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INDIA'S BUDGET FY 2023 HIGHLIGHTS

  • Writer: Yash Mehta
    Yash Mehta
  • Feb 1, 2022
  • 3 min read


Finance Minister of India had presented Financial Year 2023 budget on 1st Feb 2021. Post budget we had seen good rally in equity market. Nifty was up by almost 1.4% and NiftyBank was up by 1.4% at closing.


This year’s budget is mainly growth-oriented, and CAPEX related budget. As the capital expenditure is being stepped up to Rs 7.5 lakh crore. FY23 CAPEX is seen at 2.9% of GDP, and FY23 is effective CAPEX seen at Rs 10.7 lakh crore.


So some key highlights about the budget related to stock market are:


  • PM Gati Shakti:

PM Gati Shakti’s Masterplan will advance the economy by creating more jobs and opportunities for the youth. It will include the seven engines of economic change.

PM Gatishakti highway concept will be developed in the coming fiscal year. In 2022-23, the National Highway network will be enlarged by 25,000 kilometres.

In FY23, four contracts for multi-modal national parks will be granted.

The Gati Shakti programme will provide railways with a boost. In the next three years, 400 new Vande Bharat trains will be designed and built. The concept of “one station, one product” will be popularised to aid small enterprises. In the next three years, India hopes to build 100 cargo terminals.

  • For Indian Farmers:

In India, chemical-free natural farming will be promoted. Kisan drones will be pushed for crop evaluation, land record digitization, and insect pesticide spraying—also, MSP direct payments to wheat and paddy farmers totalling Rs 2.37 lakh crore.

  • Digital Ecosystem:

Digital ecosystem for upskilling and livelihood will take place this financial year.

This programme will use online training to educate, reskill, and upskill citizens. To locate appropriate jobs and possibilities, API-based skill credentials and payment layers are used.

  • Small Enterprises:

MSMEs like Udyam, e-shram, NCS & Aseem portals will be inter-linked and also their scope will be widened.

  • Electric Vehicles:

To strengthen the EV ecosystem, a battery-swapping regulation will be introduced along with interoperability standards.

  • PM Awas Yojna:

PM Awas Yojana has been allocated Rs 48, 000 crores.

  • Defence Sector:

Through the SPV model, private industry will be encouraged to collaborate with DRDO and other organizations to design and manufacture military platforms and equipment.

In 2022-23, 68% of the defence capital procurement budget will go to local industry (up from the 58% last fiscal). Defence R&D will be opened up for industry, start-ups and academia with 25% of the defined R&D budget.

  • Sovereign Green Bond:

The funds will be used for projects that will help reduce the economy’s carbon intensity. In FY23, the government will issue sovereign green bonds as part of its borrowing programme. Proceeds will fund public-sector projects.

  • Digital Rupee:

RBI plans to develop a digital rupee based on blockchain technology in 2023.

  • Cryptocurrency:

The gift of cryptocurrencies will be taxed at the receiver’s end.

  • Infrastructure:

Auctions for the 5G spectrum will be held in 2022. The production-linked strategy will include a design-led manufacturing scheme for 5G.

To award contracts for installing optical fibre in rural areas, with a completion date of 2025. In 2022/23, 480 billion rupees will be made aside for affordable housing.

An additional 195 billion rupees would be allocated for production-linked incentives for solar equipment manufacturers.

  • Duty Exemptions:

Over 350 exemptions will be phased out on agricultural products, chemicals, pharmaceuticals, and other items.

  • PLI (Production Linked Incentive scheme) in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.

  • Promoting Fintech and digital economy a focus area for this budget.

  • 75 digital banking systems in 75 districts by scheduled commercial banks.

  • Surcharge on Corporate tax pruned from 12% to 7% Surcharge on transfer of long-term capital gains tax capped at 15%

  • Customs duty on steel scrap extended by a year.


Sectors which can get benefits from the budget are:

  1. Electric Vehicles and Auto Ancillaries

  2. Infrastructure and Construction

  3. MSME

  4. Green and Clean Energy

  5. Defense Sector

  6. Agriculture

  7. Metals

  8. Fintech


In which stocks will you bet based on FY 2023 Budget? Let us know in the comment section?

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