Union Budget Reactions 2023

Today (February 1, 2023), our FM Nirmala Sitharaman presented the Union Budget which according to many has the potential to sustain & grow the Indian economy in the times when the world is facing recession.

Prominent changes will be proposed with respect to startup development in the country, here is a take from the Founder & CEO of QuackQuack, Mr. Ravi Mittal on the Union Budget, “The Budget 2023-2024 comes bearing good news; it shows the economy to grow at 7% this year, which is the highest among all major economies, and we couldn't be more optimistic. The focus on Startups in this year's budget is certainly encouraging. As a young company with 22 million users, we are hopeful that the announcement regarding Startups will only take us further ahead. It is exciting to see that India will have more Centres of Excellence for the development of Artificial Intelligence to help make AI work for India. We understand that the Data Governance Policy will be brought out to unleash innovation and research and is expected to encourage startups, but it is still too early to say how and on what this will be implemented”

The finance minister also emphasized on growing the usage of renewable energy and use of EV products in the Indian market, on the same Pritesh Mahajan, Co-founder and CEO of Revamp Moto commented, “In the recently announced budget, GOI has taken key initiatives in boosting the Green economy. Specifically in the EV sector, reduction in custom duty on lithium-ion cells will help in incentivizing the product cost to end consumers. Thus, resulting in boosting the sales of EV’s. This will be further catalyzed by the government's initiative of strict scrapping policy.  We look at increased CAGR of EV sector in the FY 22-23”

The budget also holds the vision of empowering India as a manufacturing powerhouse of the world and the 33% in capex is a prior indication of the same. Sharing his views on budget implications Rajesh Shah, MD & Chairman of Eurobond comments, “We express our strong support for the visionary budget presented by Finance Minister Nirmala Sitharaman. This budget places an emphasis on the comprehensive development of the economy through targeted investments in infrastructure, micro and small businesses, and affordable housing. The allocation of 10 lakh crore rupees for capital expenditures will bring the Capex/GDP ratio to a historic high of 3.3%. Despite the potential for a slowdown in the global market, it is amazing to see how this budget supports India's continued growth through the encouragement of investments in the manufacturing and export sectors, which will further lead to the creation of substantial employment opportunities. Overall, this budget masterfully balances the imperative need for growth and sustainability, keeping de-carbonization as a central consideration”

Our FM Nirmala Sitharaman also recognized the importance of technology, skill development and new innovations for the youth of the country in the Union Budget, all these initiatives will form the cornerstone for India’s success. Sharing his views on the same, Rishabh Khanna, Founder and CEO of Suraasa says, “The budget reflects the government’s commitment to improve access to quality education and to promote the use of technology. The establishment of three centers of excellence for AI will help advance 'Make AI for India' & 'Make AI work for India', fostering innovation and providing opportunities for students to learn the latest technology. The re-envisioning of teacher training programmes through innovative pedagogy, curriculum transaction, and continuous professional development will help address the challenges such as the shortage of qualified teachers and the lack of teachers’ career growth. The budget provides teachers with the resources they need to grow and succeed. This commitment to teacher growth will help ensure teachers are equipped with the latest knowledge and skills. The plan to set up 30 Skill India International Centers highlights the importance of skill development. These centers would also increase their chances of finding employment opportunities abroad. Moreover, the launch of PMKVY 4.0 under NEP 2020 would enable the youth to compete in the global job market and grow”

Adding to it,  Ritika Kumar, Founder & CEO of STEM Metaverse says, “The emphasis of the government on past mile access is extremely encouraging for the edtech sector. This involves digitization of content and training and skill development becoming part of every sector. Coming to the k12 school education bit, “We are thrilled to see the government's commitment to empowering students through innovative and futuristic learning solutions. The establishment of a National Digital Library for children and adolescents, physical libraries at panchayat levels, and a focus on teacher training are all steps in the right direction. As a company dedicated to providing cutting-edge edtech solutions, we are particularly excited about the plan to set up Centers of Excellence in Artificial Intelligence in top educational institutions. Additionally, the allocation for providing age-appropriate reading materials to inculcate reading habits is a step towards promoting literacy and lifelong learning. The commitment to establishing 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools over the next three years is a major boost for tribal students who will now have access to quality education and opportunities. With this budget, we see a promising future for education in India and look forward to supporting the government in its efforts to provide a brighter future for all students in the country”