Union Budget 2016-17 Reactions from Each and Every Sectors

MP Supriya Sule

आज सादर करण्यात आलेल्या केंद्रीय अर्थसंकल्पाबाबत संमिश्र भावना आहे. राज्यासह देशातल्या विविध भागात दुष्काळी परिस्थिती असतांना त्यावर ठोस अशी कोणतीही उपाययोजना करण्यात आलेली नाही.

Mr. Amol Naikawadi, Joint Managing Director, Indus Health Plus

 “The overall Union Budget 2016 has been welcoming and focused on empowerment on the bottom pyramid of the society from all aspects. Introduction of National Dialysis Service Programme is a good initiative towards the solving the healthcare issues at the district level to reduce the cost of treatment under PPP model. Also, LPG connection for women members of rural homes will help in reducing the disease burden due to Chula smoking. The increase in tax exemption limit was a positive move to encourage people to equip themselves with health insurance. The another great initiative by the government is to provide health insurance of upto Rs. 1 lakh per family; extra of Rs. 30,000 for people above 60 years (senior citizens). However no special emphasis were given to other requirements of the health care sector at large”.

Ms. Geetha Kannan, Managing Director, The Anita Borg Institute (ABI) India

“It seems with the nine-pillar budget our government has really gone the whole nine yards on focusing on the bedrocks of our economy. The thrust on agriculture, rural, social healthcare, infrastructure and education could have a big push on the economic growth of India. The allocation of Rs 500 cr under the Stand-Up India scheme for SC/ST and women entrepreneurs is very positive. Now it’s up to all the women entrepreneurs out there to capitalize on this opportunity. The budget still seems to fall short on benefits and incentives offered to improve the financial well-being of women who make up close to half of our population. The budget also offers very little for the individual tax payer.”

Mr. Vikram Kotnis, Founder and Managing Director, Amura Marketing Technologies Pvt. Ltd.

“We would like to congratulate the government for presenting a promising budget. The budget is in alignment with the PM’s vision – housing for all.

The budget delivers a good move for the low income group, below 60 sq mtrs,  in the affordable housing segment as it eases out the service tax.  100% exemption of profit for developers and exemption from service tax for construction of houses less than 650 sq feet will spur new launches in the affordable segment.

The demand for the mid income segment is high and tax collected by the government from this sector is 10-14%, hence the budget could have provided a relief in service tax for  80-90 sq. mt. segment (compact 2bhk). “

Ms. Puja Bansal, Founder & Director – MyHeera.com

The union budget is encouraging and recognizes the role of start-ups in the entire ‘Make in India’ scheme of things. The current budget has presented multi-dimensional benefits for start-up fraternity. On one hand, the budget has made a provision of a Rs. 500 crore fund for women entrepreneurs under the Stand Up India scheme and on the other it has also ensured they prosper well by allowing 100% tax exemptions for three of the first five years of start-ups for the startups set up during April 2016 to March 2019. Rs. 500 fund provision will not only prove encouraging for the women entrepreneurs, it will also help government agenda of women empowerment.

Government focus on skill development and rural development is another area which will help start-up segment indirectly. Skilling one crore youths will create a huge pool of skilled workforce which will not only help the segment but also encourage many youths to take up the start-up route. Rs. 87,000 budget allocation for rural development and more than Rs. 1.40 lakh crore for agriculture sector will also create huge market for the segment as well as help create many entrepreneurs.

Mr. Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.

Nifty traded extremely volatile in reaction to Union Budget announcements on Monday and finally closed down after seesawing through the day. After a subdued start, it slipped quickly as the market seemed to give a thumb down to the budget initially. But, the government’s plan to stick on fiscal consolidation path eased their pain and triggered a sharp rebound in index as the session progressed.

It’ll take at least a session or two for markets to digest the Union Budget announcements, meanwhile volatility will continue to keep traders on edge. Despite the strong intraday swings, key levels are intact in Nifty and so is our negative view. We suggest traders don’t give much weightage to intraday bounce and wait for Nifty to sustain above 7200 for reversal confirmation. Eventually the budget is just another brick in the wall of factors which decide market direction.

