The Union Budget 2022 had quite a bit takeaways for the Indian startup ecosystem. Here’s what Mr. Gautam Dhar, Managing Director & CEO, Plantas (India's first & the only complete range of EcoCert Cosmos V3.1 certified organic beauty brand) has to say on Budget 2022 presented by Finance Minister Nirmala Sitharaman.

“Global supply chains have faced considerable hurdles as a result of the COVID-19 epidemic. Multiple countrywide lockdowns continue to stifle, if not completely halt, the movement of raw materials and finished goods, causing manufacturers to suffer. Local startups have worked hard to stay up with the competition. We are relieved to see that the term of incorporation for startups has been extended by a year to 2023, allowing us to take advantage of tax benefits. As more Indians engage in Atmanirbhar bharat schemes, promoting drone startups and allowing companies an extension to set up production units till 2024 would undoubtedly boost the industry. The allocation of 60% of the R&D funding to Make In India reemphasizes the importance of connecting the growth of new entrepreneurs with the expanding Indian economy” Mr. Gautam Dhar, Managing Director & CEO, Plantas

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New Delhi, July 6 (IANS) This budget has managed to strike a right balance between boosting economic growth and maintaining fiscal discipline. The major focus is on improving infrastructure for both rural and urban India, providing electricity to states at affordable rates, bolstering MSME growth, relaxing FDI norms and reviving private investment.

The government has provided support to the banking and the Non-Banking Finance companies (NBFCs) sector in the form of allocation of funds, tax sops and allowed FPIs and FIIs to invest in debt papers of NBFCs. It is also backing NBFCs by incentivising PSBs for buying NBFC assets to provide liquidity with one-time six-month partial credit guarantee for the first loss of up to 10 per cent. This will result into higher credit growth.

The budget has also proposed income tax benefits to consumers such as additional Rs 1.5 lakh deduction in income tax on home loans under affordable housing and interest subvention of up to Rs 2.5 lakh on buying electric vehicles. This, along with simplified tax administration, will surely boost both urban and rural consumption, which, in turn, should fuel growth in the SME and MSME space.

In a major step aimed at easing the ongoing stress on India's non-banking finance companies (NBFCs), the government will lend a helping hand to top-rated entities.

The Union Budget has proposed that foreign institutional investors and foreign portfolio investors will be allowed to invest in debt securities by the shadow banks. This will allow the NBFC sector, facing a liquidity crunch, to raise more funds. The proposal to let FIIs and FPIs to invest in debt securities issued by NBFC would provide a much-needed boost of capital to a sector now starving of capital; an important prop to several sectors, particularly, real estate and automobile, which are reeling for lack of finance to purchasers/buyers.

This budget is the reflection of the strength and resilience of Indian economy. The results of digitization of taxation, GST and other structural policy decisions are showing in the macro indicators with widening tax base, higher tax collections, low inflation and good growth. It is good that government is passing these benefits in the form of tax cuts and direct benefit transfers to the common man. It will surely boost both urban and rural consumption which in-turn should fuel growth in the SME and MSME space.

(Rajiv Rattan is Chairman, Rattan India group, which is engaged in the power and finance sector. The views expressed are personal)

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By Anil Kumar Chaudhary

New Delhi, July 6 (IANS) The budget compliments the expectation of the steel and other related industries. SAIL is completely geared up to cater to every requirement of the government's roadmap to reform, perform and transform India. SAIL is committed to fulfill the expectations of Indians as it has been doing for the last sixty years.

For a country headed towards $5 trillion economy in 5 years, the budget is very structured for moving towards that target. Clear emphasis has been laid on the infrastructure development along with massive push to every connectivity avenue including industrial corridors, dedicated freight corridors, Bharatmala, Sagarmala, UDAN and the PMGSY.

The government's commitment in the budget to provide electricity, housing for all under Pradhan Mantri Awas Yojana - Gramin (Rural), availability of water and LPG connections, focus on development of urban housing under Pradhan Mantri Awas Yojana - Shahri (Rural), etc. are all very positive and hold excellent promise for the steel industry.

The budget also proposes investment of Rs 50 lakh crore in augmenting railways infrastructure by 2030 as well as substantial investment for roadways upgradation and connectivity. The government's emphasis on investing Rs 20 lakh crore every year in infrastructure development will certainly help in increasing the steel consumption and will facilitate the growth of domestic steel industry.

(Anil Kumar Chaudhary is Chairman, SAIL. The views expressed is personal)

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By Ahammed M.P.

(The writer is Chairman, Malabar Gold & Diamonds. The views expressed are personal)

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By Bhavish Aggarwal

The government's focus on electric mobility and electric vehicles (EV) in the Budget 2019 is inspiring. Lower GST rate, interest subvention for EV loans and the commitment of Rs 10,000 crore towards FAME 2 are encouraging.

