Industry welcomes Budget 2023
Published on : Thursday 02-02-2023
Industrial Automation presents the reactions of industry leaders to Budget 2023.
In what is widely seen as the last full Budget before general elections 2024, Finance Minister Nirmala Sitharaman has presented a budget that has been widely acclaimed for the massive spending on housing and infrastructure as with various other schemes to further boost manufacturing in India.
Industrial Automation presents the reactions of industry leaders to Budget 2023, as received from a cross section of the industry.
‘We at Delta have already implemented many programs for reducing carbon emissions’
-Niranjan Nayak, MD, Delta Electronics India
“We are firmly aligned with the Government’s vision of ‘AmritKaal’ which includes a technology-driven, knowledge-based sustainable economy. For the vision of 2070 Net-Zero CO2 Emission, investment in the energy transition will play a crucial role. We at Delta have already implemented many programs for reducing carbon emissions and signed up for many sustainable initiatives like RE100, net zero, green products, etc., for a greener tomorrow. Also, all our products offerings are energy-efficient and green solutions that aid in achieving the overall nation’s carbon footprint reduction targets ranging from power quality improvement products to green EV charging solutions, etc.
“The Budget 2023 further focus on sectors that include setting up labs for developing applications using 5G services, railways and enhanced focus on the smart city infrastructure to keep the economy on a steady growth, these are progressive measures and we feel that they will play a critical role for us to become key contributors in these areas and further development. The budget has particularly emphasized on efficiency and sustainability as the key driving forces in the coming years and let all key stakeholders identify and utilise these opportunities to drive the robust growth agenda of the country.”
‘We note that green growth is one of the government's seven priorities’
-Bhupesh Arora, Business Head, Digital Energy, Schneider Electric India
The Union Budget 2023 demonstrates the government's commitment to building and expanding the infrastructure sector to boost the economy. We welcome the government’s move to announce an enhanced outlay on capital investment by 33.4% to Rs 10 lakh crore, for the infrastructure sector. This will result in more employment creation, increased manufacturing capacities, and the energy sector's active participation in nation building. The budget focuses on states and cities to encourage urban planning reforms and making cities more sustainable. We applaud the government's investment of Rs 35,000 crore to achieve energy transition and net zero goals, and we note that green growth is one of the government's seven priorities.
We believe the move to create a new infrastructure finance secretariat, which will facilitate the private sector's investment in infrastructure projects, will play a crucial role. As the economy is expected to grow at a 7% annual rate, we feel this budget has taken all of the necessary steps to continue the growth momentum. We congratulate Union Finance Minister Smt. Nirmala Sitharaman for taking the courageous step of presenting a budget focused on growth.
‘We applaud the Government for focusing on green growth as one of the top four opportunities’
-Mahesh Palashikar, President, GE South Asia
“We welcome India’s Union Budget 2023-24, unveiled today. We applaud the Government for focusing on green growth as one of the top four opportunities for transforming the Nation during Amrit Kaal. Green growth will certainly drive cleaner economy and create large-scale jobs, and be a vital ‘Saptarishi’ priority to achieve net zero by 2070. We are encouraged by the commitment of capital investments of Rs. 35,000 Crores to accelerate energy transition towards net zero. The well-deserved recognition of pumped hydro storage as a robust storage solution and the proposed detailed framework is indeed a pragmatic step forward. As India moves towards round-the-clock cleaner power, a cost-effective storage solution like pumped hydro would be game-changer in providing sustainable, affordable and reliable power access for all citizens.
We are pleased to note the proposed investment for construction of the inter-state transmission system for evacuation and grid integration of renewable energy from Ladakh. The policy interventions in specific fuels like green hydrogen and wind must continue for India to succeed in achieving its long-term decarbonisation objectives. This is an exciting time of country’s green industrial and economic transition. We continue to remain committed as strong partners to help the Nation in its journey towards net-zero!”
‘The decision to set up laboratories in engineering institutions to help drive innovations’
-Mahesh Wagle, Co -founder and CEO, Cybernetik.
"We are pleased with the government’s sustained backing for ‘Make In India’, its flagship initiative aimed at turning the country into a manufacturing hub. To that end, the Finance Minister’s announcement slashing customs duty on machinery and components for the sector is a reflection of the government’s commitment to this vision. The reduction in duty is a step towards enabling the sector to explore the numerous possibilities that recent technological advancements have unveiled. Changes to the indirect tax regime reducing compliance burden on firms too will help the manufacturing sector in the long haul.
As a firm with Robotic automation at the very centre of its operations, Cybernetik is equally pleased with some of the policy decisions announced in the budget to ensure the trajectory of the sector’s growth continues to spiral upward. The decision to set up laboratories in engineering institutions to help drive innovations in advanced technologies bodes well for this sector, which will benefit from the influx of bold and new ideas.”
‘Duty relaxation will make electric vehicles more affordable’
-Pankaj Sharma, Co-Founder & Director, Log9 Materials
“The government’s decision to extend the concessional duty on lithium-ion cells for batteries for another year is definitely welcoming as it would sustain the ongoing momentum within the Indian EV sector. Considering EV batteries account for approx upto 60% of the EV cost, this relaxation will make electric vehicles more affordable and hence enhance the EV adoption rate."
