Budget Buzz: Expectation of 7% GDP, a strong indication of a robust growth story

New Delhi: Finance Minister Nirmala Sitharaman will present Union Budget for 2023-24 in the Lok Sabha on Wednesday (1st February 2023). CitySpidey is sharing a pre-budget expectations on behalf of some of the industry leaders.

Vidit Aatrey, Founder & CEO, Meesho, India’s fastest-growing internet commerce company told CitySpidey, “Budget 2023 gives our visionary government an opportunity to put our MSMEs in the fast lane, building on its proactive efforts to transform the small business economy. First, the government can bolster working capital for e-commerce suppliers by lowering GST on input services like logistics and facilitating refunds of accumulated input tax credit. Over April-November 2022, ~2.9 lakh sellers on Meesho dealing in products that attract <18% GST saw input tax credit accumulation of Rs 265 crore.”

“Second, expediting the implementation of GST relaxation norms for small online businesses will allow millions of them to realize their full potential. Further, with the National Logistics Policy bringing down costs for the ecosystem and strengthening distribution networks, the government could leverage the unmatched reach of India Post and Indian Railways to help our MSMEs meet rising e-commerce demand from small towns and villages in a fast and reliable manner, thereby boosting their competitiveness,” he added.

Miss Pooja Singh Rathore, Co-founder, Gigzeu, said, “Budget should focus on reviving the growth of private consumption (Low per capita consumption) and increasing the capital expenditure in the country. Indian growth has been primarily fueled by a middle class led consumption especially in urban markets. However, most of our population falls in the lower income category. This is the right time that we focus on providing the money and job opportunities to people at lower strata.”

“Cutting direct taxes & indirect taxes which impact middle & lower income group people will increase consumption level. Capital expenditure increase will create more employment and decrease the inefficiency in the system. Special package should be designed for financial/formal employment inclusion of domestic gig workers/work industry as this sector employs large populations which are informal in nature and key for increasing private consumption,” she added.

Commenting upon the economic survey, the Confederation of All India Traders (CAIT) has said that the expectation of 7% GDP is strong indication of a robust growth story based on strong fundamentals but widening of current account deficit is a cause of concern and it is hoped that suitable measures will be taken in the Union Budget which is to be presented tomorrow. The economic survey indicates that the budget will bring support policies for trade and industry to a greater extent.

CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal told CitySpidey that India's recovery from covid pandemic is laudable which helped and supported growth in the economy by increased domestic demand and increase in capital expenditure which is much different than that of other countries over the globe.They said that slow movement of economic growth over the globe has certainly affected India's exports in second half of year 2022. At a time when most of the Countries are facing financial crisis, it needs to be appreciated that the Central Government has kept the Indian economy moving in its right direction.

However, in the survey, the borrowing cost is projected to remain higher which is a cause of concern for the trade & commerce. Though urban employment rate has declined but Employee Provident Fund Registration has increased which is satisfactory. The increase in capex by the Central Government by 63% has helped development in business and increasing money circulation in the market.