This further reinforces Ola's mission to build electric mobility for India and the world and contribute toward making our nation, the global hub for innovation in this space.

The various start-up-friendly initiatives announced as part of the Budget are important for this fast growing ecosystem and will encourage India's youth to create value, wealth and livelihood opportunities for millions.

The thrust on digital payments will further accelerate the nation towards a transparent and cashless economy.

(The writer is co-founder and CEO of Ola. The views expressed are personal)

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By Anil Kumar Chaudhary

The Union Budget compliments the expectation of steel industry and other related industries. SAIL is completely geared up to cater to every requirement of governments roadmap to reform, perform and transform India. Steel Authority of India Limited (SAIL) is committed to fulfil the expectations of Indians as it has been doing for the last sixty years.

For a country headed towards $5 trillion economy in next five years, the budget is very structured for moving towards that target. Clear emphasis has been laid on the infrastructure development along with massive push to every connectivity avenue including industrial corridors, dedicated freight corridors, Bharatmala, Sagarmala, UDAN and PMGSY.

The government's commitment in budget to provide electricity, housing for all under Pradhan Mantri Awas Yojana - Gramin, availability of water and LPG connections, focus on development of urban housing under Pradhan Mantri Awas Yojana - Shahari, etc. are all very positive and hold excellent promise for the steel industry.

The budget also proposes investment of Rs 50 lakh crore in augmenting Railways infrastructure by 2030 as well as substantial investment for roadways upgradation and connectivity.

The government's emphasis on investing Rs 20 lakh crore every year in infrastructure development will certainly help in increasing the steel consumption and will facilitate the growth of domestic steel industry.

(The author is Chairman, SAIL. The views are personal)

-IANS
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2019-07-06-13:14:08

The post Budget will facilitate steel industry growth appeared first on Social News XYZ.

(The author is Chief Investment Officer, Aviva Life Insurance. The views expressed are personal)

-IANS
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( 411 Words)

2019-07-06-13:04:05

The post Budget maintains thrust on stressed sectors appeared first on Social News XYZ.

Hyderabad, July 5 (IANS) Industry in Telangana on Friday termed the Union Budget 2019-20 as balanced and pro-growth.

D. Raju, Chairman, Confederation of Indian Industry, Telangana, said the Budget addresses the issues of both banking and NBFC sector.

He said reducing corporate tax to 25 per cent on companies with turnover up to Rs 400 crore is a positive step. He also hailed the initiatives for the MSME sector.

"The manufacturing sector has also been provided thrust with announcements for setting up of mega plants in areas such semiconductors, laptops, solar products etc," he said.

The CII feels that the Budget laid focus on clean India by encouraging the purchase of electric vehicles by lowering GST rates from 12 to 5% and additional deduction of Rs. 1.5 lakh on interest paid on loans for purchasing electric vehicles.

He also termed announcement of national education policy with focus on research, innovation and skill development a positive step.

Krishna Bodanapu, Vice Chairman CII Telangana and Managing Director & CEO, Cyient Ltd, said that at a macro level 8 per cent economic growth is possible. He believes that easing FDI rules and investments in various sectors will stimulate growth.

"The Budget announcement was a balancing act ensuring growth and combating inflation," he said.

Anil Epur, former Chairman, CII Southern Region said that the budget spoke on adding more value to the agri sector with announcement of 10,000 new FPO's which is remarkable. Focus has also been provided to the fisheries sector by announcements of fisheries schemes to augment fish production. However, the Budget did not mention anything on the R&D in agriculture.

Mahesh Desai, Managing Director, Meera & Ceiko Pumps Ltd mentioned that the Budget was a welcome step for MSME Sector with focus on credit availability, establishing mechanism for delayed payment from PSUs and alternative sources of funding.

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New Delhi, July 5 (IANS) Finance Minister Nirmala Sitharaman's stress for public private partnerships to unleash faster development in the Indian Railways and the national transporter's need for Rs 50 lakh crore investment from 2018 to 2030 in her maiden Budget has evoked a positive reaction from stake-holders.

Alstom's India and South Asia Managing Director Alain Spohr said: "The Finance Minister has taken a holistic approach to prime up India's growth engine. This budget lays down a clear path India needs to take to become a $5 trillion economy."

Noting that connectivity through sustainable mobility is rightly identified as a great enabler to kickstart a virtuous cycle, he said: "A nation that moves faster will grow faster. The emphasis on decongesting rail network, expanding metro lines, upgrading roads and linking water routes will greatly support faster and safer movement of freight and people."

