Union Budget 2020: Industry Reactions

Union Budget 2020: Industry Reactions

NEW DELHI [Maha Media]: Finance Minister Nirmala Sitheraman on Saturday presented the most crucial budget of the decade. In her second spree, which proposes to give the Indian economy an impetus to emerge as more vibrant and stronger.

This budget packs a wallop. To understand the excitement, here are the industry reactions from different sectors. 

Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Affordable Housing, ASSOCHAM
Extension of additional tax deduction of Rs 1.5 lac on affordable housing worth upto Rs 45 lac by one year is a step in right direction. Similarly, extension of capital gains on affordable housing by one year is also a welcome step. Also, Government's increased focus on infrastructure sector and connecting  Mumbai-Delhi corridor is the need of the hour, which Hon'ble Finance Minister has tried to address. This will benefit peripheral towns like Sohna (near Gurugram) immensely.

 

Uddhav Poddar, MD, Bhumika Group
Simplifying the tax slab is a good move by the Govt. This would encourage investments. Infrastructure push provided in the budget will also help the development in the country. Real estate across Delhi-Mumbai Industrial Corridor will gain momentum as the government has announced to complete it by 2023. Tier II cities specially Udaipur & Alwar markets where our projects are will see an appreciation in the short term. Govt. has pressed all the right buttons to improve the economy.

 

Parveen Aggarwal, Founder & Chairman Signature Sattva
Today Budget 2020 announcement is focused on the nation’s growth and brings a positive sentiment to the overall economy. The budget seems for all categories and industries, India’s real estate sector appreciate the announcements made for real estate developers as well as homebuyers, as it has touched upon the aspects that are going to boost the GDP.

 

Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI
The budget announcements made by Hon'ble FM seems to be mixed bag from real estate perspective. While,  simplification of income tax regime with reduced rates and no exemptions, extension of measures announced for affordable housing by one more year are some of the positives for the sector.

 

Mohit Goel, CEO, Omaxe
Liquidity and availability of finance is the biggest issue confronting the real sector today. In this context, the assurance given by Hon'ble Finance Minister that NBFCs and HFCs will not face any liquidity crunch will help calm the nerves for sure.  Simplification of tax structure and continuation of some measures announced for affordable housing in the last budget are some other positives. Meanwhile, the government’s proposal for 5 new smart cities in collaboration with states via PPP model is a great move to leverage not just the funding potential of private players but also their experience of making cities livable and sustainable. We hope to participate as and when the details are out.

 

Abhishek Bansal, Executive Director, Pacific Group
Government's announcement of Rs 100 lakh crore for infrastructural development will boost real estate in tier II and tier III cities. There were many measures that we would have loved the government to address but announcement of infrastructure development is the step in right direction. Apart from that impetus of the government on boosting the MSME and SMEs will create employment in these cities leading to the increased demand.

Rajesh Uttamchandani, Director, SyskaandMr. Bishan Jain, Director, Goldmedal Electricals
We welcome the steps taken by the Government in the Union Budget towards boosting electronic manufacturing in the country. The electronic industry has huge potential both in terms of manufacturing in India and job creation and will provide a major impetus for growth. This will further enhance the exports of networked products. Another important step taken is the further push provided by the Government for its smart cities mission. It aims to create 100 cities with state-of-the-art infrastructure that includes intelligent lighting, Wi-Fi access points, leading to enhancement of the quality of life of every citizen while building efficient living spaces for future generations. 

 

Nilesh Shah, MD & CEO, Kotak Mahindra Asset Management Company
The budget is good on intent. However, the key is an efficient execution in a time-bound manner. There are many positives to simplify things and encourage entrepreneurs but again, the key will be executed in a time-bound manner. Intent needs to be converted into implementation.

FRANK D’SOUZA, Partner and leader, Corporate & International Tax, PwC India
“Abolishment of DDT will make equity investment more attractive and is overall a very welcome move.”

