Union Budget 2023-24
According to FM Sitharaman Indian economy is projected to grow at 7% in the current year. This is the highest among major economies of the world. India is on the right track despite time of challenges. The government’s vision for the Amrit Kaal includes technology-driven and knowledge-based economy, with strong public finances and a robust financial sector. To achieve this ‘Janbhagidari’ through ‘sabka Saath, Sabka Prayaas’ is essential. National Rural Livelihood Mission has achieved remarkable success by mobilizing rural women into 1 lakh SHGs. Per capita income has increased to Rs. 1.97 lakh. In total 220cr. Covid vax for 102cr. people were given, 9.6 cr LPG connections were provided, and 47.8cr. JanDhan accounts were opened.
Budget is based on 7 priorities (Saptarishi-7 priorities):
- Green growth
- Youth power
- Inclusive development
- Reaching the last mile
- Infrastructure and investment
- Unleashing the potential
- Launch of digital platform
Key Highlights of Budget 2023-24:
- Increase in capital expenditure by 33% to Rs. 10 lakh crore, which would be 3.3 % of the GDP.
- The 50-year, interest-free loan to states for capex purposes has now been increased to Rs. 1.3 lakh crore, 30% more than what was allocated for 2022-23.
- 100 transport infra projects identified for end-to-end connectivity for ports, coal, steel, fertilizer sector.
- Creating urban infrastructure in tier 2 and 3 cities via the establishment of UIDF.
- 157 nursing colleges to be set up.
- A new programme for research in pharmaceuticals will be formulated and the industry will be encouraged to invest in research
- Sickle cell anemia elimination mission to be launched.
- One-time, new savings scheme for women with a tenure of two years. to offer 7.5 % interest rate with a partial withdrawal option.
- For senior citizens maximum deposit limit for the Senior Citizen Saving Scheme will be from 15 lakh to 30 lakh
- Investment limit in the Monthly income scheme (MIS) increased to Rs. 9 lakh, up from Rs. 4.5 lakh, for a single account. For joint accounts the limit has gone up to Rs. 15 lakh, up from Rs. 9 lakh.
- Millets, artisans, agri credit, micro-entrepreneurs, and small farmers-focus areas of the budget.
- Agriculture credit target expanded to Rs. 20 lakh crore.
- Decentralised storage capacity will be set up that will help farmers store their produce.
- The budget envisages India becoming a global hub for Sri Ann or Millets.
- Govt to reduce customs duty on shrimp feed to promote exports: FM Sitharaman
- Govt to provide a higher limit of Rs. 2 lakh per member for cash deposit and loans by Primary Agricultural Credit Societies
- PMKVY 4.0 will be launched covering new courses like coding, AI, robotics, 3D printing, etc.
- Measures to boost the tourism sector by selecting at least 50 destinations through challenge mode which will be developed as a complete package for domestic and foreign tourists
- States will be encouraged to set up Unity malls for the promotion and sale of ODOP (One District One Product), GI, and handicraft products.
- Govt to launch a Rs. 2,200 crore Aatmanirbhar clean plan programme.
- FM Sitharaman has proposed an outlay of Rs. 35,000 crore to achieve energy transition and net zero objectives and listed green growth among seven priorities of the government.
- With an outlay of Rs. 19,700 crore, National Green Hydrogen Mission will facilitate the transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country adopt technology and market leadership in this sector.
- Government will provide viability gap funding for 4,000 MWh battery energy storage systems.
- Detailed framework for pumped storage projects will be formulated.
- Interstate transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of Rs. 20,700 crore, including the central government support of Rs. 8,300 crore.
- A green credit programme will be notified under the Environmental Protection Act.
Reaching the last mile:
- Pradhan Mantri PVTG development mission to be launched
- Financial assistance to be given for sustainable micro irrigation in drought-prone regions of Karnataka
- More teachers to be recruited for 740 Eklavya Model Residential School
- Bharat SHRI to be set up for digitization of ancient inscriptions
- Basic import duty on compounded rubber increased to 25 % from 10 %.
- Basic customs duty hiked on articles made from gold bars.
- Customs duty on kitchen electric chimney increased to 15 % from 7.5 %.
- Customs duty on parts of open cells of TV panels cut to 2.5 %.
- Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing
- Propose to reduce the basic customs duty rates on goods other than textile and agriculture from 21 to 13.
- Railways capex outlay of 2.40 lakh crore, highest ever; 9x of what was in 2013.
- FM Sitharaman proposes to increase the income tax rebate limit from Rs. 5 lakh to Rs. 7 lakh in the new tax regime
- Govt to enhance grievance redressal mechanism for direct tax payers.
- Govt proposes to reduce the highest surcharge rate from 37 % to 25 % in new tax regime
- Govt proposes to make new tax structure as default tax option
- Govt proposes to cap deductions from capital gains on investments in residential houses to Rs.10 crore
Income Tax Slabs:
|New Tax Regime (Revised*)||New Tax Regime (Previous)||Old Tax Regime|
|Income||Tax Rate (%)||Income||Tax Rate (%)||Income||Tax Rate (%)|
|0-3 Lakh||NIL||0-2.5 Lakh||NIL||0-2.5 Lakh||NIL|
|3-6 Lakh||5%||2.5-5 Lakh||5%||2.5-5 Lakh||5%|
|6-9 Lakh||10%||5-7.5 Lakh||10%||5-10 Lakh||20%|
|9-12 Lakh||15%||7.5-10 Lakh||15%||Above 10 Lakh||30%|
|12-15 Lakh||20%||10-12.5 Lakh||20%|
|Above 15 Lakh||30%||12.5-15 Lakh||25%|
|*Effective from 1st April, 2023||Above 15 Lakh||30%|
- 100 labs for developing apps using 5G services will be set up in engineering institutions.
- NCCD taxes on cigarettes hiked by 16 %
- Revamped Credit guarantee scheme for MSMEs will take effect from 1 April 2023 with infusion of Rs. 9000 crore into the corpus.
- Government will provide R&D grants in lab grown diamond areas as well as consider custom duty reduction on key raw material i.e. lab-grown seeds.
Negative for life insurance companies:
- Income earned from all policies with a premium above Rs.5 lakh will be taxable.
Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014
Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, email@example.com
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing firstname.lastname@example.org with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail email@example.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL