POST-BUDGET REACTIONS FROM INDUSTRIES

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05 July 2019, Nation :

Tata Capital – Mr. Rajiv Sabharwal, MD and CEO, Tata Capital

This Budget reinforces the important role that NBFC and HFCs play in credit delivery. The capitalization boost for Banks, Credit guarantee for high rated asset pools and easing of the reserve requirements in Public Issue of debentures will further enable flow of liquidity to well-performing NBFCs with strong balance sheets.

The overall regulatory supervision of NBFC/ HFCs under the RBI umbrella is welcome

Simplification of KYC norms for FPIs, more FDI in multiple sectors, seamless access to the equity market for NRIs will further enhance capital flow (in the economy)

The announcement to set up a Credit Guarantee Enhancement Corporation will help in deepening the bond market with a special focus on infrastructure investment and development.

Overall, this Budget has taken special efforts to boost investor confidence through its various initiatives. These steps will also pave way in ensuring and strengthening the flow of funds for NBFC/ HFC players.

Somasundaram PR, Managing Director, India, World Gold Council

“Today’s announced import duty hike on gold from 10% to 12.5% will negatively impact India’s gold industry. It will impede efforts to make gold as an asset class particularly when gold prices are already rising globally. In addition, the grey market will thrive which will dilute efforts to reduce cash transactions.

Millions of Indians invest in gold as part of their household savings, not simply as discretionary spending for consumption. People buy gold as a long-term investment to protect their wealth and gold also has huge significance socially, emotionally and economically in India.

An increase in duty will be counterproductive to the objectives stated in the previous year’s budget and encapsulated in NITI Aayog’s recommendations for transforming the gold market. We believe that gold can play a positive role in the Indian economy, but to enable this; there needs to be a reduction in overall taxes, a stable policy environment and a transparent trading market.“

Kalyan Krishnamurthy, CEO, Flipkart Group

“It is good to see the government renew its commitment to boost ‘digital India’ in the budget presented by FM Smt Nirmala Sitharaman. The Government’s vision on bridging the rural-urban divide with internet penetration will be pivotal in transforming India into a $5 trillion economy.

It is good to see the impetus given to Start ups, MSMEs and FPOs — which form the backbone of our economy and also to Electric Vehicles. Further, by setting up a National Research Foundation, addressing challenges faced by start-ups, and committing to transforming the education system, the budget is set to boost innovation in the country. Innovation will form the bedrock of the digital economy in India.

The proposal to invest Rs. 100 lakh crore in infrastructure bodes well for job creation and boosting demand, manufacturing and consumer income. As the Prime Minister Modi led government continues to push for Ease of Doing Business for MSMEs and industries, we at Flipkart Marketplace will be happy to continue connecting millions of MSME sellers, manufacturers and artisans with consumers efficiently & in cost effective manner.”

Balasubramaniam, MD& CEO of India International Exchange IFSC Ltd. (India INX)

Balasubramaniam, MD& CEO of India International Exchange IFSC Ltd. (India INX)said, “The Union Budget presented lots of opportunities for the IFSC. Extending income tax exemption to 10 years from 5 years and exempting dividend distribution tax is very much welcome. Permitting Aircraft Financing and Leasing activity in IFSC will be a boost to GIFT City and help in bringing new business.

Another significant announcement by the government is the exemption of Alternate Investment Funds from the Capital Gains, which will attract them to move from other DTAA jurisdictions. Lastly fastracking the Unified IFSC Regulatory Authority will augur well to focus on growing the IFSC. We think over the next few years GIFT IFSC alone can provide USD 1 Trillion to Indian Industry and Infrastructure and will be a critical part of the USD 5 Trillion GDP target over the next few years.”

SWATI DESHPANDE Director (Operations),Datar Cancer Genetics Limited

Surprisingly in the budget there was no mention of any benefits and plans for healthcare! However certain positives are the proposals to set up the National Research Centre and Annual Global Investors Meet, both the initiatives that will help give an impetus and attract research proposals and funding to India’s potential. Easing of Angel tax and relief from IT scrutiny for start-ups are great encouragement for the sector.