He said that the Rs 100 crore fund to develop infrastructure over the next five years will also create avenues for job creation and bridge the urban-rural divide.

He also said the "forward-looking" budget "provides an opportunity for infra and manufacturing companies to align with government's Make In India programme to establish India as their manufacturing hub not just for domestic but also for global projects".

Manish Rathi, CEO and Co-Founder of RailYatri.in, said that the proposed budget focuses on some very important factors when it comes to transportation.

"The government's investment in road infrastructure will prove to be advantageous in the long run, especially for the transportation industry. The enhanced private participation in Indian Railways and metro connectivity will give further impetus towards creating an integrated intercity connectivity in India," he said.

"We look forward to the simplification of regulatory framework regarding permits and licenses for intercity transportation in India allowing us to make deeper investments in the sector. This will help our SME partners i.e. bus operators by allowing them to ride upon the infrastructure enhancements," he added.

Former Railway Board Member Vijay Dutt described the budget as "very positive for the railways".

Noting that the "problem with railways is that the fares are subsidised, whereas there is no subsidy for railways", he said fund infusion is very important.

"Railway is the most climate-friendly and energy-efficient medium, but the migration to the roadways in the big way, the network of th railways not expanded in terms of the roadways.

"The network of railways increased only 26 per cent since Independence while the network of the roads increased by over 1,450 per cent from Rs 4-5 lakh km to 58 lakh kms," Dutt said.

He also welcomed the PPP model for the sector as "something very good".

On the need of Rs 50 lakh crore investment till 2030, he said: "That is required as unless you expand the network, you cannot serve the people and you cannot reverse this from roads to trains."

In her maiden Budget speech, Sitharaman gave Indian Railways the highest ever outlay for capital expenditure amounting to Rs 1.6 lakh crore and a budgetary allocation of Rs 65,837 crore.

According to the budgetary estimates, the capex has been increased from Rs 1,58,658 crore in the interim budget to Rs 1,60,175.64 crore due to enhancement in gross budgetary support of Rs 1,250 crore and a Rs 267.64 crore contribution from Nirbhaya fund.

This is the highest-ever allocation for the national transporter.

Railway officials said that the regular Budget capex was high by Rs 26,779 crore as compared to the the actual Budget of 2018-19. Last year, the outlay for the railways was Rs 1.48 lakh crore while the Budget allocation was Rs 55,088 crore.

Sitharaman also said that the national transporter will be encouraged to invest more in suburban network through special purpose vehicle structures such as the Rapid Regional Transport System.

Railway stations modernisation will also be launched this year, she added.

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By Vishal Kampani

(The writer is Managing Director, JM Financial Group. The views expressed are personal)

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By Ajay S Shriram

(The writer is Chairman & Sr Managing Director - DCM Shriram Ltd & Past President, CII. The views expressed are personal)

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Kolkata, July 5 (IANS) West Bengal's leading industrialists and business chambers on Friday lauded the Union Budget as "balanced" and "growth focussed" that lays the roadmap of a 'new India'.

They also praised the Budget document presented in the Lok Sabha by Finance Minister Nirmala Sitharaman for its emphasis on rural economic development and infrastructure, including housing, that would augur well for banks and housing finance companies.

On the flip side, Bengal Inc expressed its reservation on imposition of TDS of two per cent on cash withdrawal exceeding Rs one crore in a year as also the proposal to raise minimum public shareholding of listed companies from 25 per cent to 35 per cent.

Bharat Chamber of Commerce president Sitaram Sharma said the Budget has a "positive approach" and its stress on rural economic development in terms of roads, affordable housing would boost the infrastructure sector and its contributing industries.

"Imposition of TDS of two per cent on cash withdrawal exceeding Rs one crore in a year from a bank account would be real tax on the companies where the market is still dominated by the cash transaction and digital transaction is an additional cost," Sharma said.

Bengal National Chamber of commerce ad Industry president Satyam Roy Chowdhury praised Sitharaman for presenting a "Welfare oriented budget" that has "righly recognised the imperatives of agriculture and fishery".

RP Sanjiv Goenka group's Chairman Sanjiv Goenka praised the Budget for laying" the "roadmap for a new India, for a modern India based on inclusiveness and development".

He said the union finance minister's proposal for reformation of tenancy and labour laws, would help "ease of living and ease of doing business in India".

FMCG major Emami Group Director Aditya Agarwal said it was a "balanced budget" where infrastructure, education and rural economy are the major beneficiaries.

He said the Budget would benefit the cement industry and "the writing on the wall is that super rich and those in the highest tax brackets should not expect any sops.

Sachchidanand Rai, Chairman, Eden Realty Group said the budget is based on the philosophy ofAreform, perform and transform.

"Special sops to buyers of affordable housing units of up to Rs 45 lakh will give a boost to the housing sector in the short term."

Bandhan Bank MD and CEO Chandra Shekhar Ghosh said: "The Finance Minister's maiden Union Budget is growth-focussed and builds on the foundation that the government created in the last term."

" The sops announced in the affordable housing segment is a welcome move not just for home seekers but also for builders, banks and HFCs."

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By Jaspal Bindra

Boosting growth in affordable housing
A further interest deduction of Rs 1.5 lakh (total Rs 3.5 lakh) on affordable housing loans along with a strong focus to scale up construction timelines was much needed to boost growth in housing finance companies.

Additionally, the fact that the completion of houses that previously required 314 days/house has come down to 114 days makes the target of Housing for All certainly a bit more achievable. Shifting the regulation of HFCs from the National Housing Bank to the RBI could bring in more uniformity.

Infrastructure growth
A proposed investment of Rs 100 lakh crore in the infrastructure sector reiterates the government's focus on stimulating financing for capital expenditure in the core sectors. However, this will largely be dependent on the private sector's ability to mobilise financing in the infrastructure sector, which currently looks subdued.

Infrastructure credit enhancement initiative is a fresh move which has been under contemplation for sometime, but is very relevant from a timing perspective. However, I would closely watch out for its scoping and overall envisaged roll out model since we have seen other models like take-out financing achieving limited success.

Boosting digital presence
A two-pronged approach announced towards improving digital connectivity in rural India as well as a reduction in digital payments charges will lead to a significant reduction in cash transactions, better financial inclusion and reduced cost overheads.

Over 2.5 lakh villages are expected to be powered with high-speed broadband internet, giving the hinterland access to facilities of online banking. Further, the TDS of 2 per cent on cash withdrawals over Rs 1 crore per year will encourage digital payments.

Overall, the Finance Minister has delivered a comprehensive Budget that addresses structural issues for the economy in the long term. Once the fine print is understood, one can see the near term impact.

(The writer is Executive Chairman, Centrum Group. The views expressed are personal)

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New Delhi, July 5 (IANS) Experts in the education sector have hailed the announcement of "Study in India" programme by Finance Minister Nirmala Sitharaman to attract foreign students in the country. They also believe that the country has potential to become an education hub.

"We are pleased to hear that the government is keen to make India an international hub for education," said Gaurav Srivastava, Regional Director, South Asia, GMAC.

He said: "We have been running a 'Study in India' campaign for the last two years in partnership with some leading business schools to help them getting international candidates in their classroom, who bring diversity and a rich perspective of what is happening in other economies."

During her maiden budget speech, the Finance Minister said that three institutions -- two IITs and the IISc - now figure in top 200 institutions in the world university rankings and the government will start a programme named 'Study in India' to encourage foreign students to study in Indian varsities.

"India has the potential to become the hub of education and the 'Study in India' programme will focus on bringing foreign students to the country," she said.

A sum of Rs 65 crore has been allocated in the Budget for the initiative.

The sector also responded positively to the government's assurance to bring the new education policy into effect, keeping in pace with the changing needs of the education sector against the backdrop of technological advancement.

"Two significant initiatives, National Education Policy and the Union Budget, coinciding this year is a huge opportunity for the education sector. We welcome the government's proposal of setting up National Research Foundation to improve the quality of research across all levels of private and public educational institutes. I believe it can be a game-changer. However, there is a need for a higher focus on 'K-12' education system," said Srini Raghavan, Founder and CEO, Educational Initiative.

Sitharaman also emphasised on imparting new-age skills in areas like artificial intelligence, Internet of Things, big data, 3-D printing, virtual reality and robotics to equip youth to take up high-paying jobs overseas. The industry experts have welcomed the government's move to close the wide gap between the education imparted and job ready skills.

"Skilling is a segment which requires a closer look as India still in grips with acute skill shortage -- the gap between education imparted and the skills required, is vast. As a solution, this budget has brought a great amount of hope. Government's move to have 75,000 skilled entrepreneurs is set to boost skill development and job creation," said Narendra Shyamsukha, Founder & Chairman, ICA Edu Skills.

"For this, the government has proposed to focus on creating training modules for industry-relevant skills like AI, IoT and Big Data. This, in turn, will help address the severe skill shortage technology and IT companies are facing right now. ICA heralds this move and pledges to continue creating such path-breaking curriculum, empowering students to reach to the zenith," he said.

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By Arul Louis

New York, July 5 (IANS) The US-India Business Council (USIBC) on Friday welcomed India's budget, calling it "forward-looking and reform-minded".

