in-tax-Deloitte-Pre-budget-study-2023

Pre-Budget
Survey 2023
January 2023
Table of contents
Introduction
• Objective and Methodology
• Respondent Profile
Executive Summary
Survey Findings
• Economic Growth Outlook
• Effectiveness of Government’s
Digital Initiatives
• Industry Expectations from
Budget 2023
‐ Budget Sentiment
‐ Atmanirbhar Bharat and PLI
‐ Taxation Changes and
Expectations
© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 2

Introduction
• Objective of the study
• Respondent profile

Introduction
Respondent profile
Objective
• Understand the industry’s outlook on economic growth Industry
• Assess various digital initiatives by the government that the industry felt Automotive
helped make India become the front-runner for technology and 9% 10%
Banking, investment firms, and insurance
digitalization 11% 10% Capital goods
• Understand the industry’s perspective on the efficacy of government Chemicals
initiatives such as Atmanirbhar Bharat and Production Linked Incentive 10% 11% Electronics manufacturing
• Analyse industry’s expectations from the upcoming budget from the Energy (Oil, gas, and renewables)
standpoint of economic growth, Environmental, Social, and Governance 10% Food processing
10%
(ESG) adoption, trade agreements, and boosting exports Lifesciences and health care
10% 9% Telecom and technology
• Discuss industries’ outlook towards tax-related changes and strategies that
Textiles
can help to mitigate risks and support the industries in times of global N = 181
uncertainties
Methodology Turnover
• We conducted online surveys with senior leaders across different industries
and categories of companies.
• The survey contained 27 questions about the economic outlook, budget 28%
33%
projections, corporate and personal taxation changes, and views of Above INR 3,000 crore
effectiveness of various digital initiatives introduced during the past year. INR 250 crore–INR 3,000 crore
• We collated a total of 181 responses from 10 industries.
Less than INR 250 crore
The survey contained multiple select and single-select questions. The sum of
the percentages of options of multiple select questions will be above 100% 39%

Executive Summary

Deloitte − Point of View
Amidst a possible global economic slowdown and geo-political instability, the domestic economy has remained resilient and is well on its way to growth at
7% year over year. To support India’s US$5 trillion economy ambition, the industry holds high expectations from the Budget 2023-24 especially through tax
reforms and continued CAPEX with a focus on infrastructure.
Key announcements in Budget FY’23 expected to further strengthen the pace of growth:
Focus on Infrastructure (Physical and Digital) – The Government has been aggressive about infrastructure development in the last few years, and this
momentum is expected to continue. This will reap long-lasting benefits to the nation in the form of industrial growth, more employment, global supply chain
integration, and investment flows, thereby fueling economic growth and realising the US$5 trillion economy ambition. To support the infrastructure
development, measures such as encouraging private partnerships in large projects – including physical and digital - and incentivising private players or
mitigating risks for them would prove most useful.
In addition, the government’s strategic focus on improving research and innovation should move forward with more rigour, and attracting investments,
both domestic and international, will prove valuable.
Deloitte’s
expectations Boost export competitiveness – Given the encouragement received for the Atmanirbhar Bharat and PLI schemes, extending the scope of incentives and the
from the coverage of industries will help further boost exports as well aid in India’s share in the global value chain. In addition, various FTAs, executed or in progress,
by India are perceived as favourable to the industry. Various reforms to facilitate them in the form of easing compliance rules will further strengthen the
budget momentum.
• Support MSME growth – Integrating MSMEs into the global supply chain will be the way forward for the MSME sector in India. The accelerated credit
facility, incentivization, and technology integration will improve operational efficiencies and reduce costs. This will enhance their global competitiveness
and strengthen the sector, thereby, boosting the economy and providing maximum employment opportunities to low-income strata of the population.
Promote a green economy – To realise India’s commitment to achieving carbon neutrality by 2070, there must be targeted efforts in encouraging industries
to adopt ESG measures through incentives. Furthermore, developing capital markets, devising green instruments, and encouraging private investments will
help achieve this goal.
Make compliance easier – The tax structure (direct and indirect) needs to be simpler, stable, and unambiguous, leaving no room for interpretational
ambiguities. The changes, such as more clarification on the applicability of tax laws and provisions, such as tax deducted at source (TDS) are needed.
Furthermore, the digital tax structure needs further clarification, such as the implementation of the Equalisation Levy and Significant Economic Presence.

Executive summary
Despite global exigencies weighing on the economic environment there is optimism about India’s growth prospects. India is likely to grow at a
healthy pace and the policy announcement of the forthcoming budget will likely be supportive of growth while balancing concerns around
inflation and global risks. The following points express the expectations of the industry from the budget.
Positive economic growth outlook amongst the leaders

• Industry leaders are highly confident about India’s positive outlook and the economy is likely to achieve the 7% as projected by NSO’s early
estimates; growth will be attributable to rising domestic demand and the government’s push for capital expenditure
• The challenges posed by the global recession, currency fluctuations, along with domestic concerns such as inflation and skilled labour
shortages are a few of the downside risks and are seen as impediments to the industry’s growth
• Furthermore, the respondents are more confident of the budget being favourable, than last year, to their industry’s growth, as they expect
Industry the government to be proactive in cushioning the impact of economic risks that India may encounter this year.
Insights &
Taking digitisation to the next level
Expectations
• The government’s digitisation drive has been much appreciated by the industry, especially by the energy, BFSI, and automotive sectors
• Amongst all the digitised tax administration initiatives by the government, the GST portal and e-invoicing system have been recognised as the
most useful. The GST portal enables filing returns, refunds, and doubt resolution much more efficiently, and provides a one-stop solution.
More effective interventions may be required for the effectiveness of faceless assessments.
• Collaborating and encouraging investments from the private sector in completing digital projects, investing in emerging technologies, and
focusing on innovation will likely boost the digitisation efforts of the government and will consequently step-up India’s play in being a
technology powerhouse

Executive summary
Atmanirbhar Bharat
All respondents see Atmanirbhar Bharat as an effective program
• Most of them expect the initiative to focus more on making the supply chain resilience and facilitating easy compliance. Easy clearance to boost FDI in-
flows is also cited as another important measure to further strengthen the initiative
• An overwhelming number of respondents from energy, food processing, and electronics manufacturing expect Atmanirbhar Bharat to develop a strong
supply chain
Widening the scope of PLI

• The PLI scheme is perceived as beneficial for industry growth and encourages businesses to extend their manufacturing bases and enhance exports,
thereby increasing the sector’s production
• Majority of respondents expect extending these incentives for additional years to support them increase their production capacity. This expectation is
Industry highest amongst respondents from the food processing and telecom and technology industries.
Insights &
Expectations
Prime expectations from the Budget
• Additional tax incentives is one of the top expectation of the respondents from the budget that will spur growth in their industries. The view resonates
more strongly with BFSI, food processing, energy, and telecom respondents
• Accelerated credit support, and simplification of capital gains tax structure also feature amongst the top-three budget expectations
Boosting exports – Targeted sector–specific schemes and increased PLI coverage are considered as one of the most effective strategies for boosting
industrial exports. More respondents from the chemical and textile industry support this view
• FTAs are being perceived as significant in creating a market, improving their position in GVCs, and attracting foreign investments. Besides, better exchange
of technologies, information and best practices will improve export competitiveness and benefits sectors such as the BFSI and the automotive sectors.