 

Rohit Kapoor, CEO, OYO, India South Asia
“It is heartening to see a budget that focuses on improving standards of living as well as economic development.  A grant of INR 2500 crores for tourism promotion and the development of 5 iconic archeological sites and museums in the country are bright indicators of the renewed focus of the government on the travel and tourism industry.”

 

Dhirendra Mahyavanshi, Co-Founder, Turtlemint
The new budget offers tremendous tax benefits to the average taxpayer helping him lower his tax liability considerably. Moreover, with the different social welfare schemes promised by the Finance Minister, the outlook looks positive. The insurance sector is also expected to see major impacts with the disinvestment in LIC. It would bring in fresh capital for the company helping it to make strategic future plans. 

 

Amit Modi, Director ABA CORP and President (Elect) CREDAI Western UP
One of major welcome steps in this Budget was that earlier any taxing income from capital gains in respect of transactions in Real Estate if the consideration value is less than the circle rate by more than 5% the difference was counted as income, both in the hands of purchase and seller. Increasing the limit to 10% now will definitely minimize hardship in the sector and provide relief for both the developer and buyers. Also extending the date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 year will encourage more and more developers to build affordable housing projects across the country, and contributes towards Prime Ministers Housing for All 2022 mission. 

 

Harinder Singh, Chairman and Founder Realistic Realtors
In the budget, Hon'ble FM has undertaken a right balancing act by giving some tax benefits to individuals by lowering tax rates amid simplification, incurring higher capital expenditure and yet containing fiscal deficit at 3.8% is commendable.From real estate perspective the sector specially  Residential segment , industry had high expectation and nothing at all has been announced is a bit of disappointment and I believe getting demand back for homes will boost the entire economy, when you buy home there is consumption of cement, steel, wood, paint, furniture, fabric etc almost entire eco system of products and services , just simplification of tax regime will enthuse more individuals to buy homes. The announcement of developing 5 new smart cities under PPP mode should agave some positive impact and  help the cause of real estate sector in long term.

 

Nevil Patel, Managing Director, Orpat Group 
"The Union Budget 2020 is out and there are some useful propositions of new schemes to generate and boost employment in the country. Make In India is the need of the hour and import of cheap Chinese goods in India has brought downturn in the economy. Government's move to increase customs duty on 300 items and the proposition of a new scheme for promoting the manufacturing of electronic item in the country are the steps in right direction. 

Manish Sharma (Partner & Leader - Transport & Logistics), PwC India
The FM's announcement on the  National Infrastructure Pipeline, NSDC program to help skill development in the infrastructure sector, PPP in passenger trains and making MSMEs competitive have been in discussion for some time and happy to note that the Budget has formalised this.  Also, the project preparation facility is a good initiative and should focus on projects across central, state and local body projects. Additionally, Krishi UDAAN and Kisan Rail are good initiatives which can help plug gaps from farm to market for agri produce.


Satish Gupta, Executive Director, JK Technosoft
“In the era of globalization, the Union Budget 2020 focused deeply on ‘Aspirational India’ and ‘Digital Revolution’ with emphasis on evolving the economy digitally by skilling India and increasing job opportunities in the budding as well as cross-cutting fields of Data Analytics, Artificial Intelligence (AI) Robotics and Machine Learning (ML). The Government also announced building of data centre parks throughout the country along with allocation of INR 8,000 crore to set up for the National Mission on Quantum Computing and Technology. 

 

Amarsh Chaturvedi, Co-Founder & Director, Transerve Technologies
“The Government’s vision of ‘Vibrant India’ bought in immense focus on ‘Digital Governance’ that is likely to bring in a paradigm shift in the overall economy. We are delighted to hear that the Government ULB’s (Urban Local Bodies) internship opportunities for civic-welfare programs will help in increasing job opportunities and in turn Skilling the Indian Youth."

 

Ashwani Rawat, Co-Founder & Director, Transerve Technologies
“We commend the Government’s announcement of proposed budget allocation in setting up 5 new Smart Cities under PPP model and further extend our support to this initiative. While the Government proposed to expand the horizon of ongoing ‘Swachh Bharat Mission’ in order to undertake sustainable solid waste management harnessing latest technology in every village, we further hope that this initiative highlighted by the FM would be extended to urban areas as well.”