‘The budget makes it abundantly clear that 2023 will be the year of digitalisation’
-Sudhir Kunder, Country Director, DE-CIX India
“Successes in the previous budget and our transformation into the 'AmrutKal' were highlighted today by the Honorable Financial Minister.
It's encouraging to see continued support for digital payment systems, digital document integration, and the creation of a digital public infrastructure for agritech and Fintech. Introduction of Digital lockers, Digital Library, E-Courts, and the promise of one hundred research labs to create applications for 5G were the landmark announcements.
Empowering youth with 30 Skill India Centers imparting skills like Coding, AI, robotics, mechatronics, IoT, 3D printing, and drones with other NextGen cutting-edge technologies will make them economically independent.
Establishing three Institutes of Excellence for Artificial Intelligence Development is a major step forward for our country and will help to create AI in India and make AI work for India.
Summarising, the budget makes it abundantly clear that 2023 will be the year of digitalisation, with demands for digitalisation rising throughout the year. As an Interconnection Platform, DE-CIX India is pleased to shoulder the duty of ensuring the long-term viability of India's Digital Infrastructure as "We Make Interconnection Easy. Anywhere".
‘The PM PRANAM scheme will boost the usage of green ammonia’
-Rahul Munjal, Chairman & Managing Director, Hero Future Energies
"Union Budget 2023 focuses on continuing the momentum towards a sustainable India. By earmarking green growth as one of the 7 key priorities, the Government has reaffirmed its commitment to decarbonisation and creation of green jobs. The allocation of Rs. 35,000 Cr. for priority capital investment towards energy transition will help catalyse our Net Zero journey. Viability Gap Funding for battery storage projects, significant outlay for grid expansion for Renewable energy and the green credit programme to incentivise sustainable behavior are all very welcome and timely steps that will accelerate clean energy adoption. The PM PRANAM scheme will boost the usage of green ammonia for production of environment friendly fertilizers. The policy for scrapping old vehicles and customs duty exemption on Li-ion batteries will also help fast track EVs and clean up the mobility sector.
While all the above announcements are very good and desirable, we would also like to see some additional measures such as extending PLI scheme to manufacturing of wind turbines and electrolysers, reducing GST on sale of renewable energy components and O&M costs, enabling low-cost project financing, deferring BCD on solar modules and cells till the domestic manufacturing ecosystem matures and establishing a stronger mechanism for monetising carbon credits. I would also like more clarity on how the government plans to achieve the target of producing 5 MMT of Green Hydrogen by 2030, especially on matters such as green hydrogen consumption mandates and its transport and storage options, among others."
‘Promoting sustainable growth is an opportunity for India to lead’
-Arundhati Bhattacharya, Chairperson & CEO Salesforce India
"The 2023 budget is a growth-oriented and inclusive one that lays a solid foundation and strengthens the economic outlook for India. We have a unique opportunity of being a demand-driven economy with a rapidly digitising population. The increased capital investment outlay has a multiplier effect on generation of employment opportunities and thereby better standard of living for citizens. India is the talent basket of the world and has one of the youngest populations globally; we have a tremendous opportunity to unlock the potential of the country's young workforce. The unified Skill India Digital Platform, addresses the imperative of businesses and Government to do more to address the skills gap enabling inclusive development of talent. Promoting sustainable growth is an opportunity for India to lead and has been essential and top of mind for all leaders; the focus on 'green growth' across sectors can unlock new economic opportunities for India. We are proud of the progress we have made over the last few years on Digital Public Infrastructure and a significant driver to this has been the innovation in Fintech, this budget is an impetus to further accelerate this growth with investments in AI, 5G, startups and more, accelerating demand and innovation at scale. Continued emphasis on Trust-based Governance and Ease of Doing Business, especially in a growth economy, has the potential to attract investments. The budget gives businesses India an opportunity to shine bright - domestically and internationally - ensuring they act, and fast."
‘The Government is walking the talk when it comes to Net Zero commitment’
-Manish Chourasia, Managing Director, Tata Cleantech Capital Limited
“Government is walking the talk when it comes to Net Zero commitment. Budget has taken bold steps in adopting new initiatives such as dedicated funds for energy transition and Green Hydrogen mission. In addition, the government has been proactive in identifying the need of storage systems to integrate the ambitious renewable energy capacity plans. Both the Viability Gap Funding for Battery energy storage systems and framework formulation for Pumped Storage Projects will pave way for accelerated adoption of renewable energy”.
‘The Gowardhan Scheme for promoting a circular economy is a landmark step’
-Vineet Mittal, Chairman, Avaada Group
“We complement the government for a growth-oriented budget. Govt. has remained committed itself to massive spending on infrastructure – the allocation of Rs 10 lakh crore will take India to the next orbit of growth. Interest-free loans to states for infrastructure will strengthen this further.