Executive summary
Infrastructure financing – Raising funds from the bonds market at lower rates along with encouraging private participation are seen as the two
most preferred ways to raise funds for infrastructure development. Additionally, devising innovative structures such as credit guarantee
enhancement is also cited as an effective measure
Taxation policy reforms expectations

Tax-related improvements are the most desired budgetary measure since they are considered to accelerate industrial expansion
• Corporate taxation
‐ Making tax compliance easier is the most effective direct tax-related change, as suggested by the majority of respondents. The view is
strongly reflected by respondents from food processing, textiles, electronics, and capital goods, as compared to other sector respondents
‐ Besides easing tax compliance, a high number of respondents anticipate the government to reduce tax litigation
Industry ‐ On changing capital gains tax structure, rationalising tax rates across all assets; and indexation of gains are cited as extremely beneficial for
Insights & the industry
Expectations ‐ A call for reforming the GST tax structure is loud, also underlining the need for greater simplification of the tariff structure since many of
the believe this will result in fewer ambiguities, better compliance, and fewer legal disputes
o Under GST changes, ease of availing Input Tax Credit (ITC) and removal of GST credit restrictions are the top changes expected from the
budget
‐ Group taxation – Most respondents support group taxation and want it to be put into effect within a year
• Personal taxation
‐ Majority of respondents expect changes in personal taxation in the form of more tax exemptions and increasing deduction limits such as
the interest deduction for house loans, to be most effective for individuals, which would give the consumers more purchasing power and
thereby increase demand (consumer) in the market

2023 Vs. 2022
Outlook 2023 2022

Positive Positive
Economic growth outlook 62% 78%
Budget Outlook 73% 55%
Atmanirbhar Bharat 90% 91%
Efficacy of digital initiatives 57% 59%
Group taxation 75% 81%
Industry Expectation 2023 2022

Active collaboration with private sector in identifying Introducing and implementing more online platforms to
Digital initiatives
and accomplishing digital projects reduce delays and red-tape
Indian Government Bonds (IGBs) to raise finance and
Capital investment Innovative structures to get private capital
encourage Public Private Partnership (PPP)
Benefit of indirect taxes to enterprises in the form of Tax incentives for enterprises in priority sectors, such as
Taxation (for priority sector)
an exemption window on customs duty or GST food processing, MSMEs, and infrastructure
~80% of respondents feel that group taxation should 70% of respondents feel that group taxation should be
Group taxation
be implemented ‘now’ or ‘in the next year’ implemented ‘now’ or ‘in the next year’
Total responses 2023 : 181 Total responses 2022 : 163
Survey Findings
• Effectiveness of Government’s Digital Initiatives
• Industry Expectations from Budget 2023
‐ Taxation Changes and Expectations
Amidst global slowdown, over 60% of respondents conveyed confidence about India growing above 6.5%
The optimism was relatively more pronounced amongst sectors with better performance and outlook
driven by strong domestic demand
Overall growth outlook Outlook by sectors
2023 2022
Automotive 58% 42%
Above 6.5% Below 6.5% Positive Negative
Banking, investment firms, and
insurance 63% 37%
78%
Capital goods 70% 30%
62%
Chemicals 72% 28%
Electronics manufacturing 65% 35%

38%
Energy (Oil, gas, and
renewables) 67% 33%
4% Food processing 47% 53%

N = 181 N = 163
Lifesciences and health care 56% 44%
• A majority of the respondents expect India to grow over 6.5% in FY’23. This signals
optimism and confidence in India’s resilience and growth prospects
Telecom and technology 65% 35%
• Capital goods sector has performed well in recent quarters, and higher policy rates have
helped banks improve margins. Geopolitical uncertainties have created opportunities for
sectors, such as Chemicals, Electronics, and Energy while digitisation has helped the Textiles 53% 47%
technology sector. The buoyance is evident from their outlook for the economy, where a
large share of respondents from these sectors have expressed confidence in growth to Above 6.5% Below 6.5%
be high. However, respondents from food processing are divided on the outlook.
N = 181
Question: What is your outlook on India’s growth during 2023–24?
The economic growth is expected to be above 6.5% primarily driven by strong domestic demand and
government initiatives like Atmanirbhar Bharat and PLI
Pro-growth factors recognised by respondents Headwinds to the growth identified by respondents

• The economy is expected to grow above 6.5% driven by domestic demand • Upcoming global recession caused by the geopolitical turmoil post-COVID-
and rising household consumption, which will boost demand for goods 19, and soaring energy, food, and labor costs are a major deterrent to
and services across industries, especially the consumer durables economic growth. Due to this, GDP growth may fall below 6.5%
• The initiatives by the central government will stimulate the growth of • Skilled talent shortage will have a detrimental impact on the overall
MSMEs, manufacturing industries (like Atmanirbhar Bharat, PLI), exports progress of the services sector
(lower custom duties) and will likely play a vital role • Supply chain delays, poor infrastructure, and high indirect costs are likely
• Favourable monetary policies by RBI have moderated retail inflation and to impact business operations. This requires government intervention to
maintained significant forex reserves to deal with currency fluctuations develop a revitalised digitally powered procurement operating model
• Increased spending of government on infrastructure and research and • Spillovers from the Russia-Ukraine war and global monetary policy
innovation may yield promising results tightening will hurt the money supply in the economy
• The slowdown in the manufacturing economies is a sizable opportunity for • The fear of subsequent variants of COVID-19 might prompt consumers to
India to capitalise on supporting other economies enable savings and likely to reduce the private demand
• The digital transformation of the private sector, to become a center of • Slowdown in manufacturing industries driven by increased input costs
global offshoring is another opportunity area from international markets will stifle industrial growth
• Growth in industries like – • Other factors include:
‐ Healthcare –Surge in the output of medical equipment/vaccines ‐ Limited funds and private sector participation in research and
‐ Automobile - Increased demand for SUVs and EV manufacturing to innovation
attract investments ‐ Low spending, and unfavourable customer-centric policies
‐ Telecom – 5G roll-out and demand for fiber broadband network look
promising

