Budget 2023: Decoding The Changes For M&A Sector

The Union Budget 2023-24, which is claimed to be the first budget in Amrit Kaal is growth-oriented and future-focused. Let's have a look at the probable changes for Marketing and Advertising Segment

On 01 February, Union Finance Minister Nirmala Sitharaman in Parliament presented the Union budget for the financial year (FY) 2023-24, calling it the first budget in Amrit Kaal which is also the final one for Modi regime before the general elections in 2024.

India's 2023 budget is growth-oriented, future-focused and packed with changes in all areas of the economy, building on the momentum of the previous year.

Regarding the media and entertainment sector, the government's goal to set up 100 labs focused on developing applications employing 5G services will result in the launch of seamless streaming and improved audio and video services for users. 

Pranav Jha, Director, AP Web World said, "This year's budget is progressive in many ways and more focused on green and digital. The "Make AI in India and Make AI work for India" vision is a supportive move to encourage Indian developers in the AI segment. It will help in the digital India movement and increase development in the AI ecosystem and help take a step closer to becoming a digital economy. India is one of the larger suppliers of talent in data and Al skills, and the budget brings laser-sharp focus to AI-led skill development by announcing the establishment of three centres of artificial intelligence."

Jha added that National Digital Library for children and adolescents will ensure higher adoption of digital learning across rural and remote areas. This year advertising and marketing industry is expected to grow by around 14 per cent amid the global recession, it is an opportunity for marketers to reach the deeper corner of India. Lab Grown Diamonds (LGD) in India is also a new initiative towards embracing new technology and reducing the burden on the environment.

The Pradhan Mantri Kaushal Vikas Yojana 4.0, which would assist young people in developing new-age skills such as coding, IoT, and soft skills among many other things, was also introduced in the budget. 

Adding to this, Satish Kataria, Founder, Fandora.app commented, "It seems that the government has not given heed to the potential demand of rationalising taxation on the virtual digital assets in this budget. I would like to reiterate that while Crypto Currencies as such could be speculative instruments, and hence demanding a higher taxation perspective - not all digital assets should be made part of this category. Again, while the government has issued its clarity of digital tokens underlying real-time assets - but then, Non-Fungible Tokens (NFTs) representing underlying art and content IP - are still dappling under the uncertain regime. I hope that the government realises that such NFTs and Web3 assets can help our content industry multifold - through adding additional monetisation layers to their existing content and enabling audiences to engage with their favourite creators in a more active, significant manner. I believe that the government should encourage Content based NFTs and bring them under the category of real asset-based tokens - thus providing essential incentivisation for Indian content creators to create even a better global impact."

The government has also declared it will establish three centres of excellence for artificial intelligence at prestigious educational institutions as part of its ongoing push for a "Digital India". The goal of these AI centres is to conduct research and produce useable AI applications in the areas of agriculture, health, and sustainable cities through partnerships between top educational institutions and pertinent industry leaders. 

Kartik Sharma - Group CEO, Omnicom Media Group India added, “At a time when all eyes are on India - poised to grow and thrive despite the looming economic slowdown, the standout for me is the strong thrust on Capex. The massive increase on this front shows the government's commitment to boosting infrastructure, industry-agnostic productivity, and the overall economy."

In keeping with its focus on inclusive growth, it is welcoming to see the budget checking the box for people from many walks of society and offering a strong and stable macroeconomic environment for all. There is positive relief on the personal tax front - making it a friendly budget for the common man. And the increase in the taxation slabs itself is a well-concerted attempt to move people to the new tax regime, expected to benefit millions of middle-class citizens in good time, Sharma added.

Giving the digital economy and transformation a boost remains a top priority, and new frontiers of innovation like artificial intelligence are being thrust front and centre to catalyse their application across a variety of industries, including learning and agriculture. The story of accelerated transformation is also visible in the field of education, where there is a stronger emphasis on educating the youth of the country in cutting-edge fields like AI, robotics, IoT, and others.

Sectors like green energy, handmade crafts, and even tourism - which have been severely hit over the previous few years of Covid - have been given their due in addition to a lot of growth-focused advantages for rural, agriculture, and education.

He concluded, “The overall budget is a progressive one to widen the country's horizons and further strengthen India’s economic order on the global stage.”

Advertisers will be focused on these new regulations as businesses plan their Capex and go forward with optimism. AdEx is therefore anticipated to have a successful year.

Chetan Asher, Co-founder & CEO, Tonic Worldwide has called the budget is focused on digital infrastructure is significant and is designed to keep the momentum going in the growth of our digital economy. Continued support for startups was much needed. Digital Library is a great initiative and an important step in boosting literacy.

However, Sitharaman delivered a balanced, Saptarishi budget that addressed all key issues and adopted an inclusive development strategy that is required for overall economic progress. Enhancing capital spending and improving tribal communities' social-economic reforms are constructive moves toward boosting the economy. Major adjustments in perspective and concentration towards a green economy and a young India are brought about by prioritising green growth and digital libraries for children and adolescents. A new breeze ushering in futuristic advances was the Union Budget 2023.