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India Budget 2023 'Seven Priorities' to usher country towards 'Amrit Kaal'

Heightened focus on usage of AI, emerging tech, social entrepreneurship, enhanced R&D efforts coupled with more youth power shall see the country route marching to inclusive growth and prosperity, stamping this decade as India's decade.

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Budget Banner 2023

Key Highlights

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Inclusive development to be the central agenda to transform 'Amrit Kaal' regime for India

Capital expenditure outlay increased 33%, quantifying to 3.3% of overall GDP of the country for FY 2023-24

The effective capital expenditure of the Centre is budgeted is at ₹13.5 Lakh Crore, equivalent to 4.5% of GDP of the country. However, to ramp the infrastructure development at a higher rate the capex outlay is raised third time in a row to 33%. Of this ₹2.40 Lakh Crore is earmarked outaly for railways and is recorded as highest so far. 100 critical transport infrastructure projects, for the last and first-mile connectivity for ports, coal, steel, fertiliser and foodgrains sectors have been taken up on priority with an investment of ₹75,000 crore, including ₹15,000 crore from private sources.
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In an attempt to stay abreast with the need of change and in line with global paradigm it’s a must for a country like India to be a pioneer in AI. Hence, to embellish the AI capabilities this Budget rolled out plan to establish 3 CoE across top institutions to leverage best in class technology. Also, with the announcement to have a comprehensive 'Data Governance Policy' Government has determined a right chord to fuel more innovations and patents by startups and academia by leveraging anonymised data
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Hydrogen production and infrastructure set up plans for the country till 2030 through NGHM aims to push the country towards H₂ economy and be a net exporter. RE growth to continue and is likely to grow beyond 500 GW by 2030. Inter state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of ₹20,700 crore, including the central government support of ₹8,300 crore. Also, GoI will provide VGF for 4,000MWh BESS. Further, detailed framework for pumped storage plants would help increase the penetration this technology which remained ignored since ages.
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500 new 'waste to wealth' plants under "GOBARdhan" scheme to be set up to provide for circular economy. These will include 200 compressed biogas plants (CBG), including 75 in urban areas. Further, 300 community or cluster based plants shall also be set up at outlay of ₹10,000 Crore
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₹35,000 Crore of priority capital investment being set for energy transition and 13 GW of dedicated power transmission infra for RE projects set up in Ladakh has been earmarked. Further, exemptions on excise duty for GST paid upon CBG has also been done to avoid cascade of taxes
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100 critical infrastructure projects for ensuring last and first mile connectivity for ports, coal, steel, fertilizer and food grains sector will be taken on priority with an investment outlay of ₹75,000 Crores. 50 additional airports, heliports, water aerodromes & advanced landing grounds to be revived in order to secure regional air connectivity. Coastal shipping to attaract PPP investments and be aided with VGF
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#EninracIndiaBudget2023

Taking cues from the very ethos of “success planning” eninrac through its dedicated team of sector consultants and industry specialist would be doing a round up on India Budget 2023-24 with live feeds, structured surveys and quality polls to offer unmatched point of view to all clients

India Budget 2023 - Key Features

 
The Budget adopts the following seven priorities. They complement each other and act as the ‘Saptarishi’ guiding the nation through the Amrit Kaal:
 
  • Inclusive Development 
  • Reaching the Last Mile
  • Infrastructure and Investment
  • Unleashing the Potential
  • Green Growth
  • Youth Power
  • Financial Sector
 
India Budget 2023 - Key Highlights
 
Priority 1: Inclusive Development
 
  • Digital public infrastructure for agriculture will be built as an open source, open standard, and interoperable public good. This will enable inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for growth of agri-tech industry and start-ups.
  • An Agriculture Accelerator Fund will be set-up to encourage agri startups by young entrepreneurs in rural areas.
  • To enhance the productivity of extra-long staple cotton, a cluster-based and value chain approach through Public Private Partnerships (PPP) shall be adopted.
  • Atmanirbhar Clean Plant Program to boost the availability of disease-free, quality planting material for high-value horticultural crops at an outlay of INR 2,200 crore.
  • Support to making India a Global Hub for Millets: 'Shree Anna'.
  • The agriculture credit target will be increased to INR 20 lakh crore with a focus on animal husbandry, dairy, and fisheries.
  • One hundred and fifty-seven new nursing colleges will be established in co-location with the existing 157 medical colleges established since 2014.
  • A Mission to eliminate Sickle Cell Anaemia by 2047 will be launched.
  • A National Digital Library for children and adolescents will be set-up for facilitating the availability of quality books across geographies, languages, genres and levels, and device-agnostic accessibility.
 
Priority 2: Reaching the Last Mile
 
  • In the next three years, centre will recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students.
  • The outlay for PM Awas Yojana is being enhanced by 66 percent to over INR 79,000 crore.
  • In the drought-prone central region of Karnataka, central assistance of INR 5,300 crore will be given to Upper Bhadra Project to provide sustainable micro irrigation and filling up of surface tanks for drinking water.
 
