Budget 2023 - Aims At Inclusive Growth: Prabhudas Lilladher

Prabhudas Lilladher Report

FY23-24 budget has carried forward Government focus on-

1. bottom end of pyramid with free food grains and enhanced allocations for development of tribal and backward sections and regions,

2. taxation relief to middle class under new regime,

3. enhancing Agri credit and farm level subsidies,

4. focus on green energy, energy transition etc and

5. heightened capex spend with Rs 13.4 trillion capex.

Sticking to fiscal deficit target in FY23 in environment of high inflation, global geopolitical crisis and enhanced outlay on public subsidies is positive.

We believe that the budget is targeting inclusive growth with focus on increasing consumption through benefits to middle class and deprived sections and impetus to industry to spur investment for domestic manufacturing and infrastructure development.

We believe it is a highly pragmatic and growth oriented budget which will help India remain amongst fastest growing economies globally. We remain constructive on markets, although near term volatility remains high given that India has been amongst best performing markets last year and remain relatively expensive than many other competing markets.

Inflation seems to have peaked out and outlook on rural demand should improve over coming couple of quarters.

India is well placed given more inward looking economy with large population and emerging middle class, significantly lower inflation than most countries, surplus domestic food grain production,

We remain overweight on banks, auto and IT services while we are underweight on consumer, non-banking financial company and cement.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.