Will the Union Budget impact your life and style?

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The 2023-2024 Union Budget was announced and what impact will it make on your life and style in the coming year? While some industries had favourable results that will spur the growth of the sector, others were rather underwhelmed.

Experts in the field express their views:

Eating out?

The F&b industry benefits from the personal tax relief measures outlined in the budget. Commenting on the same, Merrill Pereyra, Managing Director, Pizza Hut India Subcontinent said, "The Food Services industry relies heavily on discretionary spending and therefore stands to gain from the personal tax relief measures announced in the budget, which will further catalyze consumption. The focus on domestic tourism will also cascade positively across our sector, by opening up new markets and allowing for greater expansion, especially in unpenetrated locations."

While on the other hand, Debaditya Chaudhury, Managing Director of Chowman, Oudh 1590 & Chapter 2 expresses disappointment stating, "I think it's a little disheartening for the food and beverage industry, that there was no mention of any relief or support for us in the Union Budget 2023-24 declaration. This year, we were hoping for extended moratoriums on interest payable and reduced tax structure to help us regain our balance sheet's health. Sadly, the government has ignored us even though the industry has been resilient and has recovered from the pandemic on its own. While other sectors are laying people off, the F&B industry has been generating jobs, adding to the GST credit without even any input credit."

Your next adventure

A growth-oriented aimed to help India weather the current global economic challenges says Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts. "With the Finance Minister announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country's tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The Finance Minister also highlighted that states will be encouraged to set up a "Unity Mall" in the capital city or most popular tourist destination for the promotion of the 'One District, One product' theme. Such initiatives will also help unleash the potential taped in the tourism sector."

Paritosh Ladhani, Joint Managing Director, Sincere Developers, which owns Taj Hotel and Convention Centre Agra said, "The Union Budget 2023-2024 presented by the finance minister highlighted that the Indian economy is on a growth trajectory in spite of the global economic challenges. In her Budget speech, the FM emphasized that the country offers "immense attraction" for both domestic and international tourists. With the government announcing that states will be encouraged to set up a "Unity Mall" in the capital city or most popular tourist destination for the promotion of the 'One District, one product' theme, such initiatives will help to unleash the potential vested in the tourism sector. I also expect that the change in tax regime announced in the Union Budget will result in more disposable income in the hands of middle-class consumers - which I expect ultimately will spur consumption in activities like travel. Regional connectivity will see a boost with the plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds."

"The government's focus on tourism in the budget by giving it a top priority is commendable. The allocation of resources highlights the importance placed on boosting employment through the tourism sector," said Asif Fazlani, Managing Director, of Fazlani Nature's Nest. "The budget demonstrates the government's commitment to the holistic development of the industry. The plan to develop 50 tourist destinations for both domestic and international tourists will revolutionize the tourism industry in India."

About the provisions of the tourism industry in the Union Budget 2023-2024 Priya Thakur, founder, Larisa Hotels and Resorts said, "We are very pleased to see that the Union Budget for 2023-2024 includes funding for the development of tourist sites in India for both domestic and foreign visitors. With LaRiSa's strong presence in popular tourist areas like Goa, Manali, Shimla, and Mussoorie, we hope to see an increase in travelers. With a boost in infrastructure and enhanced air connectivity, we hope to welcome guests from varied locations. LarRiSa has always supported and endorsed the spirit of uplifting the local community. With the promotion of local tourist spots and spaces, it will not only result in the upliftment of these cities but will also provide more jobs and opportunities for the locals all around the year."

Sandeep Arora, Director of Brightsun Travel India added, "Indian economy is expected to increase by 7 per cent in the year 2023 and tourism is one of the major areas that contribute to it. Development of tourist infrastructure is the need of the hour so the announcement that 50 tourist destinations will be developed for domestic and international tourism is a positive step. Plus, the border village tourism initiative will bring tourists to these far corners helping the local communities earn livelihood and prosper. This year's budget also saw the highest-ever capital outlay of 2.5 crores for the railways which may provide the push needed for the growth of domestic tourism in the country. Air travel is also expected to rise. Specific focus is needed for the tourism industry to rebound back to pre-pandemic levels and we hope that these initiatives will provide much awaited-relief to the Indian tourism sector."

All those gems

The budget for Gems and Jewellery now has more room for discretionary spending, increasing consumer purchasing power. Amit Pratihari, Vice President, De Beers Forevermark said, "For natural diamonds, we've seen an encouraging trend over the past few months where consumers are purchasing items that hold meaning and value. Natural diamonds continue to be sought after due to their inherent preciousness. Pricing has also remained steady, and we are optimistic it will become stronger. As customers continue to value what is natural and genuine, diamonds will always be in demand."

