budget news live: Budget 2023 Expectations News LIVE Updates: Tamil Nadu textile industry seeks export incentives in wake of Ukraine crisis, Europe slowdown - The Economic Times (2023)

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Budget focus: Employment generation, inclusive growth, says CARE Ratings survey Sectors that are buzzing ahead of Budget 2023 Fiscal deficit an important variable to track. Here's why Will Budget hike threshold for tax deduction at source on income from online games? Budget 2023 Expectations LIVE: FICCI wants Centre to scrap windfall tax Logistics sector: Budget Expectations from Shipsy CEO Budget 2023 Expectations LIVE: Budget 2023 expected to focus on job creation With multiple government schemes assisting in the growth of MSME ecosystem, there is an increasing demand for various financial and non-financial services that will help MSMEs in their growth journey. Incentivizing these service providers and improving reach to the MSME segment will significantly increase the supply. This will help MSMEs build systems, talent, capacity, infrastructure, access to capital and other ingredients to meet the growth demand The edtech segment foresees the upcoming Union Budget 2023 as remote and hybrid learning emerges in the Indian education landscape. The industry also oversees significant announcements from this budget to drive investment in this space along with favourable regulatory measures to build a conducive environment for digital learning. Toprankers believes that the government should envisage such a framework that promotes the collaboration of startups with government agencies to build capacity, share knowledge and ensure the nation's holistic development The modern workplace itself has transformed over the years and the concept of co-working is one such example. I feel that government should recognize the industry under special programs like REITs and provide some tax benefits to promote the growth of this sector. The second important thing is the TDS rate that is applicable to the co-working sector. Presently, the TDS rate for the co-working segment is 10% because we provide renting of both movables and immovables. As the shared space industry grows, a lower TDS rate will give this sector a major boost helping companies to provide real estate solutions to clients at economical rates, which will further help in a better flow of working capital Union Budget 2023 shall aim at policies and reforms which can significantly boost domestic demand and consumption. There are many ways to achieve this objective but considering constantly increasing urban salaried jobs, one of the important steps which the current Government shall pursue is revisions to the tax slabs for individual taxpayers. I believe that the current Government will consider implementing the Direct Tax Codes and significantly enhance the tax slabs for Individuals (10% up to INR 10 Lakhs, 20% up to INR 20 Lakhs and 30% in excess of INR 20 Lakhs). These slabs will significantly reduce the tax liabilities for Individuals and will lead to increase in in-hand surplus and spending power of consumers which in turn will result in increased demand and higher economic growth Budget 2023 Expectations LIVE: Tamil Nadu textile industry seeks export incentives in Union budget We expect the government to reconsider the current putative tax structure [for crypto] and bring it at par with other normal business activities. This will bring more transparency by enabling Indian crypto traders to trade on Indian exchanges rather than going to Peer to Peer and foreign exchanges. This will also encourage innovators and entrepreneurs to build this most innovative technology of our times, from India rather than from outside India An amnesty scheme for Customs and EXIM cases will also offer solace to parties that obtained licenses for duty-free imports under the EPCG scheme and Advance Authorization scheme but, have failed to meet their export obligations due to Covid-19 pandemic or otherwise. Interest (due to defaults) often exceeds the customs duties liability. An amnesty scheme for Customs will aid businesses clear these disputes, and move forward on a clean slate We anticipate that the budget for 2023 will pave the way for more crypto-friendly tax regulations, such as reduction of TDS u/s 194S to 0.01%, allowing set off and carry forward of losses and aligning tax rates to bring in line with other sectors Importers and exporters are faced with various EXIM related disputes. These typically involve questions of customs classification, valuation, exemption. Over the last several years hundreds of appeals, if not more, are pending at various appellate fora. Buoyed by the response to the Sabka Vishwas (Legacy Dispute Resolution) Scheme for settlement of excise and service tax cases, and Vivad se Vishwas for income tax matters, trade and industry awaits a similar dispute resolution scheme for Customs and EXIM matters. India may peg nominal GDP growth at about 11% in Budget 2023 Budget 2023 Expectations LIVE: Centre's borrowings may touch Rs 14.8 lakh crore and states' Rs 24.4 lakh crore in FY24 India may find it hard to maintain current growth momentum in direct taxes next year Budget 2023 Expectations LIVE: Ficci seeks increase in import duty of aluminium, aluminium products "Union Budget should create roadmap for sustainable growth in logistics sector" Union Budget 2023 might be presented in new Parliament building In 2023, we expect the government to extend the scope of these incentive schemes or introduce new schemes to boost IP and product design, manufacturing and generate new employment opportunities for the semiconductor industry in India "Make cooking gas affordable to poor households" Modi government's final full budget to focus on welfare spending

