Budget 2023: GIFT City, Diamond Industry Hail Launchpad for Developed India

Ahmedabad, Jul 23 (PTI) The diamond sector and GIFT City in Gujarat on Tuesday welcomed the Union Budget presented by Finance Minister Nirmala Sitharaman, with industry leaders calling it a launchpad for a developed India.

Sitharaman announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and allocated Rs 1.52 lakh crore for agriculture and allied sectors.

She also abolished the 'angel tax' for all classes of investors in startups, cut customs duty on mobile phones and gold and simplified capital gains tax.

Tax exemptions for retail schemes and exchange-traded funds (ETFs) set up in the International Financial Services Centre (IFSC) will create business opportunities for asset management companies at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, its managing director Tapan Ray said.

"The move is expected to attract investments from NRIs and foreign retail investors into India. We thank the Union government for its continued support in helping GIFT City become a truly vibrant global financial centre," he said.

Vijay Mangukiya, Gujarat regional chairman of the Gem and Jewellery Export Promotion Council (GJEPC), said the Budget has met several of the industry's demands.

The abolition of the 2 per cent equalisation levy on online auction of rough diamonds for companies based in India will help save money, he said.

"Furthermore, the safe harbour rule on the sale of rough diamonds at special notified zones (SNZs) will help miners display and sell their goods (rough diamonds) easily and save transportation and time," Mangukiya said.

Nirav Mandalewala, secretary of the South Gujarat Chamber of Commerce and Industry, termed the Budget "inclusive" and called it a "launchpad budget for a developed India".

"All the areas — industries, health, women and youth have been covered. Reduction of GST on cancer medicines and reduction of custom duty on X-ray machines will make them cheaper," he said.

Ashish Gujarati, a textile manufacturer, said a cut in customs duty on spandex yarn raw material is a welcome step to help the industry.

Parth Ganatra, vice president of the Rajkot Chamber of Commerce and Industry, said the reforms in the tax slab for the new tax regime were a welcome step.

"But we wanted benefits for the old tax regime as well," he said.

For the middle class, the finance minister raised the standard deduction — a flat deduction from the total salary earned by an employee in a year before calculating the applicable income tax rate — by 50 per cent to Rs 75,000 and tweaked tax slabs for taxpayers opting for the new income tax regime.

This will lead to taxpayers under the new tax regime — which offers lower rates of taxes but permits limited deductions and exemptions — saving up to Rs 17,500 in tax annually.

Priyam Patel, managing director of Ahmedabad-based NK Proteins Pvt Ltd, producers of edible oil, said the Union government has maintained a strong focus on enhancing agricultural productivity and resilience.

"The substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors underscores this commitment. Initiatives for self-sufficiency in pulses and oilseeds, particularly groundnut, sesame, and sunflower, are pivotal for Atmanirbharta in the edible oil sector," he said.

The emphasis on digital crop surveys and strengthening storage and marketing infrastructure will benefit farmers and ensure a robust and stable agricultural sector, Patel added.