 

Rajat Goel, JMD MRG World
The Union Budget 2020-2021 has predominantly focussed on revitalizing the rural economy which is a good move. As per last year measures surrounding “affordable Housing” was the mainstay from the perspective of the real estate industry. Extension of additional tax deduction of Rs 1.5 lac on affordable housing worth up to Rs 45 lac by one year is a step in the right direction. However, considering the overall health of the real estate sector, it would have helped if the Government would have given little more incentive to both home buyers and developers.

 

Yash Miglani, MD Migsun Group
We are happy that the focus of the government is the overall development of the economy. Budget has touched upon the aspects that are going to boost the GDP including infrastructure spend, rural economy, income tax relief, Rs. 4,400 crore allocated for cities to ensure clean air, and tax holiday on loan sanction for affordable housing. We are confident that these steps will improve the sales figure as people are getting a complete package from the government as they will good and infrastructure which will improve their lifestyle. Developers and buyers will benefit from the extension of withholding tax, which will mean that in some cases a property can be sold at rates lower than the circle rate prevalent in the area.

 

Manish Aggarwal, Partner and Head, ‘Infrastructure M&A, and Special Situations Group, KPMG in India
Budget 2020 reiterates Government’s commitment to infrastructure investments. Limited fiscal space of Government meant muted allocation growth from budget, however, focus is on mobilizing third party capital - equity infusion of INR 22,000 Crore in IIFCL and a proposed NIIF floated NBFC, exemption to sovereign wealth funds from capital gains from infra investments, removal of Dividend Distribution Tax and a lower tax scheme for power generation companies

 

KE Ranganathan, Managing Director, Roca Bathroom Products 
A well thought out Budget giving due importance to all 3 focus themes - aspirational India, economic development and caring society.  As a right step the ‘Spending’ by the Government has been stepped up substantially to boost demand for various sectors.  Making more money available to people at home by reducingincome tax rates is a welcomed and should spurmore consumption. A lot of focus hasbeen given to agriculture witha simple aim to double earnings of farmer is laudable. 

 

Gaurav Bahl, Co-Founder & CEO, KOOLCHAS, a QSR chain
“India has one of the strongest startup ecosystems in which entrepreneurship takes the core position. Hence, one of the measures taken in the new Union 2020 budget to increase the turnover limits for startups from 25 crore to 100 crore shall be instrumental to create employment opportunities. The cold storage initiative taken by the Government is another great move which will reduce the cost of manufacturing food, and will further boost the overall income for us. The new taxpayer charter is great relief as it would ensure harassment-free taxes, and will mark a breakthrough in the startup ecosystem with more transparency and efficiency. The Government’s firm agenda of stable business, building of advisory cells and investment clearance will add to the advantage of expanding new businesses with the budget.”

 

Vinay Jain, Founder and CEO, Grafdoer
"We appreciate the Government's focus on sanitation industry under Swachh Bharat Abhiyan campaign committing to Open Defecation Free Country by allocating INR 12,300 crore. This is an exceptional move towards the development of our nation. The Government’s emphasis on supporting the MSME sector by providing employment opportunities and providing  a subordinate debt by banks is a much appreciated move. We are positive about the Government’s focus on boosting the domestic manufacturing sector, as that will further boost Made In India. Also, the reduction in the Income Tax Slab has given a relief to the middle class sector of our Society, as it will increase their buying power and boost the market.”

 

Sachin Mittal CEO & Founder, Loanwalle.com
“In the recently proposed Union Budget 2020, the Government’s focus on entrepreneurship for startup businesses is commendable, as that will generate more job opportunities in our country. Speaking on the financial side, the Government emphasised on more liquidity flow within NBFCs which will help boost the current slopping NBFC and private lending sector. Further, it will allow increased lending opportunities with greater ease. We applaud the new announcement by the FM where NBFCs having turnover of INR 100 crore will now be eligible for SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act). While earlier, only companies with a turnover of INR 500 crore were eligible to recover their debts by selling properties of the defaulters, going forward, the new Budget announcement will allow smaller companies as well to recover their debts. This will further offer more capital flow in the market.”