While announcing large scale projects for electric cars, the government has completely ignored the bio-medical sector which has the potential to be a global research hub for fields like genetic research, bio-informatics and AI in healthcare.

CREDAI President, Satish Magar

Finance Minister in her maiden Budget has marshaled all resources to the cause of ‘New India’. She has exercised utmost discipline to avoid populism. I am personally happy that Government acknowledges the contribution of private sector and the taxpayer in nation building.
The redeeming feature of Economic Survey is putting investments at the center of growth strategy. However, Budget does not yield direct signals on the strategy.

We are happy that Government claims real estate reforms in last five years among three biggest policy initiatives of 2014-19.
It is heartening that CREDAI’s long standing proposals to reform archaic rental laws and promote public housing on government land figure among the immediate policy agenda outlined by FM.

There are a host of measures to boost financial sector. Boosting capital of PSBs, reforms on corporate bonds announced. Rs. 1 lakh crore guarantee by Govt. to banks for purchasing high rated pooled assets of sound NBFCs with loss limit of 10 per cent may ease the current liquidity constraints.

Regulation of Housing Finance Companies is being returned from NHB to RBI. We hope that RBI would bring about much needed reforms for financing of real estate sector such as financing of land, giving priority sector status to housing finance and lower cost of funding.

Additional deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakhs. Total benefit from the measure rises to Rs. 3.5 lakh. FM says net gain to the consumer would be Rs. 7 lakhs. It gives hope that the impact on housing demand would be watched and further steps taken.

It is to the credit of the Government to reform multiple Labor Laws and to rationalize them into four codes.
CREDAI has a strong social agenda. Hence, announcement on Swachh Bharat is being expanded to cover Solid Waste Management and Skill Development encourage all of us at CREDAI.

Zarin Daruwala, India CEO, Standard Chartered on Union Budget 2019Zarin Daruwala, CEO, India, Standard Chartered Bank said,“The Budget lays down a vision for the next five years while staying rightly focussed on completion of the already initiated policy changes. It also signals the government’s commitment towards fiscal consolidation. The steps to shore up the financial sector via PSU bank recapitalisation, partial credit support to financially sound NBFCs and change in regulator for HFCs are key positives, in my view. The measures to serve the interest of various sectors – MSMEs, affordable housing and underprivileged segments like retail traders – are much needed and welcome. The announcements like further liberalisation of the foreign investment regime, issuance of sovereign Dollar bonds, deepening of long-term bond markets, rationalisation of labour laws, focus on infrastructure investment are steps in the right direction. On balance, the Budget would help boost the medium-term growth potential of the economy.”

KEI INDUSTRIES – Statement by Mr Anil Gupta, CMD of KEI Industries Ltd on the Budget2019

‘We would appreciate development centric forward looking budget, which will impact every household of the country and industry will witness new horizon of development. The maiden Budget has laid special emphasis on the much awaited infrastructural development where the Government will invest Rs 100 Lakh crores in this segment for the next five years. The power sector has seen phenomenal growth achieving the electrification of almost 96% of households in the last 5 years. This large growth in the sector can be attributed to the infrastructure boom in India creating more avenues for companies like ours. Investments in railways, housing and farm are paramount to overall infra-growth for our company. The Government is also planning to invest 50 Lakh crores for Railways which will further boost the demand resulting in expansion of our business. Furthermore, the Government has shed light on the plan of One nation, One Grid & the Pradhan Mantri Gram Sadak Yojna will be a standalone element in ensuring power connectivity at affordable rates.’

Vivek Gupta, Partner and National Head – M&A/ PE Tax, KPMG in India

“Move for moving minimum public shareholding for listed companies from 25% to 35% must be implemented carefully. Timing, applicability, etc to be closely evaluated – we don’t want this to be another “forced sale”. Good opportunity for institutional capital and funds.”