Priority 3: Infrastructure & Investment
 
  • Capital investment outlay is being increased steeply for the third year in a row by 33 percent to INR 10 lakh crore, which would be 3.3 percent of GDP. This will be almost three times the outlay in 2019-20.
  • The ‘Effective Capital Expenditure’ of the Centre is budgeted at INR 13.7 lakh crore, which will be 4.5 percent of the GDP.
  • The 50-year interest free loan to state governments extended for one more year to spur investment in infrastructure and to incentivize the states for complementary policy actions, with a significantly enhanced outlay of INR 1.3 lakh crore.
  • The newly established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power, which are predominantly dependent on public resources.
  • A capital outlay of INR 2.40 lakh crore has been provided for the Railways. This highest-ever outlay is about 9 times the outlay made in 2013-14. 
  • 100 critical transport infrastructure projects, for last and first-mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. They will be taken up on priority with an investment of INR 75,000 crore, including INR 15,000 crore from private sources.
  • Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
  • Like the RIDF, an Urban Infrastructure Development Fund (UIDF) will be established through the use of priority sector lending shortfall.
  • All cities and towns will be enabled for 100 percent mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode. The enhanced focus will be provided for the scientific management of dry and wet waste.
 
Priority 4: Unleashing the Potential
 
  • For realizing the vision of “Make AI in India and Make AI work for India”, three centres of excellence for Artificial Intelligence will be set up in top educational institutions. 
  • To unleash innovation and research by start-ups and academia, a National Data Governance Policy will be brought out. This will enable access to anonymized data.
  • The PAN will be used as the common identifier for all digital systems of specified government agencies.
  • Vivad se Vishwas I: In cases of failure by MSMEs to execute contracts during the COVID period, 95 percent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings.
  • Vivad se Vishwas II: To settle contractual disputes of government and government undertakings, wherein arbitral award is under challenge in a court, a voluntary settlement scheme with standardized terms will be introduced. 
  • 5G Services: One hundred labs for developing applications using 5G services will be set up in engineering institutions to realize a new range of opportunities, business models, and employment potential
  • Lab Grown Diamonds: Lab Grown Diamonds (LGD) is a technology and innovation-driven emerging sector with high employment potential. These environment-friendly diamonds which have optically and chemically the same properties as natural diamonds. To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years.  
 
Priority 5: Green Growth
 
  • India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition.
  • Green Hydrogen Mission: The recently launched National Green Hydrogen Mission, with an outlay of INR 19,700 crores, will facilitate the transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. The target is to reach an annual production of 5 MMT by 2030. 
  • Energy Transition: INR 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by the Ministry of Petroleum & Natural Gas.
  • Energy Storage Projects: Battery Energy Storage Systems with a capacity of 4,000 MWH will be supported with Viability Gap Funding.
  • Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of INR 20,700 crore including central support of INR 8,300 crore.
  • For encouraging behavioral change, a Green Credit Programme will be notified under the Environment (Protection) Act.
  • GOBARdhan Scheme: 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme will be established for promoting a circular economy. These will include 200 compressed biogas (CBG) plants, including 75 plants in urban areas, and 300 community or cluster-based plants at a total investment of INR 10,000 crore.
  • Building on India’s success in afforestation, ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, will be taken up for mangrove plantation along the coastline and on saltpan lands, wherever feasible.
  • Coastal shipping will be promoted as the energy-efficient and lower-cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.
  • Adequate funds to scrap old vehicles of the Central Government. States will also be supported in replacing old vehicles and ambulances.
 
Priority 6: Youth Power
 
  • Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within the next three years. The scheme will also cover new-age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. To skill the youth for international opportunities, 30 Skill India International Centres will be set up across different states.
  • National Apprenticeship Promotion Scheme: To provide stipend support to 47 lakh youth in three years, Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme will be rolled out.
  • States will be encouraged to set up a Unity Mall in their state capital or most prominent tourism centre or the financial capital for the promotion and sale of their own ODOPs (one district, one product), GI products and other handicraft products, and for providing space for such products of all other states.
 
Priority 7: Financial Sector
 
  • A national financial information registry will be set up to serve as the central repository of financial and ancillary information.
  • For countries looking for digital continuity solutions,  the government shall facilitate the setting up of the Data Embassies in GIFT IFSC.
  • The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from INR 15 Lakh to INR 30 Lakh.
  • For FY 2023-24 the total receipts other than borrowings and the total expenditure are estimated at INR 27.2 lakh crore and INR 45 lakh crore respectively. The net tax receipts are estimated at INR 23.3 lakh crore.
  • The fiscal deficit is estimated to be 5.9 percent of the GDP.
  • To avoid cascading of taxes on blended compressed natural gas the excise duty on GST-paid compressed biogas contained in it is exempted. To further provide impetus to green mobility, customs duty exemption is being extended to the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles.
  • Proposal to increase the rebate limit to INR 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to INR 7 lakh will not have to pay any tax.
  • Credit guarantee for MSMEs: INR 9000 Cr infusion in the corpus from 1st April 2023.
 
 
 

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