 

Ayyushman Mehta, Managing Director, Mavox Helmets - Sandhar Amkin Industries (P) Ltd
“The second budget by Finance Minister, Nirmala Sitharaman catered mostly to the demand side of the economy. By putting in more money in the hands of the individuals, Hon’ble Finance Minister’s take on abolishing the Dividend Distribution Tax (DDT) is surely a tax relief for the middle class and lower middle-class segments, while on the corporate side it is highly positive for all consumption-linked Auto sector companies, and the overall market. The simplification of the tax regime is sure to improve public sentiment and boost the economy. This budget is likely to revive our country’s economic growth and create new job opportunities.” 

 

Kuldeep Chaudhary CEO & Co-Founder, ADOHM AI-Marketing & Sales platform
“With emphasis on evolving the economy digitally, the Union Budget 2020-2021 focus on Technological Development by skilling India in cross-cutting fields such as Artificial Intelligence (AI) was a commendable move. Moreover, thanks to Finance Minister Nirmala Sitharaman's announcement on  promoting entrepreneurship through startup businesses, as that will create more job opportunities in the country. Many Indian startups can now breathe a sigh of relief as the turnover limits has increased to INR 100 crore from INR 25 crore. This initiative will provide relief on the tax burden to employees eligible for employee stock options (ESOPs).”

 

Arvind Singhatiya, LegalKart (Founder and CEO)
"We feel that in 2020 the focus will be on the consumer market—the supply of legal services directly to individuals and businesses will be stronger and the concept of ‘Marketplaces’ will grow. Artificial intelligence in finding and engaging a lawyer or legal firm will evolve to solve the difficulty of consumers often. Being a Startup company we are also expecting a relaxation in the taxation and more funding for startup incubators."  

Satyen Kothari, Founder & CEO, Cube Wealth (ex-co-founder Citrus Payments)
"The esop policy is a good acknowledgement of how incentives in private companies work. However the limitations need to be examined to understand whether these work for younger startups in a practical manner. Most employees would exercise options at time if quitting or when the actual sale happens. In the former case this new policy is still imposing taxes, it seems. The devil is in the details."

 

Kaustubh Sonalkar, Essar Foundation
“One of the Union Budget’s highlights was the focus on ‘Building a Caring Society’, which is a significant step towards gender sensitivity. The laudable decision, toappoint a task force that will present its recommendations regarding the issue about the optimum age of a girl to enter into motherhood,roots for her empowerment. Higher education, better health and increased employment opportunities not only makes her a force to reckon with, but also takes gender inclusivity to rural India. The gender-responsive budget should bolster women’s empowerment, and thereby lead to a more inclusive and powerful India Inc.”

 

Bhavesh Gupta, CEO, Clix Capital
“Reduced NBFC eligibility for SARFAESI Act is a well thought move that will help the sector to grow. Allowing NBFCs to be a part of TReDS  will improve MSME access to credit, coupled with reduction in personal income tax slabs should spur consumption leading to growth.”

 

Satyen Kothari, Founder & CEO, Cube Wealth (ex-co-founder Citrus Payments)
"The esop policy is a good acknowledgement of how incentives in private companies work. However the limitations need to be examined to understand whether these work for younger startups in a practical manner. Most employees would exercise options at time if quitting or when the actual sale happens. In the former case this new policy is still imposing taxes, it seems. The devil is in the details."

 

KNM Rao, Founder and CEO, Quick Ride
“The Finance Minister’s commitment to kick-start the Paris Agreement Action plan from January 1st 2021 and the proposal to allocate 4400 Crore to implement the Clean Air programme is a step in the right direction. Last year the Government allocated 460 crores for pollution measures including the National Clean Air Programme but with the current allocation, we hope the State and Central government will incentivize shared mobility concepts like carpooling, which reduces the number of vehicles on the road. 