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Economic Times | 24 Jan, 2023 | 04:00PM IST

budget news live: Budget 2023 Expectations News LIVE Updates: Tamil Nadu textile industry seeks export incentives in wake of Ukraine crisis, Europe slowdown - The Economic Times (1)

Union Budget 2023 Expectations News Live: The textile industry of Tamil Nadu has sought export incentives and additional credit support in the budget for 2023-24 of the Union government to be presented in Parliament on February 1.

The Tiruppur textile industry which is the pioneer for exporting of textiles from Tamil Nadu and for that matter from South India has sought for credit support to the micro, medium and small scale units (MSME). The industry has sought credit support under the Emergency Credit Line Guarantee Scheme (ECLGS).

The exporters said that the economic slowdown and the uncertainty in the European market following the Ukraine war have led to a predicament for the industry which has been controlling the European market in the knitwear section.

K.M. Subramanian, President of Tiruppur Exporter's Association (TEA) in a statement said, "A 5 per cent interest subsidy on export credit is required for MSME and non-MSME manufacturers. It is to be noted that the buyers are delaying payment globally citing several issues."

The Textile exporters also said that Summer Good orders, a major order from European countries have fallen drastically for Tiruppur textile industry. Exporters and knitting company owners said that there is a decline of 30-40 per cent of the orders from the European market itself and this has affected the survival of the industry.

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Budget focus: Employment generation, inclusive growth, says CARE Ratings survey

  • 72% of the respondents felt that employment generation and inclusive growth would be the focus area of this budget.
  • 42% of the respondents expect the capex target to rise by up to 13% (range of Rs 7.5-8.5 lakh crore) in FY24 compared to FY23 target.
  • 50% of the respondents expect the growth in capex to be even higher.
  • 88% of the respondents felt that the government's focus on infrastructure spending will continue in FY24.
  • Employment generation emerged as the other critical area of government spending.


The rating agency said the gross tax revenue likely to exceed the budgeted target by Rs 3.5 lakh crore, while non-tax revenue could witness a shortfall owing to lower dividend transfers from the RBI.
With higher subsidies announced, expenditure is likely to exceed by Rs 3.3 lakh crore. The Central government's fiscal deficit could exceed the budget target by Rs 0.8-1 lakh crore in FY23.

Sectors that are buzzing ahead of Budget 2023

budget news live: Budget 2023 Expectations News LIVE Updates: Tamil Nadu textile industry seeks export incentives in wake of Ukraine crisis, Europe slowdown - The Economic Times (2)

Fiscal deficit an important variable to track. Here's why

According to mutual fund managers, the government will most likely meet its fiscal deficit aim of 6.4% of GDP in FY23 aided by robust tax revenue growth and higher than budgeted growth in nominal GDP.

The CSO, in its first advance estimates, has pegged the nominal GDP at Rs. 273 trillion as against the budget estimate of Rs. 258 trillion. Additionally, the government is likely to collect over Rs 3 trillion of excess taxes over and above the budget estimates.

Managers believe that this should offset the excess spending on food and fertilizer subsides and shortfall in disinvestment proceeds in the current financial year.

Will Budget hike threshold for tax deduction at source on income from online games?

The online gaming sector is one of India's fastest growing sectors. The penetration of 5G technology in 2023 will further accelerate innovation in next-gen gaming tech such as augmented and virtual realities, 360-degree video, Web3. With 15 billion downloads in 2022, India is the largest consumer base of mobile games in the world.

As per Lumikai report, the industry clocked a revenue of $2.6 billion in financial year 2021-22 and is likely to cross $8.6 billion by financial year 2026-27. The Animation, Visual Effects, Gaming and Comic (AVGC) Promotion Task Force was announced in Budget 2022 to boost the domestic capacities and develop the opportunity landscape for the world.

