Session on Implications of Union Budget 2023-24

Presentation of Union Budget is an important event in the annual economic calendar of India. The budget carries various policy announcements, including new schemes and amendments in direct and indirect taxation that affect trade and industry. In order to discuss the implications of Union Budget on trade and industry, WTC Mumbai organized this interactive session.

Mr. Sujan Hajra, Executive Director & Chief Economist, Anand Rathi Institutional Equity pointed out,“The Union Budget 2023-24 has provided significant thrust on public investment, which will support growth of construction, cement, building materials and infrastructure sectors. As a result of sharp expansion in public investment, the share of capital expenditure in total government spending will rise from 13% in FY19 to 22% in FY24. The budget will also have a favourable impact on the automobile sector given its thrust on green hydrogen and battery storage systems. Another welcome feature of the budget is its commitment to fiscal consolidation and reduction of fiscal deficit so that more capital is available for private companies to borrow and invest. I expect the 10-year bond yield to ease 30-40 basis points in the next six months and this will reduce borrowing cost for private companies.”

Mr. Firoze B. Andhyarujina, Senior Counsel, Supreme Court of India, highlighted the key direct tax provisions in the Finance Bill. Specifically, he discussed the amendment in section 43B of the Income-tax Act which provides tax disincentive for companies delaying payment dues to micro and small enterprises. 

Mr. Rahul Renavikar, Managing Director, Acuris Advisors Private Limited, explained the key budget provisions for micro, small and medium enterprises (MSMEs). He suggested existing and aspiring exporters to avail of incentive under the newly introduced SPIC (Studies, Publicity and International Cooperation) scheme, where the government offers subsidy for marketing expenses incurred by MSMEs abroad.

Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, World Trade Center Mumbai pointed out that budget had enough positive announcements to promote economic growth and employment. He was of the opinion that the government has rightly increased allocation for infrastructure, railways, green energy, electric vehicles and natural farming which will not only support GDP growth, but also sustainable growth.

Speaking about the pending government reforms to support ease of doing business, Dr. Kalantri highlighted that it’s been more than five years since the implementation of GST and this is the time to simplify the system by reducing the number of tax slabs, bringing real estate and fuel under the GST net to boost housing sector and rein in inflation. ‘‘India needs a simplified tax system that will reduce cost of compliance and incentive for tax evasion” he said.  

The event was attended by members of trade & industry, tax professionals, self-employed entrepreneurs, members of academia and financial institutions.

In Photo (From left toright): Mr. Firoze B. Andhyarujina, Senior Counsel, Supreme Court of India, Dr. Vijay Kalantri, Chairman, World Trade Center Mumbai, Mr. Sujan Hajra, Executive Director & Chief Economist, Anand Rathi Institutional Equity and Mr. Rahul Renavikar, Managing Director, Acuris Advisors Private Limited