 

Saumil Shah, Partner, Dhruva Advisors, on changes to DDT regime
“Dividend received from foreign subsidiaries was taxed at 15% but available as a deduction from the onward distribution of dividend.  This benefit has been taken away and the dividend from foreign subsidiaries will continue to be taxed at 15%, but onward distribution will further be taxed in the hands of the recipient shareholders.Such dividend will further be taxed at 25.17% in the hands of corporate shareholders and applicable tax slabs in case of individual shareholders.”

 

Amar Ambani, Senior President and Head of Research, Institutional Equities, YES Securities
“The market saw a sharp sell-off during Budget, as expectations were sky-high. The market expected an overhaul of personal income tax slabs, whereas we expected only a minor tweak, in a year that has seen flat tax revenue growth. Market participants possibly also expected more measures to revive economic growth and ignored the containment of fiscal deficit in FY21 to only 3.5%. We are quite satisfied with the budget math however.”

 

Ravindra Agrawal, MD & Founder, KisanKraft Limited
"Budget 2020 is a mixed bag for agriculture sector. While focus on farmer upliftment through 16-point action plan, increased funding for irrigation and 100 water-stressed district is a welcome step, farmers would be better served by improving electricity distribution infrastructure rather than expensive solar water-pumps. Continued support to women farmers SHG through Dhaanya Lakshmi Yojna will be good for rural economy. 

 

Amit Raheja,CMD Wealth Clinic
Though real estate has not got anything directly from this Budget but there are announcements that will indirectly help the sector. The direct benefit will come from the affordable housing tax holiday which has been extended to March 2021 and extension of withholding tax. By extending withholding tax, the developers and buyers will benefit if a developer sells his product at a rate lesser than the circle rate. This happens when there is a slowdown in the market and as an urgency measure someone sells it at a lower price, the transaction in these cases used to become questionable on the pretext that the rest of the amount has been paid in cash. 

 

Ashish Bhutani, MD Bhutani Infra
Real estate sector was expecting Single Window clearance and industry status. These two demands are very important for the smooth functioning of the sector as a whole. However, there many announcements in the Budget that are going to help the real estate sector to grow. Focus on infrastructure and economic growth in this budget will lead to more activity at the commercial segment as the demand for offices will grow.

 

Vikas Bhasin,CMD Saya Homes
Many fence sitting buyers are expected to take a call on real estate investment as the Budget has extended additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021. This extension should have been provided for non-affordable housing segment also as housing prices in metros are high. 

 

Vaibhav Jain, CMD Rise
The Hon'ble Finance Minister decided to help NBFCs n HFCs that they do not face any liquidity crunch reducing the income tax burden on individuals. The multiple factors are responsible for the current state of Indian residential segment. "Demand-supply mismatch coupled with unscrupulous activities of some developers  were the foremost reasons. 

 

Sagar Saxena, Project Head Spectrum Metro
The major announcement government has decided to make of Rs 100 lakh crore for infrastructural development that will support real estate in small cities like Tier II and Tier  III. We also welcome the thurst on the infrastructure sector outlined in this budget. Considering the Budget has also extended the additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021, buyers have now had more reasons to invest in property. 

 

Pankaj Bansal, Director, M3M Group
The abolishment of the dividend distribution tax was required to protect the shareholder’s interest. It provides a level playing field to Indian Companies as a dividend will now be taxed at the hand of shareholders, a taxation norm common in many countries. This will further attract foreign investment and provide a boost to the capital market in India.  

 

Paramdeep Singh, CEO FieldAssist. 
FeildAssist is India's leading SaaS-based sales automation platform and catalyzing empowerment of on-field sales teams and power smarter sales decisions with the aim of spurring growth both in the short and long term. Serving over 45,000 users along with 103,200 SKUs, the company has successfully associated with more than 350 leading FMCG brands covering 4,500,000 outlets.