PM Narendra Modi's panchamrit vision for sustainable development has suitably been addressed in this budget. In this budget, there was a clear focus on green economy, with green growth being identified as part of the seven priority areas or ‘Saptrarishis’ for the government to guide India through the Amrit Kaal. Allotment of Rs 35,000 crore for priority capital investment for energy transition & net zero will help with the multiplier effect spanning sectors such as green fuel, green energy, green farming, green mobility, green buildings and green equipment.
The industry has long been advocating harnessing Ladakh's higher solar potential, and allocating capital to create evacuation infrastructure will greatly boost the industry. The Gowardhan Scheme for promoting a circular economy with a total investment of Rs 10,000 Crore is another landmark step and will give a fillip to greening the economy. Collectively, these announcements, with the earlier announced Green Hydrogen Mission with an outlay of Rs 19,744 crores, will help India to achieve its net zero targets by 2070.
We also applaud the government's efforts to focus on ease of business through the reduction of compliances and the reforms in contract dispute resolution. This will go a long way in enabling manufacturing, Make in India & Start-up India. Avaada supports the government's cause at Atmanirbhar Bharat when it comes to energy, and we will continue our efforts towards this goal."
‘We believe the Finance Minister has presented a Green Budget’
-Sumant Sinha, Chairman and CEO, ReNew Power
"We welcome the budget proposals presented by the Hon'ble Finance Minister. The focus of the budget on expanded support for infrastructure investment, growth of small industry and agriculture sectors, while committing to fiscal consolidation, strikes the right balance. In the context of overall geopolitical and economic outlook, the outlay of Rs 35,000 crore for energy transition and energy security is a significant step forward. We believe the Finance Minister has presented a Green Budget that demonstrates Government of India's unwavering commitment to achieving Net Zero by 2070.
For the clean energy sector, there are several welcome announcements. Support for Battery Energy Storage Systems (requested by ReNew Power during pre-budget consultations), the transmission infrastructure to evacuate power from Ladakh, the allocation for biogas to energy projects and the initiatives for scrapping of old vehicles of the central and state governments are all significant steps in the right direction. We look forward to seeing further details on the recently announced Rs 19500 crores allocation for the National Green Hydrogen Mission.
The budget will give a thrust to accelerating clean energy in India and ReNew Power is committed to support Government of India in this endeavour."
‘A digital leapfrog by following a bold, futuristic approach in the Union Budget 2023’
-Manpreet Singh Ahuja, Partner & Leader TMT, PwC India
“India continues its journey of taking a digital leapfrog by following a bold, futuristic approach in the Union Budget 2023 with a focus on CapEx led growth and sustained development, along with embracing emerging technologies. By promoting an AI ecosystem, 5G labs and setting-up skill centres for emerging technologies, India will get the interdisciplinary R&D boost.
Push for green growth will create the much-needed ESG driven innovation ecosystem. The boost for MSMEs and startups through credit support and tax incentives will help in strengthening India’s core. With custom duty reliefs on machinery and critical components, along with fiscal support for digital infrastructure and access to anonymised data, India is all set for its journey to become a strong manufacturing alternative for the world.”
‘Entity Digi Locker for business enterprises will facilitate online storing of documents’
-V Srinivasan, Chairman, eMudhra
“The emphasis on digitising India in the Union Budget is commendable. The vision for Amrit Kaal includes a technology-driven and knowledge-based India. The proposed National Data Governance Policy will help in boosting data led development and encourage technological growth. The push to create Centers of Excellence for AI will help create a digital ‘Aatmanirbhar’ India and promote AI based solutions across sectors. The introduction of Entity Digi Locker for business enterprises will facilitate online storing of documents which will accelerate the digital transformation of the country.”
‘The UBI-approved Kisan loan will help the agriculture accelerator fund’
Agnishwar Jayaprakash, Founder and CEO, Garuda Aerospace
"The Union Budget announced will certainly prove to be beneficial. Finance Minister Nirmala Sitharaman's announcement has highlighted many points for the scope and development of the start-up economy. Garuda Areospace's virtual skilling and training universities will aim to empower 1 lakh youth by providing them with training and skilling for becoming drone pilots. Alongside this, Garuda will also provide them with job opportunities. Machine Learning and Artificial Intelligence used in drones will help in monitoring soil and crop yield. DGCA-approved Garuda Kisan Drones will provide data that will help farmers enhance their crop production. Garuda's Seed dropping drones are already helping the government plant seeds, rejuvenate the forest. Till date, they have planted 75,000 seeds. These drones will further support the government's Misti scheme. The UBI-approved Kisan loan will help the agriculture accelerator fund and encourage agritech startups by helping young entrepreneurs in rural areas by distributing various agrochemicals thus further scaling it. Garuda drones will help government labs develop 5g enabled applications. Last year's budget helped Kisan Drone Loans and subsidies and it set up a platform for India to become a Global Drone Hub by 2030. This transformation will be centred around precision Made in India drones in the Agri Sector with helping the youth. The Agri tech startups will be funded. With this, farmers will be able to get subsidies and ensure Affordable precision agri technology is contributing towards enhancing food crop production and increasing yield which will directly contribute to increasing India's GDP."