USIBC President Nisha Biswal said the proposal to "liberalise FDI (foreign direct investment) in a number of sectors and allow 100 percent FDI for insurance intermediaries, and increase FPI (foreign portfolio investment) investment limits" were welcome proactive measures.

These and the measures to double farmers' income were reforms actively supported by the USIBC, she added.

"Goals like transforming India into a global space and aviation hub also demonstrate the longer term thinking of the new government," said Biswal.

She appreciated the emphasis in the budget on training Indians for emerging technology sectors.

"USIBC members will be encouraged by the budget's focus on skilling Indians, with an emphasis on jobs in the data analytics, AI (artificial intelligence), and robotics sectors," she said.

"We are pleased to see a 2019-2020 budget that delivers a forward-looking and reform-minded approach for the Modi government's second term," she said.

Biswal, who is a former Assistant Secretary of State, said: "We look forward to working with Prime Minister Modi and the Government of India to make these priorities, and the larger vision for a modern India, a reality for people across the country."

(Arul Louis can be reached at arul.l@ians.in and followed on Twitter @arulouis)

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Chandigarh, July 5 (IANS) The Confederation of Indian Industry (CII) Chairman, Northern Region, Sameer Gupta on Friday hailed the Union Budget, saying it is aimed at reaching a $5 trillion economy in the next few years.

He said the Budget has given attention to all major aspects of the economy such as enhancing farmers' income, infrastructure development, rural and urban development and empowering youth and women.

"We are happy that many of our recommendations were incorporated in the Budget,"he told IANS.

Sanjay Khurana, Chairman, CII Regional Committee, said the smooth flow of credit to micro, small and medium enterprises has been encouraging component of the Budget.

Mahindra & Mahindra (Swaraj division) Chairman Harish Chavan said transforming the rural infrastructure, agricultural diversification and focus on fisheries, cattle field and milk were some of the unique features announced by the Finance Minister.

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India's spending on health care is one of the lowest in the world with the current spend on health care at just a little over 1 per cent of Gross Domestic Product (GDP).

The government in its National Health Policy spoke about increasing the spend to 2.5 per cent of the GDP. But it is far from the target.

The allocated fund for Ayushman Bharat scheme is not matching the size of the problem. I hope this will be addressed on priority to fulfil the demands of the citizens belonging to the lower economic strata for accessibility to quality health care.

(The writer is CEO, Eurolife Healthcare Pvt Ltd. The views expressed are personal)

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By Vinod Nair

(The writer is Head of Research, Geojit Financial Services Ltd. The views expressed are personal)

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New Delhi, July 5 (IANS) The allocation of Rs 60,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Programme (MNREGA) in the Union Budget presented on Friday is expected to boost employment in rural areas, experts told IANS.

The programme, which aims to enhance livelihood security in rural areas, had been allocated a sum of Rs 55,000 crore for the financial year 2018-19. The revised estimates for the programme had shot up to Rs 61,000 crore however.

The sum allocated on Friday is the same as had been announced for the programme in the interim budget that had been tabled in Parliament earlier this year by stand-in Finance Minister Piyush Goyal.

Experts told IANS that the government is strengthening the programme in order to create more productive assets.

"Earlier, the sum allocated for the programme was generally used only for construction of roads. However, the government is now focusing on creating more productive assets like village ponds and water harvesting projects. Creation of these assets is expected to generate more employment opportunities," agriculture expert P.K. Joshi said.

The increment in allocation for the programme, which is Rs 5,000 crore above the sum that had been allocated in the previous financial year, is considered meagre by many.

"Minimum wages have remained stagnant in several states while the rural economy is in distress. With no substantial hike in budget for this programme, crores of rural workers will remain unemployed. Inflationary pressures in rural areas will not be addressed," Ashish Ranjan of the National Alliance for People's Movement told IANS.

Notwithstanding the budgetary allocation for this programme each year, quality of works undertaken by the government with the allocated amount has always been a cause of concern.

"The rural development ministry has claimed that quality of assets undertaken through this programme have improved substantially. It is more important if works undertaken are of a longlasting nature. This programme is a demand-driven scheme and more funds should be provided in the revised estimate," former Agriculture Secretary Siraj Hussain told IANS.

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By Pramod Chaudhari

(Pramod Chaudhari, Executive Chairman, Praj Industries IndiaPramod Chaudhari, Executive Chairman, Praj Industries India. The views expressed are personal)

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By Pradeep S. Mehta

While the government highlighted the need for Rs 50 lakh crore to develop railway infrastructure between 2018 and 2030, no announcement to increase capital expenditure in railways was made. It is likely to launch public-private partnerships (PPPs) for faster development of infrastructure, including completion of tracks and passenger freight services.