 

Manish Rathi, CEO and Co-founder, IntrCity by RailYatri
“We welcome the focus and thrust on road transport with 1.7 trillion INR allocated towards the transport sector. The accelerated development of highways and Delhi - Mumbai expressway completion by 2023 will enable the growth of intercity bus travel. We see a wider industry focus and excitement in intercity transport due to the steps taken in Budget 2020. 

Tapan Ray, MD & Group CEO, GIFT City
“We welcome the announcement in today’s Union Budget on setting up of an International Bullion Exchange at GIFT IFSC. This will lead to better price discovery of gold, create more jobs and further enhance India’s position in the bullion market.

 

Chander Shekhar Sibal,Senior Vice President, Fujifilm Indi
“We congratulate the government on presenting the Union Budget 2020 for the common man and it’s encouraging to see that the government has taken the lead to deliver on its promise of excellence in healthcare. The government’s “TB Harega, Desh Jeetega" initiative to eradicate tuberculosis by 2025 is a significant step towards building a healthy Society. India being the highest recorder of TB cases in the world makes it imperative for us to understand the high risk of catching the disease. 

 

Gururaj Bhat, CFO, Karle Group 
“We welcome the Budget 2020’s proposed tax relief for buyers and sellers of property by allowing it to be valued at up to 10% which is presently at 5% below guidance value/circle rates for calculation of notional capital gains and tax on it. A further positive can be seen in extension of the deadline by one year for obtaining the approval by the developers in the affordable housing segment for Tax holiday benefits. Similarly to get the exemption of interest of 1.50 lakhs on the borrowed loan by the home buyer ,the deadline for loan sanction has been extended until 31.3.2021 which will in turn help the industry significantly.

 

Ashok Mohanani, Chairman EKTA World and Vice President NAREDCO Maharashtra
The budget focused more on Infrastructure upgrade of Chennai-Bengaluru and Delhi-Mumbai Expressway estimated to be completed by 2023. This will not only raise the skill development in the infrastructure sector but will also open new markets for builders along with residents. 
Proposing the development of 100 new airports to be built by 2024 under Uddan scheme will bring in NRIs to India and increase the investment in the country. To bring in indirect relief to the real estate sector proposal of spending Rs 100 lakh cr on infrastructure development in the span of five years is the biggest news for the sector keeping in mind the current state of huge crash crunch in the economy. With this, the sector will be impacted towards expansion but the benefits will be observed in the later years. 

 

Dinesh Kanabar, CEO, Dhruva Advisors LLP 
Having a Charter for Tax Payers is welcome and having it enshrined in the Act, even more welcome. That said, it needs to be implemented in spirit and for that changes in mind-set need to be made at the ground level.

 

Parag Satpute. Managing Director at Bridgestone India 
The Union Budget is a forward-looking budget and the government’s commitment to boost income, increase purchasing power and towards accelerated development of highways is a welcome step for the automotive industry. I am pleased with the thrust on sustainability, an area dear to Bridgestone, the focus on climate change and Rs 4,400 crore allocation for clean air.

 

Rajesh Ramakrishnan, Managing Director, Perfetti Van Melle India
The income tax reduction could be seen as an indirect measure to increase the purchasing power of the lower and middle-income groups. The trickle downflow of the same into the FMCG sector is something to be hoped for. The Union Budget, however, leaves the entire sector wanting more in terms of the revival of consumption.

 

Supriya Paul, Co-founder, Josh Talks
The Union Budget 2020 presented initiatives that would give both the startup sector and the skilling ecosystem a boost. The government’s push to infuse INR 3000 crores for skill development and mainstreaming industry level skill training in the areas of big data, AI and Virtual reality would bring the Indian skill competencies up to the league of training in countries like China and the USA. Online degree programmes for the underprivileged students would also extend the reach of formal education to the far-flung corners of the country. A deeper understanding of the direct implications of the various initiatives can be ascertained once the new Education Policy is unveiled. 

