Union Budget 2023: Here's why Mumbai's businesses and taxpayers can rejoice

As the financial capital of India, Mumbai is home to the stock market and a bulk of India Inc which were bound to be affected by Union Budget 2023 the announcement in Delhi. But the economic policy framed in the national capital also has an impact on common Mumbaikars, who have seen major projects such as IFSC planned for Bandra Kurla Complex and a semiconductor plan going to other states. From highways to railways and real estate, infrastructure related announcements, apart from provisions to increase ease of doing business are crucial for Mumbai.

Infra spending to boost connectivity

The funds set aside for capital expenditure have been increased for the thirs straight year by 33 per cent to touch Rs 10 lakh crores. With capex forming 3.3 per cent of GDP, highways, airports and ports among other infrastructure projects may have better connectivity in store for Mumbai.

More Vande Bharat and freight trains in store?

The financial capital is already awaiting more Vande Bharat trains to connect it with other parts of Maharashtra such as Shirdi and Solapur, as well as major cities in other states. The railways also have plans to introduce freight trains along the lines of Vande Bharat, and that could benefit an industrial hub such as Mumbai. With the highest ever outlay of Rs 2.4 lakh crore for the railways, the Union Budget 2023 may come as a blessing for the maximum city.

Mumbai's middle class can rejoice

Among a third of all direct taxes collected in India are paid by Mumbaikars, which means that any shift in income tax slabs will affect the city's residents. Since people with an income up to Rs 7 lakh per year don't need to pay any tax under the new tax regime, the decision will come as a relief for a large number of middle class Mumbaikars.

Apart from the above, schemes such as small savings schemes for women, and doubling the deposit limit for the elderly, will also boost savings and investment for Mumbaikars.

Realtors have reason to smile

With high-end housing sales in Mumbai on the rise, capping the price of residential property to claim tax exemptions at Rs 10 crore, will help drive up investments in the city's real estate.