Global exigencies overwhelmingly weigh on the economic outlook than domestic factors
Domestically, higher inflationary pressures concern businesses the most, while talent and logistics are
the other impediments
Impediments to growth • Respondents perceive uncertainties owing to the global economic
Global factors slowdown, exacerbated by the aggressive monetary tightening to
control inflation, and geopolitical conflicts to be the biggest
challenge that impacting India.
• While globally integrated sectors such as BFSI, automotive,
electronics, and chemicals, are more concerned about the global
54% 46% 43% 38% slowdown and currency fluctuations, geopolitical instabilities worry
commodity-based sectors such as energy, food, and materials.
• Domestic inflation, exacerbated by imported inflation, is adding to
cost pressures and evidently concerns 50% of the respondents
Global Currency Geo-political Supply chain responding to the survey.
slowdown fluctuations instability delays
• A depreciated currency makes imports expensive. which probably
explains a higher concern about inflation from the respondent s of
National factors the electronics sector (71%). Domestic-focused formulation, API
players, and imported medical instruments are likely to face cost
escalation and margin pressure concerning the life sciences and
healthcare sectors (60%)
• Despite being export-oriented, the textile sector is losing in the
50% 40% 23% global market as the currencies of competing countries registered a
stronger depreciation against the US dollar compared to INR.
• The supply chain issues are of lesser concern and only for a select
few sectors such as automotive, energy, and textile, suggesting an
Inflation Skills demand- Lagging physical easing of supply chain disruptions and improved mobility.
supply mismatch and social • Emerging and skilled-intensive sectors are the ones most concerned
infrastructure N = 181 about labour-skill mismatches.
This is a multiple select question; the sum of percentages will be above 100%
Question: What according to you can be the impediments to the growth of your industry?
Globally integrated sectors such as BFSI, automotive, electronics, and chemicals are
more concerned about the global slowdown
Measures Automotive Banking, Capital Chemicals Electronics Energy Food Lifesciences Telecom Textiles
investment goods manufacturing processing and health and
firms, and care technology
insurance
Global slowdown 68% 74% 25% 67% 65% 44% 35% 56% 50% 53%
Supply chain delays 53% 11% 25% 39% 41% 50% 47% 33% 25% 67%
Currency fluctuations 21% 32% 40% 39% 71% 50% 53% 56% 50% 60%
Geopolitical instability 47% 53% 55% 39% 24% 50% 65% 28% 45% 20%
Inflation 47% 63% 65% 61% 18% 44% 41% 50% 55% 53%
Skills demand-supply 37% 37% 40% 39% 53% 22% 35% 56% 55% 20%
mismatch
Lagging physical and 26% 26% 40% 6% 29% 28% 18% 11% 20% 20%
social infrastructure
Question: What according to you can be the impediments to the growth of your industry?

Survey Findings
The government’s digitisation drive has been appreciated by energy, BFSI, and automotive
More targeted efforts may be needed in digitising administrative processes for the textile and capital goods sectors
Has Digitisation been helpful? Sector-wise

Automotive 63% 37%
57% 37% 6% Banking, investment firms, and insurance 58% 42%
Capital goods 40% 45% 15%
Chemicals 56% 44%
Electronics manufacturing 65% 29% 6%
Energy (Oil, gas, and renewables) 61% 28% 11%
Food processing 53% 41% 6%
Lifesciences and health care 61% 39%
Telecom and technology 75% 20% 5%
Textiles 40% 47% 13%
Yes Somewhat No N = 181
• There has been a growing push by the government to digitise administrative services and improve governance
and ease of doing business.
• 57% of respondents across the board believe that the recent digitisation initiatives have been very beneficial,
while 37% believe it has been somewhat beneficial
Somewhat
Yes No • The government’s digitisation initiatives may require a targeted approach for the textile and capital goods
helpful
N = 181
sectors.
Question: Do you think that the government’s technology and digitisation drive (such as GST portal, compliance information portal for customs, Data Protection Bill, ONDC project, and GeM) has been helpful for your industry?

Digitisation initiatives such as the GST portal enabling filing returns, refunds, and doubt resolution and
e-invoicing have been most appreciated
Faceless assessments were the least voted initiative, which signals more effective interventions
Helpful digital tax initiatives
70% GST portal enabling filing returns, refunds, and doubt

resolution
67% E-invoicing system
Computer-based selection results in limited cases

65%
being picked up for assessment
62% E-way bill
CPC enabling e-Filing and e-Processing of tax returns

59%
and refunds
57% Input tax credit reconciliation
48% Faceless assessments N = 181
• Digitisation initiatives have proven to help file taxes and ease the governance process.
• The GST portal enabling filing returns, refunds, doubt resolution, and e-invoicing has been most appreciated by respondents across all sectors, followed by Computer-based
scrutiny selection resulting in limited cases picked up for assessment (use of data analysis).
• Respondents from the automotive, chemicals and life science and healthcare sectors have been most appreciative of the mentioned digitisation initiatives undertaken so far,
while the respondents from the textile sector have given a mixed response.
• None of the respondents found faceless assessment useful, which probably signals that the government measures may not have been effective in this area.
Question: Which have been the most helpful for your industry?

Respondents from the automotive, chemicals, and life science and healthcare sectors have been most
appreciative of the mentioned digitisation initiatives
Measures Automotive Banking, Capital Chemicals Electronics Energy Food Lifesciences Telecom and Textiles
investment goods manufacturing processing and health technology
firms, and care
insurance
GST Portal enables filing
returns, refunds, doubt 89% 79% 75% 67% 76% 61% 65% 72% 70% 40%
resolution
E-invoicing system 74% 68% 70% 67% 53% 56% 82% 67% 70% 60%
Computer based scrutiny
selection resulting in limited
84% 63% 65% 78% 59% 44% 47% 78% 60% 67%
cases picked up for assessment
(use of data analysis)
E-way bill 58% 47% 65% 56% 53% 61% 76% 67% 80% 60%
Centralized Processing Centre
(CPC) enabling e-Filing and e-
Processing of tax returns and 74% 68% 50% 61% 59% 56% 53% 72% 50% 47%
refunds
Input tax credit reconciliation 63% 68% 65% 67% 53% 44% 53% 50% 50% 60%
Faceless assessments 47% 53% 50% 39% 41% 44% 41% 50% 60% 47%
Question: Which have been the most helpful for your industry?

