Reflections on Budget 2023: Managing Director Kevin McCole
The priorities and initiatives announced in this Budget shows the Indian government’s commitment to growth and driving private investment. UK businesses are aligned with this vision. The effective implementation of these plans will support the substantial UK investment already present in the country and help drive further inflows. With great economic and political uncertainty in many parts of the world, this Budget will deliver economic expansion and stability in India in the short, medium and long term.
The Budget sets out meaningful ease of doing business reforms, including on tax simplification. There is a thrust on energy transition, on providing young people with the skills of the future, and a significant capital investment in transport infrastructure. All important now and for the future.
And, importantly, the Budget reduces customs duties across a range of products. This, I think, supports the argument that in a world of integrated supply chains, for India to be a global export hub, it also has to foster free and open trade allowing access to high-quality, cost-effective imports. Lower tariffs, mean lower costs for manufacturers and more choice for Indian consumers. This will make India even more attractive to producers and investors looking to expand beyond China.
As the India-UK FTA negotiations advance, it is hoped that there will be tariff reductions, further simplification of customs procedures and standards alignment that will grow trade. We also hope that the FTA will support deeper collaboration, trade and investment in services. And, given the depth of the bilateral investment relationship, we want to see a strong Investment Chapter.