Five sectors may get most weightage in Budget 2023, says Chairman of Anand Rathi Group

Anand Rathi of Anand Rathi Group anticipates the budget to place a significant emphasis on boosting rural consumption.

Anand Rathi of Anand Rathi Group anticipates the upcoming Union Budget will address how to strengthen the PLI scheme by bringing more industries within the scope of the policy and increasing the scheme's allocation.

He hopes that the Budget will emphasise the ecosystem of alternative energy, high-tech industries, infrastructure, digital technology, and the hospitality industry.

In India and around the world, the founder and chairman of Anand Rathi Group believes, the highest inflation rates have passed. He anticipates that inflation rates in 2023 will be lower than what is anticipated.

Unless the growth rate decelerates more than anticipated in 2023, neither the US Federal Reserve, nor the RBI are likely to reduce interest rates, says the Chartered Accountant with over 53 years of diverse experience.

In recent years, the PLI (production linked incentive) programme has been one of the most innovative industrial policies. The measures aim to transform India into a global manufacturing hub that meets both domestic and international demand. Through this programme, the government attempts to compensate Indian producers for higher production costs in certain areas (such as energy, interest rate, transportation and various operating costs).

On the longer term, structural reforms to improve the production process's efficiency are the solution to the current inefficiencies. In the short to medium term, compensation to producers through the PLI scheme can have a significant positive impact on the Indian manufacturing industry.

Therefore, I anticipate the upcoming federal budget to address how to strengthen the PLI scheme by bringing more industries within the scope of the policy and increasing the scheme's allocation.

Which are five key sectors that could receive the most weightage in the Union Budget 2023?

I anticipate the upcoming federal budget to emphasise the ecosystem of alternative energy (including hybrid/electric vehicles, batteries, and green energy), high-tech industries (including microchips), infrastructure (including roads, railways, and water), digital technology, and the hospitality industry.

Do you foresee any substantial measures to increase rural consumption?

On the longer term, structural reforms to improve the production process's efficiency are the solution to the current inefficiencies. In the short to medium term, compensation to producers through the PLI scheme can have a significant positive impact on the Indian manufacturing industry.

Therefore, I anticipate the upcoming federal budget to address how to strengthen the PLI scheme by bringing more industries within the scope of the policy and increasing the scheme's allocation. Which are five key sectors that could receive the most weightage in the Union Budget 2023?

I anticipate the upcoming federal budget to emphasise the ecosystem of alternative energy (including hybrid/electric vehicles, batteries, and green energy), high-tech industries (including microchips), infrastructure (including roads, railways, and water), digital technology, and the hospitality industry.

Do you foresee any substantial measures to increase rural consumption?

Globally and in India, the highest inflation rates have passed. I anticipate that inflation rates in 2023 will be lower than what is currently anticipated. Moreover, the growth outlook has begun to deteriorate. These factors should ideally result in at least a moderate reversal of aggressive rate hikes and liquidity withdrawal by the world's major central banks, including the United States and India. However, unless the growth rate decelerates more than anticipated in 2023, neither the US Federal Reserve nor the RBI are likely to reduce interest rates.

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Courtesy:

https://www.moneycontrol.com/news/business/budget/daily-voice-five-sectors-may-get-most-weightage-in-budget-2023-says-chairman-of-anand-rathi-group-9952161.html