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Key amendments proposed in Finance Bill 2023 in respect of defence sector
Budget 2023 being the last full budget of the NDA government, the Hon’ble Finance Minister had an uphill task to come up with policy measures to boost the economy amidst global inflation, fear of recession, geo-political conflicts and high fiscal deficit.
Given this backdrop, the slew of measures announced in the Budget focusing on boosting rural demand, additional push to ‘Make in India’ sentiment and extension of exemption for start-ups is a positive for the Consumer Products and Retail sector.
A game changing approach on “rural economy” through rural women empowerment, increased agri-credit target, fisheries scheme, Agri start-ups, Natural farming, etc should also help boost the rural demand for FMCG sector.
Continued ‘Make in India’ push through reduced import duties for ‘parts/ raw materials’ used for Electronics, Lab Grown Diamond seeds, Camera lens, TV Panels, etc should help boost demand while generating employment. Also, governments intent for higher capital investment and focus on Tourism would garner more employment opportunities and boost consumption.
Additionally, reduced personal taxation slabs and reduction in surcharge for ultra-rich should increase disposable income and fuel demand. While amendments such as inclusion of consideration received from non-residents on issue of equity shares into the ambit of taxability where the consideration received exceeds the FMV may increase litigation, the measures announced will surely play a pivotal role in providing the much-needed push to the sector which is a key contributor to the GDP.