India has had a checkered history with PPPs. The Kelkar Committee on PPPs investigated the issue at length and presented a roadmap for PPPs. Unfortunately, its recommendations are languishing with the Finance Ministry for more than three years now.

The Government must follow through on its positive signaling by implementing the Kelkar Committee recommendations and adopting a People First PPP model. A PPP Project Review Committee and an Infrastructure PPP Adjudication Tribunal for re-negotiating concessions in cases of distress would be steps in right direction.
T
he government has set an ambitious investment target of Rs 80,250 crore for phase three of the Pradhan Mantri Gram Sadak Yojana, under which the government wants to build 1,25,000 km of village roads. The government has rightly focused on enhancing connectivity. Time-bound implementation of these initiatives will be the key.

Several measures have been announced to empower micro, small and medium enterprises (MSMEs) and promote start-ups. These include interest subvention scheme and payment platform for bill filing for MSMEs. In addition, e-verification is being launched to establish investor identity and source of funds, and to resolve tax issues relating to fund raising.

While these are steps in right directions, the challenges faced by MSMEs and start-ups are much more complex. There is the need to ensure availability of factors of production through persistent economic and bureaucratic reforms to foster MSMEs.

The government has proposed to permit 100 percent foreign direct investment (FDI) in insurance intermediaries sector, and ease local sourcing norms FDI in single brand retail.

It would be a folly to assume that these moves would automatically result in investment. Lot of sectors like insurance suffer from uneven playing field with government preference to public sector entities. Unless such inherent deficiencies are addressed, these moves may not have desired impact.

The government hopes to raise finances through disinvestment and sovereign external debt. While disinvestment proceeds have witnessed steady decline over the years, several experts have already cautioned about the sovereign external debt route, which needs to be evaluated carefully.

For employment generation, the government intends to boost agro-rural industries through cluster based development with a focus on bamboo, honey and khadi clusters. It intends to set up 100 new clusters for helping 50,000 artisans during 2019-20.

While focusing on clusters is the step in right direction, a top-down model in this regard might not work. A bottom-up approach for cluster identification and development through stakeholder engagement and focused on resolving unique cluster specific problems is needed.

Similarly, a top down model to prepare youth for new age skills might not have desired results without other related reforms. The government should have boosted investments in health, education and social sectors to help individuals to prepare themselves for changing nature of work.

(Pradeep S. Mehta is the Secretary General of CUTS International. The views expressed are personal.)

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Bengaluru, July 5 (IANS) The absence of a new Special Economic Zones (SEZ) policy in the Union Budget for fiscal 2019-20 is a missed opportunity, said Indian IT industry apex body Nasscom on Friday.

"One key exclusion in the Budget is a new policy for SEZ as its benefits end in March 2020. If they (benefits) are not extended, India will miss the opportunity even as other countries continue to provide benefits to their enterprises," said Nasscom in a statement.

Noting that the Economic Survey for the fiscal had stressed on the need to focus on large firms to achieve the $5-trillion dream, the industry's representative body said the budget had fallen short on renewing the SEZ policy.

"In our pre-budget recommendations, the industry's demand to the finance ministry was a proactive SEZ policy to strengthen our country's position as a global hub for IT services," said the statement.

As the resilient IT-BPM (business process management) sector contributes 7.9 per cent to the Gross Domestic Product (GDP) and creates a whopping 40 lakh jobs, the apex body said lack of incentives would impact the country's image as an attractive destination for outsourcing IT services.

The Economic Survey for fiscal 2018-19, tabled in Parliament on Thursday, estimated the IT-BPM revenue to be $181 billion, including $136 billion from exports for the fiscal under review, as against $167 billion, with exports at $126 billion in fiscal 2017-18.

"IT services constitute the largest segment, with 52 per cent share, followed by BPM contributing 20 per cent, while software products and engineering services accounted for 19 per cent, hardware 10 per cent and e-commerce 12 per cent," said the survey.

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By S. Ranganathan

The Budget has proposed opening of FDI in key areas such as media, aviation, insurance, and single brand retail to attract foreign portfolio investments (FPIs) into the country. The idea is to make India an investor-friendly destination.

Another key proposal of the Budget is to extend the concessional corporate tax of 25 per cent for companies with turnover of up to Rs 400 crore from the earlier threshold of Rs 250 crore. The move will bring almost the entire SME sector within the purview, as they will be required to pay just 25 per cent tax.

The divestment target of Rs 1.05 lakh crore as well as Rs 70,000 crore bank recapitalisation for the public sector banks will also ensure period infusion of funds. Public sector banks will get some amount of growth capital as a result of that.