"Gem & Jewellery Export Promotion Council (GJEPC) applauds the pro-reform and export growth-oriented budget by Hon. Finance Minister... In the first Budget of Amritkaal, Hon. Finance Minister has listed 7 priorities as she outlined people-centric agenda of ease of living and doing business to take on global challenges as well as for stimulating exports... GJEPC welcomes the reduction of Customs Duty on LGD seeds to zero from 5 per cent. It will ensure India's end-to-end world leadership in rough-to-finished lab-grown diamond and jewelry manufacturing. In addition to that government. has also accepted to have clear segregation Customs (IT HS) codes for Silver and Platinum studded Lab grown jewelry for better differentiation and identification at the consumer level," added Vipul Shah, Chairman, GJEPC.

Hot Wheels

"The Union Budget 2023-2024 announced by Finance Minister Nirmala Sitharaman is progressive, prudent, and growth-led, with an eye to providing impetus on the savings of the public," said Banwari Lal Sharma, CEO, of Consumer Business, CarTrade Tech Ltd. "It is a 'green budget' for the automotive and mobility sectors. The sustainability measures taken through announcements on green hydrogen and other energy sectors will help in furthering the government's target of carbon neutrality by 2070. The increased Capex outlay on energy transition is likely to spur investments and skill development in a green economy. The viability gap funding for battery energy storage systems is also likely to create critical infrastructure, while custom duty reduction on capital goods for Lithium batteries manufacturing will facilitate faster adoption of EVs. An increase in spending on infrastructure, the setting up of 50 new airports and heliports, and the creation of 100 transport infrastructure projects are welcome moves, in addition to the central support for replacing old vehicles. All of these should drive consumption and overall demand of vehicles."

Tech And E-Commerce

Abhijit Bhattacharya, Founder & CBO, OneGreen said, "The Union Budget has sent the right signal to investors, businesses, and citizens that green growth is a priority for India. At OneGreen, we are extremely thrilled with the government's focus on the environment and ensuring that people switch to a more sustainable way of life for without this, the health and wellness of the nation in its truest sense can never be achieved. We are encouraged by the focus on sustainable agriculture practices, including organic farming initiatives backed with incentives for over 1 crore farmers which will help ensure that chemical-free food ingredients are used in food and related products. The Green Credit Programme under the Environment (Protection) Act to incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies will help each and every one of us inculcate sustainable habits and increase investments in the sector. We also welcome the government's move to increase its expenditure on building sources of renewable energy. Further tax exemptions such as the reduction of GST rates on electric vehicle components and waivers or subsidies given out to households using renewable energy systems will contribute greatly towards creating an environment-friendly infrastructure in India. Indians in the post-pandemic era have understood the importance of living a green and clean life and this budget with its focus on behavior change will steer the population in the right direction. We look forward to seeing how this budget shapes India's future trajectory toward sustainable development goals!

"Union Budget 2023 is very promising for the financial sector and carves out an excellent path for the future with a focus on growing the MSME sector, pushing infrastructure development, and enabling personal consumption. Extension of the ECLGS scheme along with other measures would have a huge impact on promoting growth. The finance minister has taken substantial steps to reduce credit costs for the sector which would help in promoting employment and growth. Boosting MSMEs through easier credit would aid growth, ease tax liability, and promote consumption. Focus on reducing credit costs would also boost profitability and help create more jobs. Additionally, increased expenditure on infrastructure and personal tax reforms would aid create a positive sentiment in the economy and put India on a path for rapid development," added Saurav Ghosh, Co-founder, Jiraaf.

Healthcare

Technology integration an advantageous effect on the healthcare industry that will encourage its expansion. Snehal Shah, CEO at Fullife Healthcare Private Limited said, "Integration of technology has a definitive impact on our future prospects. Greater awareness towards healthcare and a focus on boosting exports for the sector of innovative products in Pharmaceuticals & Nutraceuticals are outstanding long-term initiatives that were being talked about in this year's budget. The Indian industry is well-poised with a good ecosystem, and companies like Fullife that focus on innovation lead delivery dosage forms will be highly encouraged in such a supportive environment. This year, the Centre has also increased its allocation to the Ministry of Health and Family Welfare and has invested in focus on natural products like Millet and healthcare, we see continued growth in concepts that associate with good health. Being a company from India that exports nutraceutical products across 30+ countries now, a simplified tax structure will help towards the promotion of exports and boost domestic manufacturing."

In this Union Budget, the government has focused on some of the core needs of the health and wellness sector. "The plan to establish 157 nursing colleges as collocated facilities alongside medical colleges will help cover the shortage of trained healthcare workforce and lead to greater healthcare coverage of the out-of-hospital medical services. The plans to provide access to ICMR labs and other R&D facilities as well as a collaborative approach to pharmaceuticals research and encouragement of private sector investments, multi-disciplinary training for R&D and manufacturing of high-quality medical devices, and various other such measures are going to augur well for the overall universal healthcare access and quality in India," said Meena Ganesh, Co-Founder & Chairperson, of Portea Medical.

"However, it is also important to note that while various aspects of healthcare and health tech have been touched upon, we looked forward to some announcements in the area of accessibility and affordability of personalized care for the masses. A crisis situation like the pandemic toppled healthcare systems globally and some clarity on how the country will handle a similar situation in the times to come was needed."

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