How Budget 2023 could accelerate India’s transition to a greener economy (2/3)
– Mission Life: In 2022, Prime Minister Narendra Modi launched Mission LiFE (Lifestyle for the Environment). LiFE is expected to be a big priority in the coming year too, with the government focusing on how to roll out this mission in the next two years or so. To this end, specific outlays for different ministries could be announced to ensure effective on-ground implementation.
– Electric vehicles: Another area that will be in focus is clean mobility, particularly electric vehicles (EV). While there needs to be a policy push to create an efficient indigenous EV industry, the Union Budget may drive adoption by offering incentives such as faster tax depreciation for electric vehicles and charging infrastructure.
– Green hydrogen: To this end, climate financing and mobilising more resources by increasing allocation in the PLI schemes for boosting the domestic manufacturing of green hydrogen and sustainable solutions could be announced.
How Budget 2023 could accelerate India’s transition to a greener economy (1/3)
At COP27 in 2022, India reinforced its earlier commitments to support the target of 500 GW from non-fossil-fuel sources by 2030. To this end, expectations and hopes from the Union Budget 2023 are aplenty for a strong focus on green energy, and a greater thrust on climate action and sustainability. Expected are:
– Expansion of PLI schemes: The upcoming budget could see the announcement of PLI schemes that turn India into a green energy hub for domestic adoption and exports. Experts expect PLIs in advanced chemistry cell battery storage and for manufacturing of electrolysers.
– Carbon market: With climate change top of mind, countries and businesses the world over are setting up a roadmap to achieve their net-zero goals. An announcement on a national carbon market is expected this time around, which could facilitate India’s transition to a more energy-efficient economy with reduced emissions.
– Renewable energy: The upcoming budget is likely to focus on strengthening the institutions, frameworks, and financial incentives on meeting overall RE targets. As per the CareEdge report, Budget 2023 will include: “a push towards investments in storage technology, green hydrogen and pumped hydro to enable scaling up of RE capacity.”
Union Budget 2023: The market mayhem last week
The market succumbed to major selling pressure on January 27, with the benchmark indices falling nearly 2 percent despite a positive trend in global peers, as participants turned cautious ahead of key events next week – Union Budget 2023 and the US Federal Reserve meeting.
Bears took a strong lead for a second consecutive session, which resulted in a loss of Rs 11.75 lakh crore of wealth during 2 sessions, as the BSE market capitalisation fell from Rs 280.39 lakh crore, to 268.64 lakh crore as of 14:46 hours IST.
At the same time, the BSE Sensex plunged 1.93 percent, or 1,160 points, to 59,045, while the Nifty50 tanked 2.1 percent, or 375 points, to 17,517.
The broader markets were also caught in the bear trap with the BSE Midcap and Smallcap indices declining 1.5 percent and 2.5 percent, respectively as breadth was largely in the favour of sellers. Nearly 5 shares declined for every share rising on the BSE.
All sectors, barring Auto, participated in the correction with Energy, Utilities, Oil & Gas, and Power indices being the major losers, falling 6-7 percent. Bank, Capital Goods and Commodities were down between 2 percent and 3 percent.
Most experts feel this is a general trait of the market wherein it drastically corrects before the Budget, followed by a sharp recovery post Budget. Hence, we need to closely watch the market mood going ahead.
Pre-Budget bloodbath sees wipe out of Rs 12 lakh crore investor wealth
The market succumbed to major selling pressure on January 27, with the benchmark indices falling nearly 2 percent despite a positive trend in global peers, as participants turned cautious ahead of key events next week – Union Budget 2023 and the US Federal Reserve meeting. Bears took a strong lead for a second consecutive session, which resulted in a loss of Rs 11.75 lakh crore of wealth during 2 sessions, as the BSE market capitalisation fell from Rs 280.39 lakh crore, to 268.64 lakh crore as of 14:46 hours IST.
Budget 2023: US venture capitalists hope India’s Budget supports growth, strengthens start-up ecosystem
US venture capital firms investing in India are expecting the Union Budget 2023 to support the growth and development of the start-up ecosystem in the country, according to a top investor.
Ahead of the scheduled Budget, venture capitalist community in the US is very excited given the large number of unicorns emerging out of India in recent years.
According to Arun Kumar, managing partner of Celesta Capital, the venture capitalists want to capitalise on Indian talent and invest in them. Kumar served as assistant secretary of Commerce for Global Markets and director general of the US and Foreign Commercial Service (USFCS) during the Obama Administration.
“We are eager to see in the Budget, the government’s continued commitment to fostering a business-friendly environment that encourages foreign investment and supports the growth of new and emerging companies, including in the deep-tech space. The geopolitical scenario and the pandemic induced the need to diversify supply chain sources and present India with an opportunity to enhance its participation as a trusted node in global value chains,” he said.
LIVE: Good morning and welcome to Moneycontrol’s LIVE coverage ahead of the Union Budget 2023 scheduled on February 1. Stay tuned to find out all that the sectors expect from Finance Minister Nirmala Sitharaman’s ‘bahi khata’