Respondents suggested active collaboration with the private sector and investment in
advanced technology
Driving technology and digitisation to the next level • As digital capabilities evolve, there must be a
consistent push to facilitate technology
transformation to its full potential
• However, amongst the various alternatives,
respondents could agree only on a few that could
56% 52% 42% 41%
drive digitisation to the next level. 56% of the
respondents believed that working actively with the
private sector to identify and accomplish digital
projects may advance efforts towards digitisation
Active collaboration More investments in Introducing and More focus on
with private sector in digital infrastructure implementing more research and • Amongst the respondents, the largest support for the
identifying and and technologies online platforms to innovation active collaboration from the private sector came
accomplishing digital such as AI, IoT, and reduce delays and from Lifesciences and healthcare (~72%) and
projects Big Data red tape Electronics manufacturing (~71%)
• The second most popular alternative was increasing
investment in digital infrastructures such as AI, IoT
and Big Data as highlighted by 52% of respondents
• Respondents from the Capital goods and textile
39% 35% 34% 1% sectors, who responded less favourably to the
digitisation efforts earlier were also the ones asking
for more online platforms that reduced delays and
Cloud deployment and Simplified digital Offering a conducive Others red tape. This further underscores the need for
implementation for taxation law work environment to targeted solutions for these two sectors.
enhanced digital privacy vendors/partner
and security companies
N = 181
Question: How, according to you, can the government further improve on this?

India can enhance its position as a technology powerhouse by focusing on innovation and
bringing in investments
There is a rising ask for bringing in MSMEs into the technology platform and provide them with credit facility
• 65% of the respondents expected an increased
innovation focus, together with private-sector
More focus on innovation and motivate private-sector participation in 65% engagement in R&D investments to enhance India’s
investment in R&D
position as a technological powerhouse.
• Lifesciences and health care (~78%), Telecom and
Attract more investments domestically and internationally 59% Technology (~75%), Automotive (~74%) and BFSI
(~74%) were the biggest supporter of innovation and
private sector participation.
Support MSMEs to integrate technology in their operations with • Since digitisation requires a lot of investment, 59% of
55%
effective credit facility respondents endorsed the idea that attracting both
foreign and domestic investors to ensure sustained
money inflows to boost digitalization
Strengthening the talent—skilling, reskilling of talent, and more 48% ‐ Respondents from Textiles (~73%), Energy (~72%),
public spending on education
and Capital goods (~70%), also believe the same
• 55% of respondents believed that supporting MSMEs
Tax laws for encouraging strategic sectors such as semiconductors, for technological integration and providing a platform
space, higher end of electronics
45% for effective credit facilities would aid this endeavour.
• This signals that there is a growing realization of the
importance of bringing MSME onto digital platforms,
A robust and refined data 26% which will help in building a strong and inclusive
protection bill
digital ecosystem.
Others 2%
N = 181
Question: How, according to you, can India become a technology powerhouse?

Survey Findings
Respondents seemed more confident about a supportive budget than last year, probably because they
expect the government to be proactive in cushioning the impact of risks highlighted earlier
More respondents from electronics, capital goods, and textile sectors are expecting supportive announcements
Sentiment regarding budget on industry revival Sector-wise sentiment
Automotive 37% 37% 26%

2023 1% 25% 43% 30%
Banking, investment firms, and
insurance 26% 42% 32%
1%
Capital goods 15% 50% 35%
2022 2% 20% 23% 48% 7% Chemicals 33% 45% 22%
Electronics manufacturing 6% 6% 29% 59%
1 - not at all positive 2 3 4 5 - very positive N = 181 Energy (Oil, gas, and renewables) 33% 44% 23%
Food processing 24% 41% 35%
Lifesciences and health care 39% 39% 22%

• 73% of the respondents are optimistic that the forthcoming budget would be
supportive of their sector's growth amidst the downside risks they face this year.
This is a sharp improvement over the previous year, where 55% indicated such
Telecom and technology 5% 25% 40% 30%
sentiments in 2022
Textiles 20% 67% 13%
• Amongst the sectors, Electronics manufacturing (88%), Capital goods (85%) and
Textiles (80%) are most positive and hopeful of the upcoming budget, followed by
1 - not at all positive 2 3 4 5 - very positive
food processing (76%) and BFSI (74%)
N = 181
Question: How positive are you about the upcoming budget helping your industry’s growth?

Tax incentives, credit support, and simplification of capital gains tax structure featured the most
amongst the top-three budget expectations
Although 37% of the responses had public capex featuring as the top-3 expected policies, raising finances through
disinvestments did not get as much attention
Budgetary steps for sector growth
Simplification of capital
49% Additional tax incentives 40% Accelerated credit support 38% gains tax structure
Incentivising private sector

37% Increasing public capex 35% participation
32% Rationalisation of taxes
Accelerated divestment
Increased spending on
30% research and innovation
29% programmes/asset 2% Others
monetisation programmes
• Amongst the top 3 expectations from the budget, additional tax incentives featured amongst 49% of the responses signalling the most needed impetus. Tax incentives are featured as the most
expected initiative amongst respondents from the BFSI, food processing, and energy sectors.
• Accelerated credit support was the other one amongst the top-3 expectation (40% of the respondents), with respondents in the Energy (56%), Telecom (50%) and Textile (53%) sectors voting it
high in their budget expectations.
• Demand for rationalization of taxes did not feature as top-3 for most respondents, while very few respondents voted for social and innovation spending.
• Surprisingly, the percentage of respondents prioritising increased public CAPEX in their expectations, did not match with that of the need to raise funds high. This could be because this year,
top-3 expectations were more sector-specific incentives given the economic headwinds ahead.
This is a multiple select question; the sum of percentages will not sum up to 100%
Question: What budgetary steps, according to you, can act as an impetus for your sector’s growth?
Targeted schemes and broader coverage of PLI, lower custom duties, and affordable credit featured the
most amongst the top three expectations to boost exports
Given the spur towards FTAs, a well-negotiated agreement featured as one of the three expectations amongst 43% of
the respondents
Budgetary steps for sector growth • 56% of the respondents mentioned targeted
sector-specific schemes and increased
coverage of PLI as the top-three expected
measure to drive exports
− 80% of the respondents from the textiles
sector and 72% from the chemicals
sectors advocated for enhancing the
coverage of PLI
56% 53% 50% 43% • Incentives around duties, credit, and taxes
Targeted schemes and Lower custom Availability of credit at Increase and extend were the other top-3 asks from the
coverage of PLI duties affordable rates tax incentives respondents to boost exports.
• 43% of the respondents voted FTAs as one of
the top three expectations
• Surprisingly, very few respondents
emphasized policies around infrastructure
and marketing support in their top 3
expectations. This could be because they
expected continued government spending
towards infrastructure, but they were not
43% 32% 22% 1% certain about sector-specific incentives to
More and well negotiated Improve port Support to marketing boost exports.
Others
free trade agreements infrastructure and efforts
shipping
N = 181
Question: What measures by the government can boost your industry’s exports?
An overwhelming majority of respondents perceived trade treaties to help create markets and enhance
their role in GVCs
Respondents expected treaties to enhance investment flows and the exchange of emerging technologies
Perception of trade treaties
Will create market for my product 80% 4% 16%
Will enhance role in global value chain 81% 8% 11%
Will increase the investment in-flows 69% 7% 24%
Will offer access to emerging technologies 61% 8% 31%
Will hamper the growth/ expansion of small/middle scale

