Union Budget 2023-24: Finance Minister Nirmala Sitharaman will be presenting the annual union budget for FY 2023-24 on February 1, 2023. Various sectors of the economy are expecting measures that would support them to be announced. The lifestyle and wellness industries are no different. Experts from the industry have requested the government to support D2C brands with their own manufacturing units with special manufacturing zones.
We’ve witnessed how the government has been working to encourage the growth of new businesses in India. So, it’s no surprise that the start-up sector has high hopes for this year’s budget. Sargam Dhawan Bhayana, Director of Tressmart Marketing PVT LTD said, “The start-up culture has gained traction, opening up new opportunities for emerging economies and small businesses. The budget is certainly expected to highlight and inspire further expansion of these entrepreneurial spirits. We anticipate government spending on long-term employment at all levels. Furthermore, it is expected that supply chain financing will grow as a result of the challenging process of obtaining financial backing from banks and alternative finance. This would undoubtedly assist MSMEs in becoming self-sufficient and stable, thereby promoting their growth.”
Indicator of sustainable employment, sustainability is the need of the hour. When it comes to economic and environmental practices, he says, “India must shift its focus to biofuels and green hydrogen, which can replace petroleum imports while also being environmentally and technologically secure. As a result, a PLI program aimed at this industry would provide the needed impetus for the alternatives’ already emerging manufacturing infrastructure. Also, a positive cash flow push can help the rural economy.”
Vivek Gupta, Co-founder & Director, YourSpex added that the government is keen to accelerate the integration of MSMEs in global trade. “I am hopeful that the government will announce measures in the Union Budget 2023-2024 that will promote the long-term growth of the MSME sector through easy access to finance and extension of schemes like the Emergency Credit Line Guarantee Services (ECLGS) to meet their capital needs. Currently, India’s 63 million MSMEs contribute to over 30 per cent of the country’s gross domestic output (GDP). As per industry estimates, the India Eyewear Market size is expected to reach nearly US$ 9.69 Bn. by 2027 with a CAGR of 11.90 per cent during the forecast period. There is a need to promote the effective use of Information Technology and research and development (R&D) in the vertical will help the local players operating in the eyewear market to compete with their global counterparts.”
With a likelihood of revised tax slabs, the Government is expected to favour Small and Medium Enterprises through lowered GST and tax levied on start-ups too. “Like many economists, we keep this under consideration that the introduction of instruments like Venture Debt Capital will be a major step. Given the people’s belief that the drive toward privatization should continue, helping the case that the Union Finance Minister is urged to lower import taxes on crop protection chemicals on behalf of ACFI,” Aakash Anand, Founder Bella Vita Organic said.
Financial incentives no doubt will push the participants in the private sector. It is predicted that this budget would place a priority on long-term growth through promotions of capital expenditure while also attempting to strengthen the financial system. The focus of this budget will emphasize on energy, healthcare and pharma, specialty chemicals, technology, and manufacturing.
Vikram Goel, MD, Unox India further explained, “The Union Budget 2023 has the potential to transform the D2C sector into a more vibrant and inclusive one and Unox India is looking forward to it with a lot of hopes and expectations. As the demand for direct-to-consumer (D2C) products and services continues to grow, being a B2B focussed brand, UNOX India expects the government’s support to strengthen the D2C Indian ecosystem and to expand the business. These expectations might include investment in e-commerce infrastructure: As e-commerce expands, businesses anticipate the government’s investment in infrastructure that will support online firms and enhance the nation’s overall e-commerce ecosystem.”
Adding onto the same, he said, “More funding for digitization: As the D2C model heavily relies on digital channels for client acquisition and sales, more funding for digitization can be provided to develop businesses’ digital capabilities and expand their customer base in various zones. Put the customer first: Since D2C businesses deal directly with customers, we expect more protections for their rights. Hence, supporting the Direct-to-Consumer (D2C) business model needs to be a major thought as the sector is now geared up to witness further traction through the upcoming budget.”