What can the sector expect?

  • Formalisation of self-regulatory regime along with National AVGC-Extended Reality Mission.
  • Allocation of funds for implementation of the recommendations of the AVGC Task Force
  • Setting up of the 'Game Development Fund'

Budget 2023 Expectations LIVE: FICCI wants Centre to scrap windfall tax

The government should scrap the windfall profit tax on domestically produced crude oil as the levy is adversely impacting the capex-intensive exploration of oil and gas, the industry said in its recommendation for the forthcoming annual budget.

India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. At that time, a Rs 23,250 per tonne (USD 40 per barrel) windfall profit tax on domestic crude production was levied.

The new tax, which was also slapped on the export of petrol, diesel and ATF, is calibrated every fortnight in step with international oil prices.

Industry chamber FICCI in its recommendations for the Budget, said such levy is in addition to all other existing levies.

"It is recommended that the Special Additional Excise Duty (SAED) on petroleum crude should be removed or if there is a need to continue the levy for some time as an extraordinary measure then the rate be changed to an ad-valorem levy of 20 per cent of incremental crude price over USD 100," it said.

The windfall tax, it said, was over and above the heavy burden of royalty (20 per cent of oil price for onshore fields and 10 per cent for offshore areas) and oil industry development (OID) cess (20 per cent of oil price).

Logistics sector: Budget Expectations from Shipsy CEO

“National Logistics Policy has been a landmark development in mobilizing the power of digitization to improve the state of logistics in the country. The budget will most likely be aligned to augment it through concerted efforts. This entails more investments in connectivity projects and building logistics infrastructure in various economic zones, especially under the PPP model, to expedite the execution of these," says Soham Chokshi, CEO and co-founder of Shipsy.

"In addition, India's last-mile emissions per delivery being higher than the global average is an area that needs immediate attention. Reducing miles travelled per package and ensuring that the distance is covered through eco-friendly modes can help lower carbon emissions. So generous incentives for the deployment of EVs in deliveries backed with stringent policies can prove critical to addressing climate change concerns,” he adds

Budget 2023 Expectations LIVE: Budget 2023 expected to focus on job creation

Analysts expect the forthcoming Union Budget to focus on job creation.

B. Gopkumar, MD & CEO, Axis Securities said as this is the last full-year Budget before the Union Election in 2024, it is expected to be growth-oriented.

The primary focus of the Budget is likely to be on job creation and investment-driven growth. The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing, Gopkumar said.

Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget. Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation.

FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action, Gopkumar said.

With multiple government schemes assisting in the growth of MSME ecosystem, there is an increasing demand for various financial and non-financial services that will help MSMEs in their growth journey. Incentivizing these service providers and improving reach to the MSME segment will significantly increase the supply. This will help MSMEs build systems, talent, capacity, infrastructure, access to capital and other ingredients to meet the growth demand

- Vipul Verma, Executive Vice President, Wadhwani Advantage

The edtech segment foresees the upcoming Union Budget 2023 as remote and hybrid learning emerges in the Indian education landscape. The industry also oversees significant announcements from this budget to drive investment in this space along with favourable regulatory measures to build a conducive environment for digital learning. Toprankers believes that the government should envisage such a framework that promotes the collaboration of startups with government agencies to build capacity, share knowledge and ensure the nation's holistic development

- Gaurav Goel, CEO, Toprankers

The modern workplace itself has transformed over the years and the concept of co-working is one such example. I feel that government should recognize the industry under special programs like REITs and provide some tax benefits to promote the growth of this sector. The second important thing is the TDS rate that is applicable to the co-working sector. Presently, the TDS rate for the co-working segment is 10% because we provide renting of both movables and immovables. As the shared space industry grows, a lower TDS rate will give this sector a major boost helping companies to provide real estate solutions to clients at economical rates, which will further help in a better flow of working capital

