As the pandemic panic gives in to sober reflection, the economy is poised to take off during fiscal 2023. This budget by the honourable finance minister is just the shot it needed to dash forward.
The past couple of pandemic-induced years has had their run. The next fiscal promises to be an uninterrupted galloping time for the Indian economy. This budget has laid out the track.
Finance Minister Nirmala Sitharaman has focused more on growth than driving consumption. The government’s plans to increase CAPEX on infrastructure and other projects will have a multiplier effect. Transit-oriented development of urban centres looks very promising for us at OYO. Hopefully, this will create a conducive environment to exponentially grow the app-based hospitality company, like ours.
The tourism and hospitality sector employing at least 40 million people is integral to the Indian economy, contributing to its GDP, foreign exchange and driving socio-economic growth. However, lending institutions have remained averse to credit and risk exposure on the hospitality projects.
A priority sector lending status to this sector would have helped lower costs of funds for hospitality projects. However, the Emergency Credit Line Guarantee Scheme (ECLGS) extension until March 2023 augurs well for this sector. Its guarantee cover has been expanded by INR 50,000 crore to a total cover of INR 5 lakh crore. We welcome this move as it will help many small players cope.
The budget has focused on high growth areas. Acknowledging start-ups as drivers for the Indian economy’s growth, the finance minister has also extended the existing tax benefits for such businesses by one more year till March 31, 2023.
Some other steps announced in the budget also point towards infusing a never-before dynamism in the Indian economy. Rolling out E-Passports embedded with chips will make the Indian passport a powerful force globally.
The announcement of the blockchain digital rupee introduced by the Reserve Bank of India is another very progressive move. The ball is now with India Inc. It remains to be seen if 2023 will prove to be a slam dunk year, as it promises to be.
