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With the announcement of Union Budget 2023, there is a lot to be excited about - from CapEx boost towards infrastructure development and support for youth empowerment to tax reforms and clean planet programmes. You may also note that with this budget announcement, various sectors are likely to benefit.

With various initiatives such as the replacement of old government vehicles with new ones and increased funding towards Indian railways and healthcare projects; the industries covered in this article are underlined to grow over the next few years.

If you want to know more sectors that are getting impacted by this year’s budget, check out Angel One’s YouTube Channel where experts decode the Union Budget 2023 in their series #BudgetWithAngel

Top 5 Sectors to Focus Post Union Budget 2023

1. Automobiles and Auto Ancillaries

This year’s budget raised the customs duty on imported vehicles as a step to promote domestic automobile industry. This move aligns with the government's commitment to promoting the ‘Vocal for Local’ initiative.

Moreover, the finance minister's proposal to replace outdated government vehicles with eco-friendly vehicles will not only help combat pollution but also boost domestic EV manufacturers.

2. Healthcare and Pharma

The government has significantly increased funding for the pharmaceutical industry, from Rs.100 Crores to a staggering Rs.1,250 Crores. To foster collaboration and innovation, select ICMR Labs will be opened up for research by both public and private medical college faculty and private sector R&D teams.

Additionally, the government is incentivizing the healthcare industry to invest in R&D as well.

3. Railways

The government has revealed a record-breaking capital outlay of Rs.2.4 Lakh Crore, a massive 9-fold increase from what was budgeted in FY 2013-14.

As a crucial component of the National Logistics Policy and PM GatiShakti scheme, this will likely bring tremendous benefits to companies operating in the railway sector. Particularly those involved in engineering, procurement and construction, wagon manufacturing, signalling, communication and bearings.

4. Banking and Finance

Under the credit guarantee scheme, the MSMEs will have access to an additional Rs.2 Lakh Crores in collateral-free loans. The government has committed Rs.9,000 Crores towards this initiative, to boost the lending sector's support for MSMEs.

In addition, the government is setting up the National Financial Information Registry, a centralised platform for financial information and data. This move will streamline the flow of credit, promote financial inclusion, and ensure stability in the financial sector.

5. Domestic Tourism

The government plans to develop 50 destinations in India for tourism. Tourists will have access to all essential travel information through a user-friendly mobile application, elevating their overall experience.

A new programme - Swadesh Darshan Scheme - will be launched to integrate and develop theme-based tourist circuits. Further, the government will enhance sector-specific skills and promote entrepreneurship to align with the objective of the "Dekho Apna Desh" initiative.

Conclusion

The Budget 2023 presents numerous opportunities for growth in various sectors. The government's strategic approach in the top 5 sectors identified in this article is set to bring about a positive shift in their growth.

For a comprehensive understanding of how Budget 2023 will shape the future of these sectors, be sure to check out the Decoding Budget 2023 video on Angel One’s YouTube channel.

Don’t forget to subscribe to their YouTube channel to easily understand #BudgetWithAngel.

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