- Arjun Gulati, Co-Founder of Easydesq

Union Budget 2023 shall aim at policies and reforms which can significantly boost domestic demand and consumption. There are many ways to achieve this objective but considering constantly increasing urban salaried jobs, one of the important steps which the current Government shall pursue is revisions to the tax slabs for individual taxpayers. I believe that the current Government will consider implementing the Direct Tax Codes and significantly enhance the tax slabs for Individuals (10% up to INR 10 Lakhs, 20% up to INR 20 Lakhs and 30% in excess of INR 20 Lakhs). These slabs will significantly reduce the tax liabilities for Individuals and will lead to increase in in-hand surplus and spending power of consumers which in turn will result in increased demand and higher economic growth

- Sandeep Agrawal, Director & Co-founder Teamlease Regtech

Budget 2023 Expectations LIVE: Tamil Nadu textile industry seeks export incentives in Union budget

The textile industry of Tamil Nadu has sought export incentives and additional credit support in the budget for 2023-24 of the Union government to be presented in Parliament on February 1.

The Tiruppur textile industry which is the pioneer for exporting of textiles from Tamil Nadu and for that matter from South India has sought for credit support to the micro, medium and small scale units (MSME). The industry has sought credit support under the Emergency Credit Line Guarantee Scheme (ECLGS).

The exporters said that the economic slowdown and the uncertainty in the European market following the Ukraine war have led to a predicament for the industry which has been controlling the European market in the knitwear section.

K.M. Subramanian, President of Tiruppur Exporter's Association (TEA) in a statement said, "A 5 per cent interest subsidy on export credit is required for MSME and non-MSME manufacturers. It is to be noted that the buyers are delaying payment globally citing several issues."

We expect the government to reconsider the current putative tax structure [for crypto] and bring it at par with other normal business activities. This will bring more transparency by enabling Indian crypto traders to trade on Indian exchanges rather than going to Peer to Peer and foreign exchanges. This will also encourage innovators and entrepreneurs to build this most innovative technology of our times, from India rather than from outside India

- Avinash Shekhar, Founder and CEO of TaxNodes

An amnesty scheme for Customs and EXIM cases will also offer solace to parties that obtained licenses for duty-free imports under the EPCG scheme and Advance Authorization scheme but, have failed to meet their export obligations due to Covid-19 pandemic or otherwise. Interest (due to defaults) often exceeds the customs duties liability. An amnesty scheme for Customs will aid businesses clear these disputes, and move forward on a clean slate

- Ranjeet Mahtani, Partner, Dhruva Advisors

We anticipate that the budget for 2023 will pave the way for more crypto-friendly tax regulations, such as reduction of TDS u/s 194S to 0.01%, allowing set off and carry forward of losses and aligning tax rates to bring in line with other sectors

- Avinash Shekhar, Founder and CEO of TaxNodes

Importers and exporters are faced with various EXIM related disputes. These typically involve questions of customs classification, valuation, exemption. Over the last several years hundreds of appeals, if not more, are pending at various appellate fora. Buoyed by the response to the Sabka Vishwas (Legacy Dispute Resolution) Scheme for settlement of excise and service tax cases, and Vivad se Vishwas for income tax matters, trade and industry awaits a similar dispute resolution scheme for Customs and EXIM matters.

- Ranjeet Mahtani, Partner, Dhruva Advisors

India may peg nominal GDP growth at about 11% in Budget 2023

India is likely to peg its nominal gross domestic product (GDP) growth at around 11% in the annual budget next week, marking a slowdown from its estimate for the current fiscal year due to the prospect of weak exports, two government officials said.

Nominal GDP growth - which includes inflation and is the benchmark used to estimate tax collections - could be pressured by suppressed external demand next year due to a likely U.S. recession, said Reuters sources

Budget 2023 Expectations LIVE: Centre's borrowings may touch Rs 14.8 lakh crore and states' Rs 24.4 lakh crore in FY24

The Centre as well as state governments are likely to budget for higher market borrowings next fiscal even though the Union Budget may peg a lower-than-expected fiscal deficit at 5.8 per cent of GDP, a report said.

Icra Ratings anticipated that higher redemptions will lead to gross market borrowings of the Centre and states to rise to Rs 14.8 lakh crore and Rs 24.4 lakh crore, respectively, in FY24 from Rs 14.1 lakh crore and Rs 22.1 lakh crore, respectively, in FY2023.

The agency also said the Centre is expected to peg its FY24 fiscal deficit at 5.8 per cent of the GDP, a healthy moderation from 6.4 per cent of GDP projected for FY23.