The Budget has not only addressed the short-term challenges which resulted from the the fallouts of the IL&FS scam and the NBFC crisis, it also addressed a lot of long-term issues. The strong push to the infrastructure and affordable housing space will give a lot of fillip to the cement sector of the country.

(The writer is Head of Research at LKP Securities. The views expressed are personal)

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Dehradun, July 5 (IANS) Uttarakhand Chief Minister Trivendra Singh Rawat on Friday described the Union Budget as inclusive, growth-oriented and balanced.

Congratulating Finance Minister Nirmala Sitharaman for presenting her maiden budget, the Chief Minister said the budget would prepare the Indian economy to reach the five trillion dollars mark from three trillion dollars.

Besides various welfare schemes for the common people, the budget lays emphasis on infrastructure and industry. The focus of the budget is on villages, poor people and farmers, he said.

By giving Rs 3.5 lakh relief in interest on home loans up to Rs 45 lakh, the Finance Minister has also taken care of the middle class, Rawat said.

The government's resolve to develop 17 iconic destinations would surely give a boost to the tourism sector, he said.

Meanwhile, former Chief Minister Harish Rawat has criticised the centre for tampering with the labour laws which he said would adversely affect the interests of the workers.

"By converting 44 labour laws into just four will definitely jeopardise the interests of the labour class," he said while commenting on the budget.

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By Sanjeev K. Nayar

(Sanjeev K. Nayar is the General Manager, ITC WelcomHeritage. The views expressed are personal.)

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By V Ravi

For starters, the positive reference made by the Finance Minister about non-banking financial companies (NBFCs) as an important growth lever by contributing to improved consumption and capital formation will go a long way in reinvigorating the SME sector.

Broadly, we see the Budget from the following aspects:

1. Ensuring availability of credit to create infrastructure: In this direction, steps are taken for providing credit through capital debt market, creation of Credit Enhancement Corporation and enhancing capital expenditure through use of public-private partnership model, to enable faster and continued growth.

2. Upliftment of the rural population: Continued focus on providing LPG connections to households, 'Housing for All' and building increased road network, continue to enable improvement in livelihood conditions.

3. Sustainable growth: Due importance has been given, be it by building roads through green technology, creation of infrastructure for rainwater harvesting and water conservation, or use of solid waste management technology to create energy. Over and above this, improving demand by providing incentives on purchase of electric vehicles was a noble idea. What needs to be added to this is enabling infrastructure creation for easy access to charging facilities.

4. Improving NBFCs' access to funds from the banking sector would go a long way in rebuilding confidence. Some actions like bringing NBFCs on par with banks in respect to tax reforms are well appreciated.

   The NBFC industry would have been glad to see the formation of a refinancing body which would address the liquidity stress created by certain entity-specific events that tend to affect the sector as a whole. We believe a first step to that is enhancing the regulatory authority of Reserve Bank of India over the NBFCs.

   (The writer is Executive Director & Chief Financial Officer- Mahindra Finance. The views expressed are personal)

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By George Alexander Muthoot

Presenting the maiden budget of the Modi 2.0 government, Finance Minister Nirmala Sitharaman has highlighted the government`s thrust on infusing liquidity in the non-banking finance sector (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. In order to accelerate the goal of 'Housing for All', the tax holiday provided to developers will boost the affordable housing sector.

With the RBI now becoming the regulatory authority for housing finance as well, it will lead to easy regulation as all financing sectors would fall under one authority.

(George Alexander Muthoot is the MD of Muthoot Finance. The views expressed are personal.)

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By Manish Gunwani

(The writer is CIO, Equity Investments, Reliance Nippon Life Asset Management Ltd. The views expressed are personal)

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By Abhijeet Sinha

Budget 2019 has announced an income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electronic vehicles (EVs). The move will motivate buyers to purchase these vehicles and banks to aggressively step into financing them.

The reduction in GST rates on electric vehicles(EV) from 12 per cent to 5 per cent will also motivate manufacturers of EVs.

(Abhijeet Sinha is National Programme Director - EODB at ASSAR on E -Vehicles. The views expressed are personal)

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By Shishir Baijal

(Shishir Baijal is the Chairman & Managing Director at Knight Frank India. The views expressed are personal)

The post Budget lays fundamental thrust on infrastructure development appeared first on Social News XYZ.

Jaipur, July 5 (IANS) The Rajasthan BJP on Friday hailed the Union Budget terming it as inclusive for each section of the society, while the Congress in the state termed it as directionless.

"The Union Budget brings the New India's picture to fore. Modiji has proven the slogan 'Sabka Saath Sabka Vikas' by announcing house and power connection for each family. For the first time, announcement has been made to give pension to small traders which is historic, said BJP MLA Rajendra Rathore.