Manish Jain, Partner – Digital, KPMG in India

India has taken big leap in digital data, digital infrastructure has widened and we can harness AI and analytics for governance and enhancing the revenue.
Research needs lots of focus in the third largest economy in the world.
Digital economy will get the big boost with the investments going forward.
Bharat net will bridge the gap in digital literacy between rural and urban divide. Public private partnership will be key for the execution.
Leveraging DD channel for startups will give platform to showcase the innovation and amplify the innovation demand supply chain.

CBRE – Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBREThe government has announced a progressive budget which will go a long way in creation of a well-balanced and empowered economy. The Finance Minister Ms Nirmala Sitharaman in her first ever budget presentation struck a fine balance between ease of doing business and ease of living in the country. While expressing confidence that the size of our economy will touch USD 3 trillion by end of the present financial year, she also expressed hope that we will be able to become a USD 5 trillion economy (world’s 3^rdlargest) by 2024-25. She also recognised and appreciated the role played by India Inc in driving the self-sufficiency goals of the country and being a partner in achieving national goals related to employment generation, wealth creation and sustained growth.The allocation of Rs 100 lakh crores for infrastructure development in the next five years is a move in a positive direction. Increased allocation for the development of railways, ports, roads, aviation and intra-city networks such as metro rail, will strengthen the overall infrastructure fabric of the country. In particular, it is commendable that the government has paid due emphasis to further empower the rural economy. The FM specifically mentioned the requirement for investing in rural road infrastructure, connectivity and rural housing and promised construction of 1.95 crore rural homes by 2022 under the government’s Housing for All scheme and equipping these homes with toilets, electricity and LPG connections.On the housing front, an additional deduction of Rs 1.5 lakh has been proposed on interest paid for affordable housing loans till March 2020. A model rental tenancy law will also be established to enhance the rental housing market. These measures, besides sustained investment in the Pradhan Mantri Awas Yojna will continue to support the housing market in the country.On the shadow banking sector, the government maintained a fine balance between ensuring liquidity and enhancing scrutiny. Placing housing finance companies under the ambit of the RBI and incentives such as credit guarantees for NBFCs will provide a relief to this sector.Other key steps such as easing sourcing norms for single-brand retail, enablers for start-ups, the proposed revision of labour laws, enhancing FDI limits for sectors such as aviation, promoting skill upgradation and focusing on the improvement of foreign investor confidence will strengthen both ease of doing business and ease of living in the country. While several measures have been announced by the Finance Minister to attract greater investments from all possible routes, the actual impact will be realised only post their effective implementation. It definitely provides a good opportunity for all stakeholders to come together and move towards common goals.

CEAMA , Mr. Kamal Nandi, President, CEAMA and Business Head & EVP, Godrej Appliances, Consumer Electronics and Appliances Manufacturers Association (CEAMA), an apex body representing Consumer Electronics, Home Appliances and Mobile Industry, welcomed the amendments made by the Government in the custom duty structure for a number of items – components as well as finished goods – that will encourage domestic manufacture of multiple segments of the Appliance and Consumer Electronics market.Import of Split Air Conditioners (Indoor and Outdoor units) will each attract Customs Duty of 20%. While Outdoor units has by and large been indigenised, indoor units has yet to achieve the same degree of localisation, which will now be boosted. Imposition of Customs Duty on a number of emerging and high growth product categories such as CCTV and IPTV cameras and DVR/NVR which are largely imported will attract interest from domestic manufacturers as the import duty imposed (20%) gives them a level of protection. Loudspeakers made in India and under threat from imports will get a protection with import duty going up by 5% to 15%). Waiver of duty on capital goods for manufacture of chargers, adaptors, camera modules (for cellular mobile phones) and machinery to make Open Cells (for television sets) and Populated Printed Circuit Boards used widely in the industry, will encourage suppliers to set up manufacturing in India.CEAMA has been making efforts to improve the domestic manufacturing eco-system of appliances and consumer electronics and a number of the announcements were recommended by CEAMA.

Mr. Kamal Nandi, President, CEAMA and Business Head & EVP, Godrej Appliances, said, “CEAMA is committed to promote indigenous manufacturing of appliances and consumer electronics in the country and the announcements in this budget shall provide the necessary boost to the Government’s initiative of ‘Make in India’. That said, we were hopeful of concrete measures that would accelerate demand. CEAMA will continue to work closely with government to formulate more policies to develop the appliance and consumer electronics industry in India.”
Governments continued attention towards skilling especially new age skill sets such as AI, Robotics will help improve the quality and quantity of skilled labour – critical to industrial growth. Rural electrification which aims to touch every household by March 2022 coupled with infrastructural push via Gram Sadak Yojana and the rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should therefore improve faster.
Electronics hardware production in the country increased from Rs 1.90 trillion (US$ 31.13 billion) in FY14 to Rs 3.88 trillion (US$ 60.13 billion) in FY18. Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24. The above initiatives will surely serve as a major growth driver in expansion of the segment.

Makrand Appalwar, Founder & CMD, Emmbi Industries

Har Ghar Jal, will be a dream come true for the Indians, particularly the population which stays in rural economy. We welcome the Hon. Finance Minister’s Union Budget and its intent to ensure water security in the country. We are happy that the Government is giving priority to providing access to safe and adequate drinking water to all Indians. Water, water management, clean Rivers feature prominently in the Government’s Vision for the Decade.The Jal Jeevan Mission will converge with other Central and State Government Schemes to achieve its objectives of sustainable water supply management across the country. This is an extension to the first-ever formation of Union Ministry of Jal Shakti, which will administer and lay down guidelines for development of water resources in India. Water conservation is the need of the hour, when the whole country is grappling with scarcity of water.Mumbai and adjoining regions have witnessed highest rainfall of the season, however the rest of the State of Maharashtra the water scarcity problem still persists. It is estimated by NITI Aayog that India has been facing the worst water crisis in its history. Over 60% of the country is vulnerable to drought and one-third of the country’s districts have faced more than 4 droughts in the past decade. There is a downward trend in water levels in at least 71 of 91 reservoirs across India according to data released by the Central Water Commission (CWC). The situation is particularly grim in the north-western region — in Gujarat and Maharashtra — and in the southern states of Kerala and Tamil Nadu. Maharashtra’s situation is especially grim with deficiency in water reserves in its reservoirs at 68 per cent while Gujarat faced a shortage of 22 per cent.We believe that proper methods for irrigation, percolation to increase ground water levels, end-to-end solutions to offer last mile connectivity from rivers to the farms etc should be given utmost priority which will avoid wastage of rain water, proper water management process will be in place and water can be saved for livelihood. The government should encourage water conservation on the lines of the Swachh Bharat Abhiyan, as saving water is saving life.Will urge the government to form a PPP model for water conservation across the country in association with various state governments and also central government should offer subsidies’ to farmers who are embracing water conservation.

SIAM welcomes support for Electric Vehicles

Congratulating the Finance Minister on her maiden Budget, Mr. Rajan Wadhera, President, SIAM has said that the automotive industry is happy that the Finance Minister has extended wholehearted support to electric mobility, but this will not help the automotive industry in emerging from the current steep slowdown it is facing today.

We warmly welcome the various additional measures announced to promote EVs like reducing the GST to 5%, exemption in customs duty on EV parts and specially the Income Tax deduction on the interest component paid for loans taken for purchasing EVs. All these were recommendations given by SIAM and we are grateful to the FM for having accepted them. These measures will certainly help in making EVs more affordable and attractive to the consumers, which is in line with the recommendations made in the Economic Survey.

However, the auto industry is currently going through a very difficult time and the industry was expecting some form of a stimulus package in the Budget in line with what had been done by Government during the previous two similar slowdowns. It is disappointing that the FM has not recognized the distress in the auto sector and not come out with any kind of support or stimulus, said Mr. Wadhera. However, the initiatives for improving liquidity in the market by capital infusion in the Banks should help the industry to some extent.

