Some of the other key measures aimed at industry were: i) extension in customs duty cut on imports of parts of mobile phones by 1 year, ii) reduction in customs duty on open cells of TV panels to 2.5% to boost TV manufacturing, iii) relief on Customs Duty on import of certain parts & inputs like camera lens, iv) extension of concessional duty on lithium-ion cells for batteries for one more year.
Besides, the number of basic custom duty rates on goods other than textiles and agriculture were reduced from 21 to 13, a move that would result in minor changes in taxes on some items like toys, bicycles, automobiles.
Among other things, Budget 2023 revamped the credit guarantee scheme for MSMEs with a fresh infusion of Rs 9,000 crore. This scheme, mandated to take effect from the start of the 2023-24 financial year, enables additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduces the cost of the credit by about 1 per cent.
For energy players, the Budget proposed to provide Rs 35,000 crore worth of priority capital for energy transition. Viability gap funding was announced for battery storage players. It was also proposed that the govt will support setting up of battery energy storage of 4,000 MwH.
To encourage the indigenous production of lab-grown diamonds, the budget proposed that a research and development grant would be provided to one of the IITs for five years.
Budget 2024: India Inc’s expectation
As Budget 2024 approaches, Indian corporates are hoping for the govt’s capex push to continue for some more time. Apart from sticking to the path of prudent spending and fiscal discipline, India Inc also wants Modi 3.0 to go for reforms in such areas as land, agriculture, capital, power and labour market.Companies also want the govt to extend the March 2024 sunset date for low corporate tax on new units. Another expectation is for the introduction of a new industrial policy and PLI for more sectors. Besides, the govt should bring measures to reduce costs of logistics and of doing business as well as take necessary steps to boost private consumption, a majority of companies say.
A reduction in corporate tax rates, and a rationalisation of TDS provisions and capital gains tax are also on India Inc‘s Budget wish list for this year. Companies also want the govt to reduce GST rate slabs to 3 from 5 with lower rates, and bring petroleum, power and realty under its ambit.