On the other hand, Chief Minister Ashok Gehlot said the first budget of the NDA government in its second term lacks direction.

"Its purpose is not clear and it is disappointing... There is no concrete plan or solution to accelerate growth of economy, to create jobs or to increase flow of investment," he said in a tweet.

"Gaon, Gareeb and Kisaan are mentioned as mere slogans without any concrete scheme to deal with farm distress. No relief to middle class or salaried class either. On top of it, raising fuel prices will put further burden on common people," he said in a trail of tweets.

"No mention of agriculture in budget speech shows government is not at all serious about improving conditions in rural sector. The Finance Minister did not mention various budgetary allocations in her speech, which has been part of past budget speeches for sake of clarity," he said.

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By Sandeep Shah

(The writer is a partner in N.A. Shah Associates LLP. The views expressed are personal)

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By Mukund Vasudevan

(The writer is Country Head, Ecolab India, and Co-Chair, FICCI-Water. The views expressed are personal)

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Bhopal, July 5 (IANS) Madhya Pradesh Chief Minister Kamal Nath on Friday termed Budget 2019-20, presented by Finance Minister Nirmala Sitharaman, as "disappointing and inflationary".

"People are feeling cheated with this disappointing and inflationary budget, which has nothing for the common man, except for long-term dreams like home and electricity for all by 2022-2024," said Kamal Nath.

"The budget has increased the prices of petrol and diesel instead of curbing them. There is no relief for the middle class in income tax. Neither does the budget say anything about increasing farmers income, nor about giving them any relief from loans.

Basically, the budget falls short of the expectations of the farmers, villages, poor, youth and women. It will only slow down the speed of development of the country. It has no connection with 'acche din'," he said.

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New Delhi, July 5 (IANS) Hailing the Union Budget 2019-20 as "transformational", industry leaders on Friday said it offers a lot for farmers and the common man.

Speaking to IANS, Vineet Agarwal, Managing Director, Transport Corporation of India Limited (TCIL) said the Budget is encouraging for farmers and offers affordable housing to the people.

"The Budget is nice for farmers as there is encouragement in various fields, including agricultural entrepreneurship. This is also nice for the common man as it is talking about affordable housing," Agarwal, also Vice-President, Associated Chambers of Commerce and Industry of India (ASSOCHAM), said.

Calling the Budget "transformational", Balkrishan Goenka, Group Chairman, Welspun Group and President, ASSOCHAM said the Budget is good for farmers as it talks about agriculture infrastructure.

"One of the main issues before the farmers is lack of infrastructure. There is no proper infrastructure for food grains. The Budget is good for farmers from this point of view," he told IANS.

He also said Union Finance Minister Nirmala Sitharaman's maiden budget is a mega investment-oriented initiative with a strong focus on scaling up rural infrastructure and demand along with a slew of tax simplification measures, aimed at boosting growth, and maintaining a high level of fiscal discipline.

At an interactive session organised by ASSOCHAM, Goenka said the Budget is aimed at taking the Indian economy to USD five trillion by 2025.

He said, in the Budget, the government has focused on affordable housing with higher tax benefits to end users, start ups, sustainable development, and 'Make in India'.

It also gives a firm assurance of ease of living for common citizens and businesses by tax authorities, he added.

"The initiatives like e-assessment, inter-changeability of PAN and Aadhaar, and digital payments would make a big difference to tax payers.

"Likewise, the increase in the threshold for lower corporate tax of 25 per cent to Rs 400 crore annual turnover would encourage higher investment which would also get a boost from proposals like further liberalisation of FDI norms in sectors like insurance intermediaries and aviation," Goenka said.

He said the roadmap for a huge investment in railways with the involvement of the private sector would create a spillover for several sectors.

"Besides the low-hanging areas of tourism wherein several iconic sites are being identified would lead to immediate gains," he added.

The ASSOCHAM President also said the next phases of affordable housing and national highway projects should also be growth drivers.

"The disinvestment target of Rs 1.05 lakh crore along with the commitment to disinvest Air India would be good efforts to enhance the fiscal stability with fiscal deficit being pegged lower at 3.7 per cent of GDP. Likewise, the re-capitalisation of the public sector banks by Rs 70,000 crore should increase lending including to the stressed sectors of the economy."

Goenka further said the focus on 'Make in India' is visible as also emphasis on sustainable development by measures like electric vehicles and renewable energy.

"Boost to high-technology manufacturing like semi-conductor and commercialisation of space technologies are innovative measures. Overall, it is a business-like Budget taking into the account the ground reality. The gains would be visible in a sustained manner," Goenka said.

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