Mr. MK Dhanuka, Managing Director, Dhanuka Agritech

“Doubling the farmers Income in five years will have an encouraging impact on the financial conditions of farmers. Rs. 28.5 lakh hectare of land will be brought under irrigation and 23 projects will be completed by March, 2017 for which the Government has allocated Rs. 17000 crores. This will increase the production and will help the Government’s initiative for 2ndGreen Revolution. Further, launching of e-platform for marketing is a welcome step as farmers will be able to get the right price for his crop. Allocation of Rs. 9 lakh crores for Agriculture loan to farmers and Rs. 87000 crores to rural sector will increase the rural demand. Government’s thrust for growth of Agriculture and rural sector development including implementation of schemes like soil health card, crop insurance and irrigation facilities will motivate farmer to continue his interest in Agriculture.”

Ambuja Cements Ltd MD & CEO Ajay Kapur 

Budget 2016 is a mix of opportunities and challenges.

“We are positive that with the increase in the total outlay for infrastructure (at Rs 2,21,246 crore) by approx 13 % compared to the previous year, will act as a demand driver for the cement sector. The proposals on increased investments (Rs 97,000 crore) on roadsaugur well for the cement industry. The Centre has announced some promising initiatives which would add to the growth story, subject to its realization. An increase in clean environment cess and introduction of Krishi Kalyan cess will impact profitability for the cement industry. And so will packing excise on HDPE bags and decrease in Sale commission (from 10% to 05).  The Government’s plans to skill 1 crore Indian youth, through 1500 multi-skill development centres, over the next three years is in tandem with the visionary approach with the CSR initiatives undertaken by Ambuja.

The rail budget announced late last week had no hike in freight fares which bodes well for the cement industry. The expansion of the freight basket by IR has been widely welcomed. The Manufacturing sector will also benefit from rationalisation of the tariff structure.”

Mritunjay Singh, COO and Executive Director, Persistent Systems

“The budget presented by the Finance Minister is well-balanced. Particularly with respect to the global economy this last year, it’s commendable that the fiscal deficit is maintained at 3.5%. It’s heartening to see the impetus this budget intends to provide to the rural economy and the importance given to social security. The budget has been in alignment with the government’s vision of making the environment for business much more conducive and encouraging the rising entrepreneurial spirit amongst the Indian people.

Initiatives like Smart Cities, Make in India and Digital India have already opened up hordes of opportunities for Persistent and other companies, and this budget carries forward the government’s vision of using technology to help the country continue on its growth trajectory. Initiatives like the launch of a new Digital Literacy Mission Scheme to cover around 6 crore additional households within the next 3 years to spread digital literacy in rural India will truly help to bring the Digital India mission at grassroots level.

I’m confident that this budget will help the country continue its ascendency which will better the lives of citizens.”

Mr. Anil Chopra – Group CEO & Director, Bajaj Capital Ltd.

“Union Budget is an annual exercise with the main objective of giving a direction to country’s economy.  This year’s Budget tabled today in the Parliament has cheered middle classes or the common man with quite a few announcements.

First of all, every taxpayer whose annual income is below Rs.5 lacs will get an additional tax rebate of Rs.3,000 U/s 87A.  In the last Budget, this marginal relief was announced and the amount was restricted to Rs.2,000 per individual.  Now this rebate has been enhanced to Rs.5,000/-  This rebate is available to all taxpayers whether salaried or business or self-employed.

In addition to above, for salaried individuals who live in rented property and do not get any rent reimbursements from their employer, they will get extra relief which has now been increased from Rs.24,000 per year to Rs.60,000 per year.

There is good news for the first time new home buyer also provided the total house value is less than Rs.50 lacs and the housing loan taken for buying this property is up to Rs.35 lacs, there is an additional deduction of Rs.50,000/- for such individuals (Section 80 EE).

