Budget 2023 | Reactions from Food and Beverage Industry to FM Sitharaman’s announcements
Budget 2023 | It was a rollercoaster ride for the Food and Beverage industry. Industry was eagerly waiting for the Budget Allocations. Therefore, here’s how the Food and Beverage sector reacted to the announcements made
Budget 2023 | It was a rollercoaster ride for the Food and Beverage industry. Industry was eagerly waiting for the Budget Allocations. Therefore, here’s how the Food and Beverage sector reacted to the announcements made by the Finance Minister.
Managing Director, Greendot Health Foods Pvt. Ltd.
“It is a very promising and encouraging budget that ensures to be a stepping stone for a strong economy. India is on the path to become a developed economy from a developing economy. This budget ensures that we would grow at a steady rate of 6.5% to 7% which is the fastest in the world.
The reduction in import duty will offer relief to import and export companies and boost domestic manufacturing.
The new tax regime which has been curated to benefit the all class, It would leave more disposable money in the wallet which would boost spending and overall GDP.
The initiative of an Agriculture Fund to be set up will boost the agri related Industries, Investment in Agri Startups would help to bring fresh ideas and innovation in the agri space. Renewed focus on Millets would make India a global hub for millets which is catching up globally.
Infra space has been allotted an outlay of 10 lakh crores would ensure that we have an infrastructure at par with the global peers which would attract a lot of International Capital.
Overall it’s a very balanced budget.”
“I do personally believe that the tourism sector holds huge opportunities for jobs and entrepreneurship and measures taken to push domestic and international tourism will definitely help in the growth of the hospitality industry. There are some tangible positives of tax relief measures for the middle class and that signals that the government is cognizant of their challenges.
The government has done fairly well with controlling inflation so far and they seem determined to continue with the same. In the short term, while the budget is not impacting the F&B sector greatly, I am glad to see that it has laid the road map for India’s green growth for a cleaner future and uplift the youth of the country through upskilling and development programs.”
Managing Director, Nilon’s
The 2023-24 Union Budget appears to be well-balanced and forward-thinking. The Finance Minister has successfully managed to increase capital expenditure by 33% while lowering the fiscal deficit from 6.4% to 5.9%. This action will further improve the stability of the Indian economy. The investment in Capital Expenditure will enhance productivity in the long run and reduce inflation.
The food processing industry plays a crucial role in enhancing agricultural efficiency and generating income. The emphasis on promoting millet cultivation, consumption, and exports, combined with increased investment in fisheries and support for natural farming, is beneficial for crop diversification, sustainability, and nutritional improvement.
As a consumer brand, we are happy to welcome the much-needed revision in the tax slab. The revised tax slab under the new regime is a positive change as it allows more money to be in the hands of people, which can boost the economy and increase consumption in the FMCG sector.
We also anticipate other policies and reforms that will enhance the industry, such as tax incentives, streamlined clearance processes, and simplification of the GST for raw materials. All in all, this has been an inclusive budget
Ms Sejal Purohit,
Founder, Seven Spring- Premium Tea Startup,
“The Indian government this year has presented a growth-oriented budget with a special focus on boosting the manufacturing sector to create massive employment opportunities and to maintain India’s status as the world’s fastest-growing economy even after the global crisis due to the pandemic.
The concessional corporate tax for newly incorporated manufacturing companies is a positive move towards promoting the “Make in India” initiative, as this will encourage new manufacturing industries as well as increase private investment in this industry.
Apart from that, the funds allocated to the Green industry are also positive for the startups who are trying to bring new technology and products to this industry to bring about a revolution as well as contribute to the whole economy.”
Co- Founder at GOOD FLIPPIN’ BURGERS®
“It’s very good news for startups that Government has extended the tax holidays by one year, i.e, till March 2024. We were hoping the government would also increase the total turnover by Rs 50 cr from the earlier 25 cr. This would have been a booster dose for startups who were incorporated after 2017 and faced the tough time.”
Co-Founder and Chief Marketing Officer, Keventers
“As the growth trajectory of the FMCG industry is closely linked with the trends in consumption demand, it is heartening to see relief in the tax and increased personal income taxes rebate from 5 lakhs to 7 lakhs. This would provide a positive thrust to personal consumption and increased sales. We are happy to note that the economy’s recovery from the pandemic is complete and India is on the right track. Overall, a growth oriented and welcoming budget”
Union budget 2023 is out, retail industry was expecting few direct SOPs which were a complete miss from the budget, specially around Input tax credit. Keeping a positive view I see measures for bringing more cash flows in hands of individuals through relaxed tax sops, this will certainly have a direct bearing on their spends and we see this as a small window of opportunity which can benefit the retail sector with increased spending.
The budget hits all the right notes for Agritech, Foodtech and the overall startup ecosystem in India.The focus on development of vital infrastructure like railway and highways would help improve the logistics requirements of the Agri and Industrial sector. The particular focus on Green growth as well as on Millets is welcome. India is the largest producer of millets in the world and this particular focus on millets will help both domestic as well exports of millets and value added millet products.
Co-founder of Moonshine Meadery
“A growing culture of startups and a burgeoning middle class have played a significant role in the economy growing to the 5th largest over the last 9 years.
The budget has some interesting takeaways, which will only further entrepreneurship, employment, and so will fuel further economic growth.
The most notable are – Credit Guarantee for MSMEs which will allow collateral free credit. While it is still uncertain if this is applicable to the wine & mead industry, I see this as an important fillip to the small scale wine industries, which are dependent on agricultural output.
Another takeaway is the DBT under the national apprenticeship scheme. As an organization who hires extensively from peri-urban areas, we see this scheme adding tremendous value to the employment pool by allowing brands such as ours to tap into an existing pool of already trained individuals.”
Founder at Foodism
“With the government introducing new policies and incentives, the hospitality industry is likely to see an increase in investments and job creation. The policies include initiatives to promote tourism in India, which will help boost the sector’s growth post-coronavirus pandemic. Additionally, the measures to support small businesses could provide much-needed relief for those struggling with the pandemic’s economic effects. These changes should create a more competitive environment for hospitality companies and help them stay competitive in the future.”
MD of Monika Alcobev
“The Union Budget 2023 was a very business-friendly one. Several initiatives were announced to enhance the Ease of Doing business by reducing compliances and decriminalizing legal provisions which will boost business growth. More clarity on what these are would be appreciated for sure.
The various initiatives, including revamping the credit line, announced to support MSMEs and startups are very encouraging for young entrepreneurs.
Many of the announcements (including the higher rebate on income tax) will help create employment, and help train people for jobs in the future. This is a critical aspect in ensuring business stability, particularly given expected market conditions.
Tourism was also one of the key focus areas of the budget. The new-age initiatives like an app for tourists, Dekho Apna Desh, Swadesh Darshan initiative, etc., will promote more participation from the younger generations, and will subsequently boost the growth of associated F&B brands”