Furthermore, the industry had expected that a voluntary scrappage policy would be announced which did not happen. There was also no announcement of extension of the 200% weighted deduction for R&D expenses.

In fact, increasing the duties on auto parts and putting an additional cess on petrol and diesel could drive up costs of vehicles, specially where volumes are low and localization in not viable and the overall cost of operations of transport which could further aggravate the slowdown in the industry, cautioned Mr. Wadhera

Sampath Reddy, CIO, Bajaj Allianz Life

Overall, the budget has tried to reach out to various sections of the society and has been a balanced and forward-looking one—promoting ease of living. It has focused on segments like digital economy and infrastructure. Also there has been a focus on promoting Electric Vehicles with large benefits.

For infrastructure, the government intends to provide Rs. 100 lakh crore over the next 5 years, which may help to revive the investment cycle. For the financial sector, PSU bank recap of Rs. 70,000 crore has been provided (which is above expectations), and also announced various measures for the NBFC sector, which may reduce the stress in the sector in the near term. For the digital economy, the government wants to promote digital transactions and cash-less economy, by imposing 2% TDS on cash withdrawals above Rs 1 crore per year from a bank account, no transaction costs or merchant discount rate on various digital modes of payment; and finally also using the digital medium to increase tax compliance.

From a markets perspective, the government’s proposal to increase the minimum free float (public shareholding) limit from 25% to 35%, can lead to an increase in supply of equity paper in the markets. On the positive side, the government has maintained fiscal discipline (announced fiscal deficit target of 3.3% for FY20 vs 3.4% earlier, and plans to reduce it to 3.0% by FY22), announced intent for foreign sovereign government borrowings, which has benefited the bond markets.

George Alexander Muthoot, MD, Muthoot Finance

“Presenting the maiden budget of Modi 2.0 government, Ms. Nirmala Sitharaman has highlighted the government`s thrust to infuse liquidity in the NBFC sector. In line with our expectations, the Debt Redemption Reserve (DRR) for public issues has been exempted. Also, the credit guarantee provided by the government will further open up the liquidity line for fundamentally sound NBFCs.

We welcome the government`s focus on Affordable Housing. The interest deduction on home loans raised by Rs 1.5 lakh to Rs 3.5 lakh and also the housing cost being fixed at Rs. 45 Lakh and below. With RBI now being the regulatory authority for Housing Finance as well, it will lead to easy regulation as all financing sectors would fall under one authority.

In order to accelerate the goal of ‘Housing for All’, the tax holiday provided to developers will boost affordable housing sector.”

ICICI SECURITIES -Mr. Vijay Chandok, MD & CEO – ICICI Securities on Union budget

“This budget gives an intent roadmap for the government to achieve its vision for a $5 trillion economy in the next 5 years. It goes further on the government’s commitment to some of its popular schemes like affordable housing, power for all, and rural road connectivity. Government has made further references on FDI, disinvestment, reforms in taxation, unification of labour code, and up-skilling in this budget, and more announcements on these fronts could be expected in the future.

On the personal tax front, no major changes have been implemented in the income tax rates, save for those in the higher bracket, which is not surprising given the macro constraints on fiscal. I am happy to find Electric Vehicles (EVs) getting recognised as besides being an environmentally better alternative, mass adoption will also reduce our dependence on imported crude, helping our Balance of Payment (BoP) situation.

On markets, we welcome the proposal to increase the minimum public shareholding to 35% from 25% as this would increase the market float over a period of time. Tweaking of the Securities Transaction Tax on certain trades could have been made more broad-based. Government directly borrowing in foreign currency is a macro positive at it helps bring in foreign savings. For bonds and currency it is an unambiguously positive.