Whereas taxpayers with low income have been given additional relief as explained above, on the other hand super rich taxpayers will have to now pay a higher tax than before.  These are small steps in the direction of reducing inequality in incomes.  For super-rich taxpayers whose annual taxable income is more than Rs.1 crore, they will have to pay additional surcharge @ 15% on their total tax liability as against 12% the previous year.  Also, if annual dividend income is higher than Rs.10 lacs then same will be taxed @ 10% whereas the same was exempt from tax in the previous year.

On the whole, it is a mix Budget with marginal changes here and there and the only change which will have an impact on everybody, including housewives and senior citizens is increase in Service Tax rate from 14.5% to 15% due to levy of a new Krishi Kalyan Cess @ 0.5%.”

Fr. E. Abraham S.J. Director, XLRI- Xavier School of Management

We are delighted that the government has taken a decision to empower Higher Educational Institutions to help them become world class teaching and research institutions by seeking to put in place an enabling regulatory architecture so that ten public and ten private institutions may emerge as world-class Teaching and Research Institutions. This move is definitely a step in the right direction. Top-tier, privately managed management education institutions have been adversely impacted in recent times as a consequence of the prevailing, differentiated, non-level playing ground policy framework vis-a-vis government-funded IIMs.

We also welcome the decision to set up a Higher Education Financing Agency (HEFA) with an initial capital base of Rs.1,000 crores. Currently, Top-tier, privately managed management educations have to finance all capital expenditure like campus expansion, classrooms up gradation etc. through internal accruals. On the other hand, government-funded IIMs are extended financial support by the government for various capital expenditure initiatives.

Mr. Deo Shankar Tripathi has been the Chief Executive Officer of Aadhar Housing Finance Private Limited.

“The FY17 budget is exceptional for the housing finance sector which is playing a lead role in ensuring housing for LIG and EWS segment population. The exemption of Service tax on affordable houses upto 60 sq meter constructed by Central or State Govt or under PPP is another big announcement. The minister deserves special kudos for introducing 100% deduction to undertakings for construction of affordable housing. This will help us in realizing the honourable PM’s “Housing for all by 2022” scheme.

We welcome the decision of the Ministry to introduce guidelines for renegotiation of PPP contracts and reform dispute redressal mechanism for PPP projects. This move, we believe, will go a long way in encouraging private participation in the development of affordable housing projects. The decision to exempt REITS from DDT is also very encouraging and shows government’s commitment to give boost to real estate sector which is currently witnessing slowdown.

Aadhar is of the view that it is necessary to empower LIG and EWS customer for greater affordability. In this context, the decision to give additional exemption of Rs 50,000 for housing loan upto Rs 35 lakh sanctioned in 2016-17 for 1st time home buyer provided the cost of house is not above Rs 50 lakh is praiseworthy. This will ensure that more LMI customers will fulfil their dream of owning a home of their own.

The decision to deepen corporate bond market and announce initiatives to reinvigorate private sector would be a great shot in the arm for private sector. This coupled with reduction in corporate tax rates from 30% to 29% from FY18 for companies with turnover less than Rs. 5 crore will boost the smaller housing finance companies catering to LIG and EWS segment besides SMEs. The budget has given due emphasis on Agriculture, Rural , Social, Health, skill development which will boost rural economy and create more job opportunities.

Mr. Narendra Barhate – MD and CEO, SEED Infotech Ltd.

This budget boosts entrepreneurship and skill development. The announcement of allocating 1804 cr for skill development is very welcoming. However, it would only be commendable after its effective implementation and execution. The significant importance given to Digital Literacy will not only lead India towards speedy technical advancement but will also boost its overall development.

This Budget has avoided mega announcements or mega actions or populistic approach and covers bottom of pyramid population and base of economy rather than so called middle class or Industry. These actions will improve situation on lower level that will naturally lead to demand generation hence Industry will get boost.