The expectations were higher among the industrialists because this was the last full-fledged buget before the 2024 elections. Many were expecting the budget to election friendly, it turned out to be budget which will lead India to the ladder of growth.
In FY23, the economy will be seeing a 7% growth. The capital investment has crossed Rs.10 lakh. This itself shows the appetite of a growing economy. The main aim of the rise is to become inclusive. Through the budget, the government wants to focus on the infrastructure which will be the key growth to the economy.
The budget has also encouraged the states to invest more on infrastructure. In a survey conducted by the Economic survey, it was seen that there will be challenges which will have a major impact on the inflation all across the globe. The FY will have an export rate of Rs.450-460 billion. With the increasing utlization, free trade agreements and finalization of the FTA. Countries like UK, Canada and GCC are expected to provide market access which will be become better with the new fiscal year.
The FLI scheme will be providing additional information which will be rolling out recently. As the budget along with the allocations, there is an increase in the competitiveness to various sectors. This will reduce the custom duty. There will be customs duty implied on many products which will be increasingimport substitution. With the rise in the tariff, polymers,toys and parts of tpys along with bicycles, SKD/CKD in automobiles will be discouraging the imports.
There is a reduction seen in the import duty on products such as enthul alchohol, acid grad fluorspar, crude glycerine that adds competitiveness of chemical sector and reduce the duty on fish meal, krill meal, fish lipid oil, algal rpime, mineral and vitamin premixes which are used in the manufacture. There is a major focus in the infrastructure that will help in the gems and jewellery sector. This is considered as a larger employee.
This will encourage the mobile and the electronic sector. The duty on mobile is cut down to 2.5%. The reduction will add value to the sector and help India in developing the component manufacturer in industries such as mobile and electronics. The credit cost will have to be faced by the export sector mainly. For this, the government has provide an outlay for the equalization scheme. The MSME scheme too has increased by 24%. It has seen a jump from Rs.2376 crore to Rs.2,932 crore. Some more relief can be expected under the scheme.
The allocation of the market is up by 25%. This helps in better showcasing of all the Indian products to international border. The world in functioning equally between virtual and physical. The agricultural sector too focuses on the Transport and Marketing Assistance (TMA). This provides a support to the international freight and still eludes it.