 

Padmaja Ruparel, Founding Partner, IAN Fund
The budget 2020 represents a big win for the country’s startup ecosystem. We are pleased to see that the Government has paid heed to our concerns and rolled out the reforms like 5 year tax holiday for ESOP, Tax exemption for startups with turnover

 

Saurabh Srivastava, Chairman, Indian Angel Network
The FM has delivered a fantastic budget for startups. The measures announced on ESOPs, taxation and seed fund will infuse tremendous energy in the ecosystem. The clear message on no-undue harassment will provide renewed confidence to entrepreneurs to create new innovative startups which create jobs and wealth in India and strive to take over the world. The startup ecosystem is extremely grateful to the PM and the FM who have taken the trouble to listen to startups and address some of their very serious concerns. And to DPIIT for piloting our cause so well.

 

Asutosh Mishra - Head of Institutional Equity, Ashika Group
Govt proposed to expand Natural gas grid infrastructure from current 16,200km to 27,000km. It is also planning to take steps for transparent price discovery for natural gas. A step is beneficial for IGL, GGL, GAIL, AGL, MGL.Shakti Pumps and Roto pumps can be a good beneficiary of governments initiative to fund 20L farmers for installing solar pumps.

 

Ameve Sharma, Founder, Kapiva
The budget has rightly emphasised on addressing the issue of growing non-communicable diseases which is are essentially lifestyle diseases. In addition, as a part of the holistic vision of healthcare, the capital push through PM Jan Arogya Yojana will create awareness on health and wellness across India which will have a positive rub-off on healthcare products and service providers. A proposal like investment clearance cell will create a vibrant start-up eco-system in the country and make India a global entrepreneurial hub.

 

Deepak Ananth, CEO &Co Founder ScoutMyTrip
The setting up of an investment cell is very interesting.  Getting access to the Fund of Funds has been something most startups are looking forward to. With the investment cell, this is further augmented by getting advice on setting up your business and also investment options available to startups. 

 

Vivek Chandy, Joint Managing Partner, J. Sagar Associates
Regarding the sop for affordable housing, I do not believe that extending the period by one year will give the RE industry the stimulus that it was seeking or that it probably deserved. The residential real estate developers were hoping for much more than merely extending existing benefits for affordable housing. Consumption across cities is low and many developers are facing insolvency. Had there been moves to directly help developers or lenders in the sector it would have been welcome.

 

S.R. Patnaik, Partner, Cyril Amarchand Mangaldas 
The announcement to have a legal framework to prevent tax-related harassment is truly welcome and shows the government's commitment. It will go a long way in enforcing will business and investor trust and confidence.

 

Shrey Kumar, Co-founder, Aadvik Foods
The focus of Government on entrepreneurship and agriculture sector in this year's budget will boost the confidence of a lot of entrepreneurs in the agriculture segment. The setting up of cold chain infrastructure in the country is much needed and it is good to hear that govt is planning to improve the same. FM's focus on easing out the investment-related problems to start-ups such as pre-investment advisory will also be really helpful to young entrepreneurs. Overall the budget looks positive towards start-ups and improving the logistics and infrastructure of the agriculture segment. Also, we appreciate the government's move and it would be great to see the milk production capacity doubling from 53.5 MT to 108 MT by 2025.

 

Shubham Maheshwari, CEO and MD at Being Chef 
Union Finance Minister Nirmala Sitharaman in her Budget 2020-2021 speech addressed the startup ecosystem as the "strength of India," and "job creators", and announced a bunch of measures to ensure ease of doing business for Indian startups. We are glad that this budget has included a seed fund to support early-stage startups and an investment clearance and advisory cell for entrepreneurs. ESOP tax relaxation will help a lot in team building. Allocation of Rs 6,000 crore under the Bharat Net Programme with a focus on digital connectivity across India is also an appreciable move. We hope that these steps will take Indian startup ecosystem to new heights.

 

Mr Akshay Singhal, Founder, Log 9 Materials 
At the outset, budget looks to balance aspirations and shortcomings. For Deeptech entrepreneurs like us, budget presents a clear national intent towards greener environment and renewable energy which is commendable and much appreciated.