41% 23% 36%
industries
Yes No Not sure N = 181
• India is aggressively pursuing free trade agreements, recently finalising those with Mauritius, the UAE and Australia after a gap of 10 years. Further, an agreement with the UK is
also on the way.
• Respondents are very optimistic about the role these treaties will play in creating a market, improving their position in GVCs, and attracting foreign investments. These treaties
will also help domestic firms get access to emerging technologies. All these will help in improving exports. Higher numbers of respondents from BFSI and automotive sector
hoped for better exchange of technologies
• Respondents were divided about whether trade treaties could possibly impact growth amongst MSMEs adversely
Question: How do you perceive this focus on trade treaties impacting your industry?
IGBs and PPP were voted as the most preferred ways to raise the funds for infrastructure
One of the untapped potentials of utilizing the National Pension System (NPS) and other long-term funds was also
recognized as measures to raise funds by almost half the respondents
Measures increase private investment in infrastructure
Indian Government Bonds (IGBs) to raise finance 60% • 60% of the respondents suggested raising
funds through Indian Government Bonds.
This proportion has increased by 12% from
Encourage PPP by working on aspects such as the previous year. Since the funding gap is a
dispute settlements, removing risks and 58% critical challenge, relying on low-interest
uncertainties for private players sovereign bonds is one of the affordable
options.
Innovative structures such as credit guarantee 54%
enhancement to bring in private capital • Private partnership has taken off only in a
few pockets of infrastructure financing. 58%
of the respondents felt PPP could be
Better utilisation of National Pension System
49% encouraged in meeting the funding gap
(NPS) and other long-term funds
significantly, by addressing issues that deter
private participation, including dispute
Securitisation of infrastructure assets settlements and removing risks and
43%
uncertainties.
• One possible way of addressing the finance
Impetus to investment vehicles such as bonds gap problem is a better utilization of NPS
33%
and other longer-term funds that have not
yet been tapped to their potential.
Others 1%
N = 181
What measures according to you can increase private investment in infrastructure?

Competitive import duties, incentivisation/subsidization, and reduced license fees were the key
expected measures during the budget to support manufacturing
Policies related to credit were the other asks amidst tightening monetary policies
Measures to support manufacturing • 60% of respondents expected import duties

to be competitive to help the country grab
opportunities in the international market
Extension of sunset date when major manufacturing economies are
Incentivisation or Easy credit flow
for commencing experiencing a slowdown
subsidisation
manufacturing
‐ This was closely followed by
incentivisation or subsidisation of
construction, plant, machinery, CLCSS for
technology upgradation, and
employment/skilling) as the next priority
60% 56% 48% steps to boost output
• 56% of leaders concur that additional
reductions in license costs might
significantly boost production capacity
58% 53% 26% • Access to easy finance may also contribute
to preserving the possibility of a downturn
in industrial companies
Making import duties

Reducing license fees Financing supply chain
competitive
Question: In the wake of opportunities created by the slowdown in major manufacturing economies, what, according to you, could be the most effective way to utilise this opportunity for your industry?

Tax incentives and subsidies can promote ESG adoption in the industries, highlighted
by majority (~64%) of the leaders
Expectations regarding ESG measures • With the government pledging to being

carbon neutral by 2070, it is crucial that the
Offering tax incentives and subsidies to promote green forthcoming budget must focus on
64% Environmental, Social, and Governance
economy
(ESG) concerns
• 64% of the leaders cited that provision of
Promote capital flow by developing capital markets 51% tax incentives and subsidies are needed to
foster a green economy
• More than half of the leaders suggest
Devise innovative green instruments for financing 48% increasing the capital flow by creation of
capital markets
‐ 73% of the textiles industry leaders
Incentivising private financing and PPP 48% concurred with this viewpoint
• Nearly half of the leaders agreed that having
green instruments for financing can further
Introducing carbon tax 46%
enhance the ESG adoption
• Majority of the leaders from Energy industry
Introducing emission trading mechanisms 42% trust that incentivising private financing and
purchasing power parity will boost the ESG
adoption
Any other 1%
N = 181
Question: What, according to you, can the budget offer to facilitate ESG adoption in your industry?

More respondents from automotive, lifesciences & healthcare and textile industry cite the need for
emission trading mechanisms.
firms, and care
insurance
Offering tax incentives and
subsidies to promote green 58% 68% 65% 67% 82% 61% 76% 50% 55% 53%
economy
Promote capital flow by
63% 47% 35% 56% 41% 56% 47% 50% 45% 73%
developing capital markets
Devise innovative green
42% 37% 45% 44% 65% 56% 59% 61% 35% 40%
instruments for financing
Incentivising private financing
37% 53% 65% 44% 24% 67% 53% 39% 55% 40%
and PPP
Introducing carbon tax 37% 53% 65% 50% 41% 22% 35% 50% 65% 40%
Introducing emission trading
63% 37% 25% 39% 47% 39% 24% 50% 45% 53%
mechanisms
N = 181
Question: What, according to you, can the budget offer to facilitate ESG adoption in your industry?

