Eye on growth: Pain points & what's on offer in Union Budget 2023

Earnings for India’s largest companies are significantly higher than they were before the pandemic. The growth in earnings has been coming down. Estimates suggest a slowdown in growth. 

New projects are up on a year-on-year basis. Companies have been reluctant to make major capital expenditure (capex) spends as they anticipate a challenging demand environment. Momentum in terms of continued private investment is yet to manifest in quarterly data.

What’s on offer

The government plans to continue efforts to improve ease of doing business. The budget mentioned 39,000 fewer compliance requirements and the decriminalisation of 3,400 legal provisions

The government has announced its intention to significantly increase capital investments. This is expected to help crowd-in private investments; helping with job creation and enhancing growth potential. The headline figure is significantly higher than it was before the Covid-19 pandemic took hold