 

Mr. Shachindra Nath, Executive Chairman at UGRO Capital
"The proposal to allow deposit insurance and credit guarantee corporation to increase deposit insurance coverage to Rs. 5 lakh per depositor compared to the present Rs. 1 lakh is extremely significant, as it will increase trust in banking. The reduction in the NBFC Eligibility for SARFAESI Act to Rs 100 crore from Rs 500 crore AUM will boost the confidence among small NBFCs and reduce the cost of borrowing for MSMEs. The proposal to allow NBFCs to extend invoice financing to MSMEs will boost productivity in the sector."

 

Abhishek Ganguly, Managing Director, Puma
“India currently does not have the infrastructure, capability, skillset and technology to manufacture higher end footwear. Therefore, increasing customs duty of footwear from 25-35% may not have a significant impact on imports. Presently, at the entry price, we anyway manufacture 30% of our footwear in India, and we will continue to do so. The government should proactively promote and enable footwear factories which can handle more technical manufacturing. This is a huge opportunity as India can definitely take share from China and far East – not only for domestic, but also international consumption.”

 

Sandeep Shah, Managing Partner, NA Shah Associates LLP onInd AS for Insurance sector
“Today FM announced that Government will sell a part of its stake in Life Insurance Corporation of India through an Initial Public Offering (IPO)  and would be good opportunity for investors to have stake in such institution. To align the global accounting practices in Insurance sector, it was initially proposed to implement / adopt International Accounting Standards in India effective from 1st April 2020. However considering the intricacies of this industry, IRDA has deferred the effective date for implementation of Ind AS and has linked the date to finalization of new Insurance standard viz IFRS 17 by International Accounting Standards Board. Currently as per exposure draft of IFRS 17, the effective date of standard is 1st January 2022. This transition would result into significant change the way financial information is presented by Insurance sector.

 

Dr. Keshab Panda CEO&MD, L&T Technology Services
“From a perspective of the engineering and technology services industry that thrives on innovation, the government’s move to re-revitalize the IP filing and protection process is a welcome step. Additionally the thrust on quantum computing as a key focus promises to further consolidate India’s position in the global digital transformation landscape. The announcement of proposal to set-up Data Centers is also a step in the right direction in terms of acknowledging the importance of data and data analytics.

 

Vinu Cheriyan, CFO & Director Operations, Sennheiser India
For 2020-2021 Union budget, the government has made some notable announcements that are aimed towards strengthening the industry and commerce sector. It also focuses on enhancing growth of youth with skill development. The allocation of Rs 27,300 crore for development of industry and commerce will help in the overall growth of the country. Government’s plans to announced a new scheme to encourage domestic manufacturing of mobile phones, electronics and semiconductor boards, to expand rural development using modern digital technologies to generate massive employment. 

 

B Prasanna, Group Head - Global Markets, Sales, Trading & Research, ICICI Bank 
The first Budget of the new decade appropriately focused on holistic growth objectives by resorting to the escape clause permitted by the FRBM act even as the commitment to consolidation remains in place. The budget sets out goals for boosting income in agriculture and allied sectors, boost export and commerce, concentrate on physical infrastructure and promote much needed focus on the country’s human capital through health, education and skilling

 

Krishna Karwa, Senior Research Analyst,iFAST Financial India Pvt Ltd
"Overall, the budget fails to meet expectations in the backdrop of weakening macroeconomic conditions. There seems to be no meaningful stimulus to private sector infrastructure, manufacturing, real estate and rural spending. Issues pertaining to unemployment and weakness in the financial system have not been addressed satisfactorily either.

 

Sandipan Mitra, CEO and Co-founder HungerBox, an institutional B2B2C foodtech platform
"India has embraced the shared economy and welcomed the digital revolution with open arms. The Union Budget provides some important benefits for emerging entrepreneurs. With the corporate tax being slashed to 22%, companies can now have a little more room to breathe and benefit from the assistance in funding through the investment clearance cell that has been proposed."
 

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