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The much-anticipated Union Budget for 2023-24 carries the weight of expectations from across sectors amid fears of a global slowdown bearing down on domestic prospects. While the tech sector hopes for an accelerated Digital India push, small businesses are seeking easier access to loans.

The Budget is also the first post the pandemic slump as India’s economic recovery from the impact of COVID-19 is near complete. GDP is projected to grow at 6% to 6.8% in FY 2024, according to the Economic Survey 2022-23 tabled by Union Finance Minister Nirmala Sitharaman in Parliament on Tuesday. 

The survey projects baseline GDP growth of 6%-6.5% in real terms in the coming fiscal year. This is slower than the expected 7% growth in real terms for FY 2022-23, following an 8.7% growth in the year prior. But it’s much better than the IMF’s projection for global growth at 2.9% in 2023.

As for headline inflation, while RBI has projected it at 6.8% for FY 2023—outside of its target limit—the survey document insists inflation is “not high enough” to deter private consumption or weaken investments. 

With macro factors stacked in favour, the fifth Budget by Nirmala Sitharaman is expected to continue the momentum of driving growth across sectors.

With an increase in digital connectivity, startups and the IT sector stand to benefit the most.

The IT-BPM sector recorded double-digit growth during the fiscal year, with exports growing by 17.2%. The technology sector has been vocal about bringing changes in taxation, export and other policies to ensure steady growth.

The rising number of startups, particularly in India’s small cities and towns, has resulted in significant job creation, with government-recognised startups creating over nine lakh direct jobs in India in 2022—a 64% increase over the last three years. 

With this being the last full-year Budget ahead of the national election in 2024 and the first after the Covid-ravaged years, the Indian startup ecosystem has pinned its hopes on the red bahi-khata.