Budget had a heavy focus on infrastructure and is positive for the capital goods industry and banking industry, specifically the demand for credit. Banks will also benefit from the ECLGS scheme. The capex push is positive for overall growth, the government has crucially prioritised capex as a growth driver.

Digital ecosystem

It is a positive step to see that this Budget will take steps to regulate virtual currency. India would be one of the world’s largest economies to introduce a central bank digital currency (CBDC), we will be following in the footsteps of China which is testing a digital yuan.

How this will be implemented will determine if establishing a CBDC will result in less expensive currency management and a boost to the economy as a whole

While the Budget is pushing forward with a digital rupee, a tougher stance on cryptocurrencies like bitcoin and a step towards the regulation of the sector is a positive step.

Start-up sector and innovation

The Budget has provided a significant impetus to the start-up and digital ecosystem that will not only lead to innovation but also growth in the job sector. This government did create an ecosystem that created 46 unicorns and it is good to see a renewed intention to continue the support in this sector.

Tax incentives for start-ups incorporated till March 31, 2023 are an encouraging step for potential as well as entrepreneurs to ensure an increase in cash flow.

MSMEs getting a boost with interlinked portals, the blended capital fund will create a culture of ease of doing business in the country that will in the future make India a preferable place for entrepreneurs.

Artificial intelligence, geospatial systems and drones, semiconductor and their ecosystem, space economy, genomics and pharmaceuticals, green energy, and clean mobility systems have immense potential to assist sustainable development at scale and modernise the country.

Additionally, as an investor in the start-up community, the reduction of the long-term capital gains is a positive step that would impact not only start-ups but investors in startups.

Financial markets

The government’s focus to develop the GIFT City is a positive step. This will bolster foreign investment.

From a market, investor or trader standpoint nothing has been introduced in this Budget of significant impact..

International cues have been positive over the last two days and we seem to be following them for now.

It’s overall a good budget, but there were a few updates we were looking for - income tax slabs, STT, dividend distribution tax, etc. An update on that would’ve made it even better.

(Nikhil Kamath is the co-founder of True Beacon andZerodha)

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