New Delhi, Feb 1 (IANS): The PHD Chamber of Commerce and Industry (PHDCCI) on Wednesday termed the Union Budget 2023-24 as demand sustaining, investment inducing and growth-oriented.

"Budget 2023-24 has been announced at a time when India finds itself in the bright spot as the growth of Indian economy is highest among the leading economies," said Saket Dalmia, President, PHDCCI, while reacting to the Budget that was presented in the Parliament by Finance Minister Nirmala Sitharaman on Wednesday.

Dalmia said that inflation has come down with the calibrated efforts of the government. Domestic demand is also showing sound signs of recovery, while the credit for the MSME sector has shown around 30 per cent growth, he said.

"The Finance Minister should be praised for reducing tax slabs and furthering economic growth by increasing the budget for infrastructure. The government has presented an ambitious Budget that is expected to have a significant impact on various sectors.

"She has made a strong commitment to capital expenditure, which will have a positive effect on the Indian industry and create employment opportunities. In terms of investments, the central capital expenditure has been raised by a remarkable 33 per cent - a total of Rs 10 lakh crore," the PHDCCI President said.

Dalmia said that to encourage infrastructure investment and support local industries, the Centre will provide 50-year interest-free loans to the state governments for an additional year.

"Additionally, the Central government has raised the income tax rebate for salaried class earnings up to Rs 7 lakh from its previous limit of Rs 5 lakh, providing substantial relief to millions of individuals," Dalmia said.

The Prime Minister Awas Yojana has seen a remarkable 66 per cent increase in its funding, from Rs 47,500 crore in the previous year to 79,000 crore now. The generous fund allotment will allow for the improvement of existing resources and provide improved urban housing options to a large section of the population, Dalmia said.