Overall, we find this a balanced budget which is trying to fulfil the government’s poll promises and lean on broadening of the tax base to fund for the same. “

AXIS ASSET MANAGEMENT – Mr. Balaji Rao, Managing Partner – Real Estate, Axis Asset Management Company

This budget has been a reflection of the government’s commitment to supporting affordable housing, by reaffirming its goal of “Housing for All” by 2022. The benefits to the sector can be expected to translate into three broad categories:

· For rental housing, the proposed model tenancy law has the potential to revitalise India’s rental market. A new rental law could also aid in liquidating piled-up inventory by encouraging the purchase of a second house, for rental income.

· Commercial real estate may expect a boost as Foreign Portfolio Investors (‘FPI’s) will be permitted to subscribe to listed debt securities issued by REITs – a move that will help develop the much needed depth in the REIT market as well as encourage an inflow of foreign capital.

· With respect to affordable housing, an extremely laudable step by the government has been the alignment of definitions of ‘affordable housing’ under the GST and Income Tax Acts, which will go a long way towards streamlining processes and increase ease of doing business.

Further, in line with the spirit of the last budget, the government has sought to improve affordability by increasing the tax break offered on interest paid on housing loans. Going forward, it is proposed that an additional deduction of Rs 1.50 lakhs be allowed on interest paid on loans for houses of stamp duty value of Rs 45 lakh or less, encouraging the middle and low income segments of the real estate market. The budget also brings a welcome structural change, in proposing to bring Housing Finance Companies (‘HFC’) under the aegis of the RBI

By mooting to release land parcels held by Public Sector Undertakings (‘PSUs’) for affordable housing developments. By way of this budget, the government has affirmed their commitment to economic growth through supporting the working class and strengthening financial systems, which in turn, should conceivably lead to a revival of the real estate markets.

Mihir Vora, Director & Chief Investment Officer of Max Life Insurance

“The Budget for FY 2019-20 was presented against a backdrop of a slowing economy and uncertain global conditions. Looking at the numbers of revenues and expenditure at the broad level as well as for individual items, the FY20 numbers though muted from those in the interim budget, still look optimistic in light of the prevailing economic slowdown. The Revenue growth expected from indirect and direct taxes are 24% and 15% respectively, compared to FY19 actual numbers. This will need good economic growth as well as much better compliance especially for GST collections.

The deficit target has been forecasted at 3.3% and the expected borrowing of Rs. 7 lakh crores is lower than bond market expectations – yields on Government bonds moved down after these announcement. The budget has eschewed the path of populism and the Government has emphasized the path of investment in long-term assets. The announcement to increase Government borrowing from international markets is also a positive move as it reduces the dependence on local debt markets. The amount of Rs. 70,000 cr. for PSU bank capital and divestment target of Rs. 1,05,000 crores are positives– however care needs to be taken to ensure that PSU shares are not sold at any price.

There are not many tweaks on direct taxes, except for the higher tax for individuals earning more than Rs. 2 crores and the tax on buyback by listed companies. The higher tax for high-earners are minor irritants for market sentiment as it increases the effective tax rates for high-income individuals who are also likely to be significant investors. Tax on buybacks reduces the arbitrage between dividend payments and buyback which companies were enjoying. Benefit (deduction) on interest paid on housing loans has been increased by Rs. 1,50,000 which is a positive for the real estate sector.

On the indirect tax front, import duties have been raised on many items, to protect local industry and to promote the ‘Make in India’ theme. The Budget also has clear benefits for electrification of vehicles – benefits on GST as well as tax breaks for buying electric vehicles have been introduced. There is also a roadmap to make India a global hub for manufacture of electric vehicles.

There is an increase on cess on petrol and diesel to make funds available for infrastructure. While this is an additional burden, given the sluggishness on GST collection it was probably the only option available for infrastructure funding.

The proposal to increase minimum public shareholding of listed companies from 25% to 35% will benefit India in the long –term as the free-float increase will lead to a higher weight for India in the international benchmarks. In the short-term, it may create an overhang of stock supply if the timeframes are short-term.

The Budget announcements have many practical steps to improve administrative ease and tax confusion e.g. the clarification on Angel Tax for investment in start-ups, the interchangeability of Aadhar and PAN card, no charges on electronic transactions etc.