Survey Findings
Confidence in the effectiveness of policies under Atmanirbhar Bharat has not changed since last year
Respondents expected the initiative to primarily address supply chain resilience
Is Atmanirbhar Bharat effective? Expectations from Atmanirbhar Bharat

Develop strong supply
10% 9% chains 64%
Reduce administrative
2023 2022 inefficiencies and 53%
compliance burdens
90% 91% Easy clearance to promote

50%
FDI inflow
Yes No Yes No
N = 181 N = 163
Competitive import tariffs 44%
• Developing strong supply chains is expected to be the most important measure for
strengthening the Atmanirbhar Bharat Programme
‐ 82% of energy and 80% of electronics manufacturing respondents emphasise to Continued emphasis on
this digitisation to build a robust 44%
digital ecosystem
• More than half of the respondents said that streamlining administrative
procedures and easing compliance requirements will enrich the initiative R&D incentives
• Another step proposed by 50% of the leaders is easing clearances to boost FDI extension/weighted 39% Incentives for traders
selling to the
• Only a significant percentage of respondents from the Lifesciences and healthcare deduction
domestic market
sector expected extending the R&D incentives and initiating weighted deductions
on the R&D expenditure, as well as digitisation to be covered under the initiative. Others 6%
N = 163
Question: Do you feel Atmanirbhar Bharat is helping your sector at an operational level? If yes, how do you think Atmanirbhar Bharat can be further strengthened?
An overwhelming number of respondents from electronics manufacturing, energy, and food processing
sectors expected the Atmanirbhar Bharat initiative to develop a strong supply chain.
insurance
Yes % 95% 84% 90% 100% 88% 94% 82% 83% 100% 80%
Develop strong supply
61% 63% 44% 61% 80% 82% 79% 47% 55% 75%
chains
Reduce administrative
inefficiencies and 67% 25% 61% 67% 47% 41% 36% 60% 65% 50%
compliance burdens
Easy clearance to
56% 69% 61% 56% 40% 47% 64% 7% 45% 58%
promote FDI inflow
Competitive import
39% 56% 44% 28% 40% 59% 50% 33% 50% 42%
tariffs
Continued emphasis on
digitisation to build a 39% 44% 56% 39% 47% 35% 36% 60% 50% 33%
robust digital ecosystem
R&D incentives
extension/weighted 39% 38% 33% 33% 40% 29% 29% 80% 35% 33%
deduction
Question: Do you feel Atmanirbhar Bharat is helping your sector at an operational level? If yes, how do you think Atmanirbhar Bharat can be further strengthened?
70% of the respondents perceived the PLI scheme to be beneficial to their sector.
Close to 60% of the respondents were expecting an extension of the incentive to further years
Perception of the PLI scheme Expectations from the PLI scheme
Facilitating and increasing production capacity

by extending incentives to more years 59%
Increasing the ambit of the PLI scheme to other

sectors 54%
70% 25% 5% Encouraging investment from within and

outside India 49%
N = 181
Positive Neutral Negative
Choice of a strategic sector 49%
• Majority (~70%) of respondents highlighted that the various Production Linked

Incentives schemes have been beneficial for the growth of their sector Support to research and development 43%
• Further, 59% of the respondents advocated that extending these incentives for
additional years would facilitate and increase their production capacity
‐ 71% of food processing and 70% of telecom and technology respondents expected an Incentivising additional employment
generation 39%
extension
• A majority of the respondents across all sectors, except electronics manufacturing and • Incentives for export
energy, advised broadening the scope of PLI programmes to include other sectors. manufacturers
• Surprisingly, respondents did not expect the scheme to address skills and incentivise R&D
Others 7% • Export duty concessions for
under its purview MSMEs
• Incentives for supporting
industries
Question: How do you think the PLI scheme has benefited your industry? What more can be done in the PLI scheme to benefit your industry N = 181
The expectation to extend the PLI scheme was the highest amongst respondents from food processing
and telecommunications and technology
Measures Automotive Banking, Capital Chemicals Electronics Energy Food Lifescience Telecommu Textiles
investment goods manufacturing processing s and nications
firms, and health care and
insurance technology
Facilitating and increasing 47% 63% 50% 56% 65% 61% 71% 56% 70% 53%
production capacity by
extending incentives to more
years
Increasing the ambit of the 53% 53% 50% 56% 47% 39% 59% 67% 55% 60%
PLI scheme to other sectors
Encouraging investment from 37% 58% 50% 50% 71% 56% 35% 39% 45% 53%
within and outside India
Choice of a strategic sector 53% 53% 70% 50% 35% 61% 47% 39% 35% 47%
Support to research and 63% 26% 40% 44% 35% 44% 47% 61% 35% 27%
development
Incentivising additional 42% 47% 40% 33% 35% 22% 41% 33% 60% 33%
employment generation
Question: How do you think the PLI scheme has benefited your industry?
Survey Findings
Most respondents cite easing tax compliance to be the most effective direct tax-related change
60% respondents from Telecom and half of respondents from Energy and Lifesciences expect reduction in corporate tax
• Amidst global uncertainties and a looming global

Direct tax-related changes
economic slowdown, tax-related changes would
boost industry growth and are the most sought-after
measures from the budget
• Besides easing tax compliance, 45% of respondents 66% 45% 44% 43%
anticipate the government reducing tax litigation
• 44% expect to gain clarification of tax laws and
provisions such as TDS under section 194-O
Easing tax Reducing tax More clarification on applicability Further reductions
• Automotive leaders (53%) also wish to have clarity on
compliance litigation of tax laws and provisions, such in corporate
the implementation of the Equalisation Levy and
as TDS under Section 194-O taxation
Significant Economic Presence, addressed in the
budget
39% 33% 29%
Clarity on implementation Extension of the Transfer pricing

of Equalisation Levy (EQL) & sunset clause for
Significant Economic Section 194LC and N = 181
Presence (SEP) Section 194LD
Question: What could be the most effective changes in direct tax regulations for your industry?

Capital-intensive sectors such as Food Processing, Textiles, Electronics, Capital Goods hope for easier
tax compliance
insurance
Easing tax compliance 58% 63% 70% 56% 76% 78% 88% 50% 55% 67%
Reducing tax litigation 42% 21% 55% 61% 47% 39% 53% 50% 40% 47%
More clarification on the 47% 68% 30% 44% 41% 39% 35% 56% 45% 27%
applicability of tax laws and
provisions, such as TDS under
Section
1940
Further reductions in corporate 42% 42% 40% 39% 24% 50% 41% 50% 60% 40%
taxation
Clarity on implementation of EQL 53% 42% 35% 33% 35% 33% 24% 50% 35% 47%
and SEP
Extension of the sunset clause for 16% 47% 45% 44% 35% 28% 24% 22% 40% 20%
Section 194LC and Section 194LD
Transfer pricing 42% 16% 20% 22% 41% 33% 35% 17% 25% 47%
Question: What could be the most effective changes in direct tax regulations for your industry?