India may find it hard to maintain current growth momentum in direct taxes next year

he Indian government may find it difficult to maintain the current growth momentum in direct taxes in the next fiscal year as GDP growth is expected to be lower, a government official said on Friday.

Finance Minister Nirmala Sitharaman will present the Union Budget on Feb 1, that will include projections for next year’s tax collection. Currently, net direct tax collection are growing at 19.5% year on year.

Budget 2023 Expectations LIVE: Ficci seeks increase in import duty of aluminium, aluminium products

Industry body Ficci has sought an increase in the import duty on aluminium and aluminium products to at least 12.5 per cent in the upcoming budget 2023-24, stating that the move will help curb dumping of aluminium products and encourage growth of the domestic manufacturing and recycling.

The present import duty on aluminium and aluminium products is 10 per cent. Aluminium, a resilient metal that retains its fundamental properties even when recycled, is widely utilised.

However, in recent years, there has been a visible surge in subpar aluminium imports, especially from China which constitutes over 85 per cent of downstream aluminium imports at present, Ficci said in a statement.

Moreover, India is also seeing aluminium imports from the US, the UK, Malaysia and the Middle East. Several of these nations support their domestic industries with concessions and benefits, including low interest loans and cheaper power tariffs.

"Union Budget should create roadmap for sustainable growth in logistics sector"

The upcoming Union Budget should not only create a roadmap for sustainable growth in the logistics sector but also incentivise the industry to adopt sustainable practices, operators said on Thursday.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2023-24 in the Lok Sabha on February 1.

FedEx Express Senior Vice-President Middle East Indian Subcontinent and Africa (MEISA) Operations Kami Viswanathan in a statement said, "We recommend the implementation of zero rating of Goods and Services Tax for all international transportation services.

"Most of the international GST/VAT legislations 'zero-rate' international freight transportation services. This would facilitate trade and align India with international tax practices as well as reduce logistics costs."

Union Budget 2023 might be presented in new Parliament building

During the upcoming budget session of the Parliament, Finance Minister Nirmala Sitharaman might present the Union Budget 2023-24 at the new Parliament building on February 1. Preparations for presenting this year's Budget is going on in full swing.

According to sources, the construction work for the new Parliament House is almost complete and is expected to be ready by the end of January.

Therefore, preparations have also started for the upcoming Budget session to be held at the new Parliament building.

Although a final decision on this count is yet to be taken, the Lok Sabha Secretariat has already started making new identity cards for the MPs of different parties for entry into the new Parliament House.

In 2023, we expect the government to extend the scope of these incentive schemes or introduce new schemes to boost IP and product design, manufacturing and generate new employment opportunities for the semiconductor industry in India

- Hitesh Garg, India Country Manager, NXP Semiconductors

"Make cooking gas affordable to poor households"

Warrior Moms, a national citizen action group, has written to Union Finance Minister Nirmala Sitharaman on Wednesday demanding provisions in the Union Budget 2023-24 to make cooking gas affordable to poor households across India.

The group has claimed that the letter has been endorsed by more than 20 noted personalities, including Congress MP Shashi Tharoor, TMC MP Saugata Roy, DMK MP D Ravikumar, National Conference MP Farooq Abdulla, NCP MP Vandana Chavan and Justice (retired) Anjana Prakash.

"The Pradhan Mantri Ujjwala Yojna (PMUY) introduced in 2016 has given over 8 crore households access to subsidised LPG connections. However, the insufficiency of the subsidy combined with the difficulty of getting a timely refill hinders millions of households from switching to LPG," the letter read.

Modi government's final full budget to focus on welfare spending

Wall Street major Goldman Sachs does not expect any significant reforms to be announced in this budget, but some details on incentives for 'Make in India', a roadmap on direct tax code implementation, and rationalization of subsidies, particularly fertilizers.

The Indian Union budget will be presented on February 1 as the final full-year budget under the current administration before the national elections in mid-2024.

This comes at a time when the government is trying to weigh expenditure priorities around: welfare spending before the general elections, the reduction of subsidies as commodity prices have declined from previous highs, incentives for promoting manufacturing in India, continuing the infrastructure build out and a higher allocation for defence, Goldman Sachs said in a report.

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