMEs) was “very important” as the country's future growth prospect lies in the sector.

"In our country, the economic growth will come from the MSME sector as it contributes to the per capita income and generates employment.

“The credit guarantee scheme helps the bank take risks in lending in this sector," he said.

Last year, the FM proposed revamping of a credit guarantee scheme for MSMEs.

“I am happy to announce that the revamped scheme will take effect from April 1, 2023 through infusion of Rs 9,000 crore in the corpus. This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent,” she said.

Calcutta-based microfinance institution VFS Capital MD and CEO Kuldip Maity said the Union budget has “a greater emphasis on the rural sector, social sector schemes and infrastructure creation”.

“We also welcome the measures announced for the MSME sector. Rs 9,000 crore corpus for revamped credit guarantee scheme is expected to address the liquidity stress of micro enterprises and will push the next level of growth for the MSME sector in the country,” he added.

Hero MotoCorp Chairman Pawan Munjal hails Union Budget

Hero MotoCorp Chairman Pawan Munjal has called for a reduction in GST on two-wheelers to 18 per cent from current 28 per cent, while lauding the Union Budget 2023-24 as the dawn of a new high-growth economy, ensuring India's increased contribution to the global economy.

The veteran auto industry leader noted that the two-wheeler segment, which has been witnessing subdued sales over the last few years, needs government support in terms of taxation.

"There is a clear case for reducing the GST slab from 28 per cent to 18 per cent for the two-wheeler category, which has been adversely impacted over the past few years. This category is a means of mass mobility and should not be clubbed along with the luxury and sin goods category for GST slabs," Munjal said in a statement.

He also said: "Further, now that the GST collections are buoyant, I urge the GST council to take this up since this segment is an income multiplier and its growth will boost the economy." Hero MotoCorp, the country's largest two-wheeler maker, believes the focus on capital expenditure, agri-credit, infra-development credit, and lower tax slabs will result in higher disposable income in the hands of consumers and boost the growth of the auto sector, Munjal said.

Commenting on the overall Budget proposals, he noted that the focus on strengthening macroeconomic factors, with a balancing of old and new industries, traditional and tech sectors, rural and urban economy, fiscal prudence, and growth, will ensure inclusive and balanced progression for the country.

From a long-term point of view, there is also a clear focus on digitisation with three centres of excellence for AI (artificial intelligence) and green growth, Munjal said. "The stability of the policies, direction, and vision, as displayed through the budget today, will help the country continue to be a preferred investment destination," he stated.

The investment focus on the 'Saptarshi' (seven priority areas of the government), particularly urban infrastructure, will help develop tier 2 and 3 cities to participate in the growth of 'Bharat' and the overall economic growth of 7 per cent, he noted.

Munjal said that the finance minister presented an inclusive budget with a vision to develop Bharat and India and its various constituents simultaneously.

"It focuses on human capital through women empowerment, education, and investment behind youth power; rationalisation and fillip for the economy through initiatives for startups, and MSMEs, and capital outlay in urban and rural India," he added.

The Rs 20-lakh crore agri credit support will power the rural economy into high gear while the Rs 10-lakh crore capital investment outlay will also aid growth and job creation for the youth, Munjal said.

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