Majority of respondents feel rationalisation of tax rates across all assets and gains indexation would be
highly beneficial
• The industry is expecting the budget to simplify the

Capital gains tax structure changes
capital gains tax structure and remove ambiguities in
interpretation of tax thereby making its compliance
easier
• This becomes even more relevant as the economy is
Rationalisation of rates across all asset classes 54%
moving towards the digital era where new and
innovative forms of instruments are likely to enter
and fuel growth of the economy and especially start-
Gains should be indexed (Inflationary effects can be
up ecosystem
factored in)
54%
• The structural changes in the capita gains tax
becomes more imperative at present when the global
economy is slow, and COVID-19 threat is looming
• This step will spur investment and economic growth Removing ambiguity in interpretation of tax 48%
and will provide long-term relief to the taxpayers and
the tax administration
Rationalising multiple holding periods 44%
Others
N = 181
Question: What changes in the capital gains tax structure will be helpful for your industry?

With Energy being in the focus, 61% respondents from the sector hope for reduced
ambiguity in tax interpretation
investment goods manufacturing processing and health Technology
firms, and care
insurance
Rationalisation of rates 63% 58% 55% 67% 35% 44% 59% 39% 70% 40%
across all asset classes
Gains should be indexed 63% 53% 55% 44% 53% 61% 47% 56% 55% 47%
(Inflationary effects can be
factored in)
Removing ambiguity in 42% 53% 40% 39% 47% 61% 41% 61% 40% 53%
interpretation of tax
Rationalising multiple 32% 37% 50% 50% 65% 22% 53% 44% 35% 60%
holding periods
Question: What changes in the capital gains tax structure will be helpful for your industry?

Three-quarters of respondents support group taxation, with ~80% wanting it to be
implemented within a year
Moving to group taxation

Opportune time for movement
81%
75%
23%
After a minimum of 5 years

Yes
25% 55%
19% In the next year
Now
Yes No 22%
The opportune time for movement was asked only to those

2023 2022
respondents (136) who feel that India should move to group
taxation (“Yes” in previous question).
• 75% of the industry leaders (as compared to 81% in past year) cite that India should opt for Group taxation
• In the above cohort, 78% of leaders feel that group taxation should be implemented ‘now’ or ‘in the next year’
Question: Should India move to a “group taxation” concept, wherein taxpayers can file a single group tax return, similar to group consolidations for financial statements, to promote better private sector participation and speedier
infrastructure development?
N = 181
76% respondents believe that changes in GST tax structure would be most impactful for their industries
Large majority of respondents from Energy, Telecom, and Lifesciences strongly support the above perspective
• Close to 70% of respondents also highlighted the Indirect tax-related changes

need for further simplification of tariff structure as
simplification will lead to fewer interpretational
issues, better compliance, and less litigation GST tax structure changes 76%
• Simplification of the tariff structure for import and
exports and easy compliance rules for FTA
agreements will make compliance easier, reducing
future litigations Further simplification of tariff structure 69%
• Close to 55% respondents believe that amnesty
schemes for customs would also fast-track dispute Ease compliance rules for Free Trade Agreement (FTA)
resolution, helping them to reduce time and cost
imports 62%
effort on this front
• 72% Energy representatives mentioned the need for
amnesty schemes for customs (related disputes) Amnesty scheme for customs (related disputes) (similar to
Sabka Vishwas, and Vivad se Vishwas) 54%
Implementation of DESH Bill/amendments to SEZ rules 36%
Others 3%
N = 181
Question: What could be some of the most effective changes in indirect tax regulations for your industry?
N = 181
Most sectors opted for simplification of the tariff structure as the most significant indirect tax change
investment goods manufacturing processing and health Technology
firms, and care
insurance
GST tax structure 74% 79% 75% 78% 59% 94% 59% 83% 85% 73%
changes
Further simplification of 79% 58% 65% 83% 82% 44% 71% 72% 65% 67%
the tariff structure
Ease compliance rules 74% 53% 65% 44% 65% 56% 71% 56% 75% 67%
for Free Trade
Agreement (FTA)
imports
Amnesty scheme for 32% 63% 65% 39% 53% 72% 65% 56% 40% 53%
customs (related
disputes)
Question: What could be some of the most effective changes in indirect tax regulations for your industry?
Ease of availing Input Tax Credit (ITC) and removal of GST credit restrictions are the top GST-related
changes expected from the budget
Energy, BFSI, and Lifesciences and Health Care amongst the top sectors to expect so
Expected GST related changes
Ease of availing Input Tax Credit (ITC) 58%
Removal of GST credit restrictions 41%

• Existing GST procedures need to allow for
rectification of previously filed returns, establishment Ease compliance burden 41%
of central AAR etc. to ease compliance
• More than 40% respondents highlighted easing Decriminalisation of GST law 36%
removing ambiguities and decriminalisation of GST
laws as important steps in promoting ease of doing
business Reduction in the number of slabs 30%
Set up of appellate forums for GST matters 23%
Clear guideline on tax policy for digital economy, i.e.,

3%
source income from crypto, online gaming, casino
Others 1% N = 138
This question was asked only to those respondents (138) who feel that a change in GST can be beneficial (selected GST changes in last question).
Question: What changes in GST can be beneficial for your industry?
Capital Goods and Chemicals amongst top sectors against GST credit restrictions
firms, and care
insurance
Ease of availing Input Tax 64% 73% 47% 64% 60% 88% 70% 73% 65% 45%
Credit (ITC)
Removal of GST credit 64% 53% 73% 79% 50% 41% 60% 53% 47% 64%
restrictions
Ease compliance burden 21% 47% 60% 29% 50% 41% 40% 33% 53% 36%
Decriminalisation of GST 29% 33% 40% 29% 30% 41% 40% 60% 65% 36%
law
Reduction in the number 64% 27% 40% 36% 40% 41% 30% 40% 18% 18%
of slabs
Set up of appellate forums 36% 27% 27% 43% 30% 29% 40% 13% 24% 45%
for GST matters
Question: What changes in GST can be beneficial for your industry?
About 40% of industry leaders think that granting indirect tax benefits to businesses and accelerating
the expenditure deduction will boost priority industries’ growth
Anticipated tax incentives for priority sectors
Benefit of indirect taxes to enterprises in the form of Accelerated deduction of expenditure incurred on Incentives for exports
an exemption window on customs duty or GST investment in businesses in these sectors, especially in
areas such as R&D
N = 181
2023 40% 34% 26%
N = 163
2022 53% 52%
• Along with PLII, further tax incentives are expected from the industry leaders. 40% of leaders (down from 53% last year) believe that benefits of indirect taxes should be
provided to firms in the form of GST or customs duty exemptions, such as manufacturing bonds
• Compared to 52% of industry leaders last year, 34% of leaders favoured expedited deduction of expenses related to company investment this year
• Incentivising exports is also an equally important measure as cited by 27% of the leaders
Question: What other tax incentives, along with PLI, can the government consider for enterprises in priority sectors?
Over 55% respondents feel that simplifying tax regulations and reporting demands can remove
ambiguities and improve compliance, leading to reduced litigations
Aspects to ease the compliance in taxation process Measures to reduce tax litigation
Simplified laws that create no ambiguity in