Overall, there are no items which may impact the stock markets in a significant way in the long-term. However, since the continuing slowdown in private-sector investment and real estate is slowly impacting consumption also, equity markets were hoping for much more support to these segments to kick-start the recovery process. The correction in the markets is to some extent due to such expectations as the budget benefits, while being in the right direction, were not as substantial as hoped. The bond markets, however, reacted very positively with yields falling on hope of overseas borrowing, restricted Government borrowing plan and no initiatives to boost immediate consumption. “

Amol Naikawadi, JMD, Indus Health Plus

Amol Naikawadi, JMD, Indus Health Plus says, “The budget comes as an indication that it is taking a comprehensive approach in the healthcare and wellness segment, and I think it is aimed in the right direction. With the government’s continuous focus on the Ayushman Bharat scheme will further help in providing extensive medical care and reinforce the commitment to universal healthcare for all citizens. Apart from this, the announcement to boost Artificial Intelligence will strengthen the usage of technology in the field of healthcare and it will intensify the quality in healthcare with accessibility and affordability.”

Siddharth Khinvasara, Co- Founder EarthFood

“The Union Budget 2019-20 is very promising, especially for the agriculture sector. The incubation of the zero budget farming that involves zero credit for agriculture and no use of chemical fertilizers is a welcome move by the government of India. The government’s stance of setting up of 10,000 farm producer organisation by 2022 that will ensure economies of scale for farmers regarding access to inputs and markets will truly enhance the agriculture sector. Additionally, 80 livelihood business incubators and 20 technology business incubators will be set up to produce 75,000 skilled entrepreneurs in agro-rural industries will be a boost for a lot of budding entrepreneurs in the agri space. The governments focus on promoting entrepreneurship is quite evident. The announcement of an exclusive television channel for start-ups that creates a platform for discussing issues affecting the growth and match-making with venture capitalists is a move that is widely applauded by the start-up industry. Clearing the air around the Angel tax issue has been a relief for the startup community. Start-ups not being scrutinized by the IT department regarding the funds raised is a huge revolution for the start-up ecosystem as this would reduce the burden on the budding entrepreneurs. From a business standpoint, 25% corporate tax which is now stretched to companies with turnover of 400 crore is going to really boost the MSMEs and help them grow and survive in the competitive market.”–

Mr.Saurabh Gadgil, CMD, PNG Jewellers; Director and National Vice President, IBJA

The imposition of a hike in customs duty on gold and precious metals will have a dampening effect on the market. However the push for digitalisation and the shift to a cashless economy will strengthen the hand of organised players in the industry

creating transparency and positively impact market sentiment. The introduction of zero tax liability for those in the 5 lakh income bracket will also align with our expansion in Tier-II and Tier-III markets, and augurs well for the industry as a whole.

Adeeb Ahamed, MD, LuLu Financial Group, Tablez and Twenty14 Holdings

The focus on connectivity, infrastructure, media, digital technology coupled with ease of living, ease of doing business and digital literacy in the budget presented by Finance Minister Nirmala Sitharaman echoes the sentiments of the interim budget earlier this year.

The emphasis on improving the lives of the common man, agri-economy along with infrastructure development will enable the economy to become stronger, competitive and transparent. The proposal for skilling India, reforming the education system and promoting women-led entrepreneurship will also enhance the economy to a large extent.
We welcome the government’s decision to provide NRIs seamless access to Indian equities and merge the NRI portfolio investment with foreign investment route. This will allow for further investments in the Indian market by NRIs.

On the agricultural front, the ASPIRE scheme which aims to create technology and livelihood incubation centres will encourage the youth to ideate innovative business ideas in the sector. This will further enhance the Indian agricultural industry and get it ready for the future.

We also welcome the government’s decision to build 17 iconic sites to attract tourists. We are sure that this will give a great impetus to the tourism sector and will revitalize industries like hospitality, services and other related projects in India.