In recent years, structural reforms initiated by the Government have laid the foundation for long term economic growth. The Union Budget 2023 will determine the roadmap for our country in the rapidly changing global scenario.
India’s favourable demographics comprising a growing share of the working population and rising aspirations of the middle-class has brought it on the cusp of transformation. With the budget 2023-24 fast approaching, key industries have come out with their wishlist from the government to help streamline businesses and accelerate growth to be able to contribute to the economy.
Indian Direct Selling Industry is one industry that has shown a consistent growth, reaching over USD 2 billion last year. It has grown at a CAGR of 15.7 per cent over the past four years despite the effects of the pandemic. The industry has expectations from the Union Budget 2023 in the form of breakthrough reforms, policy intervention, and focus on youth and entrepreneurship, which will enable it to rank among Global Top 5 markets in coming years.
According to Gautam Bali, Managing Director, Vestige Marketing Pvt. Ltd, “The Direct Selling industry appreciates the initiatives undertaken by our government in prioritizing infrastructure development, which will facilitate growth of Trade and Commerce in our country. We expect this budget to infuse structural reforms that will give entrepreneurial leverage to the nation’s youth.
“The added focus on agricultural reforms can also help influence the massive potential in rural India that can be the engine of our immediate economic growth. Alongside, a social security scheme offered to gig workers would be a welcomed move since their contributions are crucial in giving our economy a boost. We believe this will help the Indian direct selling Industry become among the top 5 markets in the coming years. We are optimistic that the Union Budget 2023 will provide a roadmap for turning our nation into a 10 trillion-dollar economy by 2032.”
India aims to be a $30 trillion inclusive and sustainable economy by India@100, which will help create resources for the government to fund development programmes and social security.
According to NITI Aayog, India needs to funnel approximately 13 per cent of its GDP into social causesthe current average is about 7 per cent to achieve its United Nations (UN) Sustainable Development Goals (SDG) commitments by 2030. Philanthropy can play a large role in accelerating economic growth that is both inclusive and sustainable.
“Philanthropy can help unlock India’s economic potential and serve a strategic purpose in accelerating socio-economic transformation over the next decade. Corporate social responsibility, private philanthropy (UHNIs and HNIs), and retail giving cumulatively contribute about 84 per cent of the total private philanthropic capital in India. While CSR is driven by a regulatory mandate and retail donations enjoy a limited tax exemption (Section 80G), a lot more needs to be done to boost private philanthropy. We hope that the upcoming Union Budget facilitates ‘ease of giving’ through suitable tax policy changes,” says, Radhika Jain, Director and Philanthropy Advisor, Accelerate Indian Philanthropy.
The hospitality industry, as it treads on the path of recovery post the pandemic, is aiming at a good start and bookings and anticipating a positive Budget for 2023-2024 to fast-track the growth momentum of the industry. “These are recognising tourism’s export status, granting infrastructure status, having a robust forex earnings incentives scheme, creating a domestic travel tax credit policy, putting tourism in concurrent list, setting up a natural & cultural heritage restoration fund, developing a national seamless tourist transportation policy, enhancing the corpus for global tourism branding, creating an underwriting fund for travel agents & tour operators & abolishing TCS,” says Aashish Gupta, Consulting CEO FAITH.
According to a recent survey conducted by Deloitte, at least 60 per cent of India Inc is confident that Budget 2023-24 will help fuel economic growth across sectors and industries, amidst a potential global economic slowdown and geopolitical instability. As the industry waits for the budget with bated breath, this positive sentiment will continue to help the country in deflecting the waves of uncertainty in near future.