Thread by @ICICI_Direct

Top highlights from the Budget Speech

A thread🧵👇 ##BudgetKiBaatein #ICICIDirect

The government will provide 5 kg grains for 81 crore people free of cost.

This will result into food subsidy bill of INR 2 Lakh Crore for the next 1 year #BudgetKiBaatein #ICICIDirect

Indian Budget has set 7 priorities – Saptarishi which includes

1. Inclusive development
2. Infrastructure
3. Unleashing Potential
4. Green Growth
5. Youth Power
6. Financial Sector

#BudgetKiBaatein #ICICIDirect

Capital Investment Outlay at ₹10 lakh crore for FY24E, up 33% YoY

This is a positive development for domestic commercial vehicle space and more so for Medium and Heavy Commercial Vehicle (M&HCV) domain

#BudgetKiBaatein #ICICIDirect

Agriculture accelerated fund to promote Agri start-ups in rural India to improve
🔶 Farm productivity and
🔶 Farmers profitability

Measures to boost farm income in Union Budget 2023-24 is positive for farm mechanisation space

#BudgetKiBaatein #ICICIDirect

Railways allocated a capex of ₹2.4 Lakh Cr

This will benefit EPC based companies and Product companies in:
🔶 Wagons,
🔶 Signalling,
🔶 Communication,
🔶 Bearings etc.

#BudgetKiBaatein #ICICIDirect

6/

₹15,000 Cr allocated over three years under Schedule Tribe Mission towards:
🔶 Safe housing and
🔶 Infrastructure development towards Road

#BudgetKiBaatein #ICICIDirect

7/

PM Awas Yojana fund increased by 66% YoY

₹79,000 Cr allocated for FY24 to boost demand of cables and wires

#BudgetKiBaatein #ICICIDirect

8/

Farm Credit Limit for FY24 raised to ₹20 Lakh Cr, beneficial for Agrochem and Seed companies

#BudgetKiBaatein #ICICIDirect

9/

To enhance indigenous production for lab grown diamonds💠 and reduce import dependency,

Financial support to be provided to IITs for research and development

Positive for gems and Jewellery sector🟩

#BudgetKiBaatein #ICICIDirect

10/

👉 Investment of ₹10,000 Cr to set up Compressed natural gas (CBG) plants

👉 5% CBG would be mandated in due course

#BudgetKiBaatein #ICICIDirect

11/

Approval of 13 GW of Ladakh renewable projects involving a capex of ₹20,700 Cr will lead to strong order inflows for:

🔶 Transmission EPC companies,
🔶 Transformers companies and
🔶 Other ancillary sector

#BudgetKiBaatein #ICICIDirect

12/

Thrust on developing coastal shipping though PPP mode and viability gap funding would help drive Multi-Modal logistics further,

Thereby providing lower logistics costs option to end users

#BudgetKiBaatein #ICICIDirect

13/

👉100 labs for developing applications for 5G services to be set up

👉 To drive enterprise use case

👉 Positive for top telecos

#BudgetKiBaatein #ICICIDirect

14/

To enhance the Ease of Doing Business:

🔶 More than 39,000 compliances have been reduced and

🔶 3400+ legal proceedings have been decriminalised

🔶 PAN card to be used as a common business identifier

#BudgetKiBaatein #ICICIDirect

15/

🔶 PM Pranam Scheme will promote balanced use of fertilizers reducing fertilizer subsidy bill

🔶 This will encourage use of organic farming and micro fertilizer

🔶 1 cr farmers will be facilitate to adopt natural farming over the next 3 years

#BudgetKiBaatein #ICICIDirect

16/

👉 Approval of ₹35,000 Cr for priority investment towards energy transition by MoPNG

👉 In sync with Green projects announced by top private Oil and Gas player and OMCs

#BudgetKiBaatein #ICICIDirect

17/

👉 Credit guarantee scheme for MSME extended with infusion of ₹9,000 Cr.

👉 Positive for mid-sized banks and NBFCs focussed on MSME loans

#BudgetKiBaatein #ICICIDirect

18/

👉 Government has reduced Custom Duty on Basic Acid Base Fluorspar from 5% to 2.5%

👉 Beneficial for fluorine chemistry players as fluorspar is raw material for many fluorine products

#BudgetKiBaatein #ICICIDirect

19/

Relief on customs duty on import of mobile components like:
🔶 Cameras,
🔶 Batteries, etc.

And concession on lithium-ion batteries for one more year

#BudgetKiBaatein #ICICIDirect

20/

👉 Reduction on customs duty on open cells used in production of televisions to 2.5%

👉 This is likely to drive the demand for televisions

👉 This is likely to benefit contract manufacturers

#BudgetKiBaatein #ICICIDirect

21/

👉 Excise duty component NCCD on cigarettes increased by 16%

👉 Negative for Tobacco companies

#BudgetKiBaatein #ICICIDirect

22/

Increase in tax exemption limit with consequent more disposable income is a positive development for domestic automobile space

To spur growth for:
🔶 Domestic passenger vehicle industry
🔶 It is also positive for premium motorcycle segment

#BudgetKiBaatein #ICICIDirect

23/

Rebate limit for Income tax raised to ₹7 Lakhs in the new tax regime

Lowest slab of tax raised from ₹0-2.5L to ₹0-3L

#BudgetKiBaatein #ICICIDirect

24/

Personal Tax Slab Rates Revised to:

₹0-3L: 0%
₹3-6L: 5%
₹6-9L: 10%
₹9-12L: 15%
₹12-15₹: 20%
Above ₹15L: 30%

#BudgetKiBaatein #ICICIDirect

25/

👉 Tax exemptions under the new tax regime will provide increased disposable income in the hand of salaried consumer

👉 This should help boost demand of small and large home appliances

#BudgetKiBaatein #ICICIDirect

26/

👉 Upper limit for exemption under section 54 / 54F capped at ₹10 Cr

👉 Section 54/54F provide relief on Capital Gains Tax on sale of capital assets

#BudgetKiBaatein #ICICIDirect

27/

Highest tax slab in the New Tax Regime reduced from 42.74% to 39%

Surcharge in the top slab reduced from 42% to 25%

Old tax regime rates continue

#BudgetKiBaatein #ICICIDirect

28/

👉 Fiscal Deficit for FY23 at 6.4% and
👉 Estimate of 5.9% for FY24

Inline with expectations in of market

#BudgetKiBaatein #ICICIDirect

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