56%
interpretation
Ensuring smooth and timely functioning of

Simple tax regulations and Stable laws Avoiding dual
dispute resolution mechanisms such as faceless 53%
reporting demands investigations by multiple appeals, APA mechanism, Board for Advance…
51% tax authorities
56% Legislate the new fast-track conciliation process
49% that benefits both the tax department and 46%
taxpayer
Not sure 21%
Ease of availing credit with Others

• Invoking resolution at all
vendors, account payable rules Others 3%
1% levels
43% N = 181 • Flexible tax regimes
N = 181
• Over 51% respondents expressed the need for stable laws and newer compliance protocols
• Furthermore, ~50% also feel that avoiding dual investigations by multiple authorities can ease their compliance
• In addition to simplifying laws, majority of respondents also feel that ensuring the smooth and timely functioning of dispute resolution mechanisms such as faceless appeals,
Advance Pricing Agreement (APA) mechanism, Board for Advance Ruling (BAR) and Dispute Resolution Scheme (DRS) will reduce tax litigation
These are multiple select question; the sum of percentages will be above 100%
Question: What aspects in compliance should the government focus on to ease the taxation process? How do you think tax litigation can be reduced?
70% respondents expect changes in personal taxation; over 60% expect increase in exemption and
deduction limits
Changes in personal taxation, effective? Expected changes in personal taxation
Increasing tax exemption limit to boost liquidity 61%

and increase demand (consumer) 67%
Enhancement of the deduction limit, for example, 60%

for interest on home loans under section 24(B)
Increase in the yearly NPS contribution under 51%

Section 80C and Section 80CCD(1b)
47%
Rationalising income tax slabs and rates
69% 88% Exemption in provident fund contribution already

taxed
44%
2023 2022 37%

Making the employee’s contribution to EPF
voluntary 45%
N = 181 N = 163
2023 2022
N = 125
• Most respondents believe that increased exemption and deduction limits in personal taxes will lead to increased consumer demand for their industry.
• Increasing yearly NPS contribution (under Section 80C and Section 80CCD(1b)) and rationalising income tax slabs and rates have also been cited as effective by a significant number of
respondents
• The survey also assessed the effectiveness of the New Tax Regime and found that the response was divided. However, most respondents cited that the New tax regime needs further
simplification
These are multiple select question; the sum of percentages will be above 100%
Question: Do you think any change in personal taxation would help increase demand in your industry? If yes, what do you think can ease individuals’ tax burdens?
Further simplification of new tax regime is expected by the majority of respondents
Implementation of the New Tax Regime
6%
13%
More simplification of new regime
42% Two regimes—Old and New Regime—are working fine
15% New regime is better than the old regime
Old regime is better than the new regime
Not sure
24%
N = 181
Question: The New Tax regime was introduced in Budget 2020-21. How do you see its implementation in the future?

Respondents across sectors expect enhancement of the deduction limit, such as interest on home
loans
firms, and care
insurance
Increasing tax exemption limit 53% 56% 64% 50% 53% 44% 70% 85% 73% 56%
to boost liquidity and increase
demand
Enhancement of the deduction 47% 69% 55% 50% 80% 56% 40% 62% 80% 44%
limit, for example, for interest
on home loans under section
24(B)
Increase in the yearly NPS 47% 31% 55% 75% 47% 44% 70% 62% 33% 67%
contribution under Section 80C
and Section 80CCD(1b)
Rationalising income tax slabs 67% 56% 36% 50% 47% 67% 50% 31% 20% 56%
and rates
Exemption in provident fund 67% 56% 27% 33% 33% 56% 20% 31% 53% 56%
contribution already taxed
Making the employee’s 20% 31% 64% 42% 40% 33% 50% 31% 40% 22%
contribution to EPF voluntary
Question: The New Tax regime was introduced in Budget 2020-21. How do you see its implementation in the future?
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Pre-Budget

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 2

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 3

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 4

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 5

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 6

Positive economic growth outlook amongst the leaders

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 7

Widening the scope of PLI

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 8

Taxation policy reforms expectations

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 9

Outlook 2023 2022

Industry Expectation 2023 2022

Electronics manufacturing 65% 35%

4% Food processing 47% 53%

Pro-growth factors recognised by respondents Headwinds to the growth identified by respondents

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 13

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 15

Has Digitisation been helpful? Sector-wise

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 17

70% GST portal enabling filing returns, refunds, and doubt

67% E-invoicing system

Computer-based selection results in limited cases

62% E-way bill

CPC enabling e-Filing and e-Processing of tax returns

57% Input tax credit reconciliation

48% Faceless assessments N = 181

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 18

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 19

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 20

Question: How, according to you, can India become a technology powerhouse?

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 21

Automotive 37% 37% 26%

2022 2% 20% 23% 48% 7% Chemicals 33% 45% 22%

Electronics manufacturing 6% 6% 29% 59%

Food processing 24% 41% 35%

Lifesciences and health care 39% 39% 22%

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 23

Incentivising private sector

Perception of trade treaties

Will create market for my product 80% 4% 16%

Will enhance role in global value chain 81% 8% 11%

Will increase the investment in-flows 69% 7% 24%

Will offer access to emerging technologies 61% 8% 31%

Will hamper the growth/ expansion of small/middle scale

Measures increase private investment in infrastructure

What measures according to you can increase private investment in infrastructure?

Measures to support manufacturing • 60% of respondents expected import duties

Making import duties

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 28

Expectations regarding ESG measures • With the government pledging to being

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 29

© 2023 Deloitte Touche Tohmatsu India LLP. Pre-Budget Survey 2023 30

Is Atmanirbhar Bharat effective? Expectations from Atmanirbhar Bharat

90% 91% Easy clearance to promote

Perception of the PLI scheme Expectations from the PLI scheme

Facilitating and increasing production capacity

Increasing the ambit of the PLI scheme to other

70% 25% 5% Encouraging investment from within and