What Industry Think of Modi's Union Budget 2.0

Digital Payments

MDR has been waived off on cashless payments, RBI and banks would bear these costs. Cash withdrawal of more than a crore in a year from bank accounts would be imposed with two percent TDS, to discourage business payments in cash mode.  

Anand Ramachandran, CFO, Ingenico ePayments India 

This budget is a good synthesis of continuing the Digital India mission with improving efficiency. The proposal to set up a payment platform for MSMEs for online presentation and payment of invoices will not only help cash flow but also give a huge boost to Digital Payments, as the entire supply chain will now be incentivized to go Digital. Also the platform opens up possibilities for accessing lower cost funding. The other two moves for no MDR for businesses above Rs 50 crores turnover and 2 percent TDS on cash withdrawals more than 1 crore per annum are a further nudge to industry to lower the entry barrier to Digital Payments and disincentivize use of cash. Overall, a positive budget for the payments industry.

Dr. Jamshed Bharucha, Vice Chancellor, SRM University, AP-Amaravati

We welcome this year’s budget and its focus on research, innovation, technology-enabled teaching, and transformation of Indian higher education to global best practices. Allocation of 400 crore is also a welcome initiative. It will enable Indian institutions to build truly international student bodies, launching a new generation of graduates to cement India's leadership position on the internationals stage. We look forward to support Government’s initiative and provide impetus to higher education in India. 

Economy

Fiscal deficit target for FY 19 is pull down to 3.3 percent of the GDP from existing 3.4 percent. Government would start raising part of borrowing in foreign currency.

Brijesh Parnami, CEO, Coretree Wealth Advisory Services.

 It's a holistic budget covering all major parts of reform areas i.e. focused on poor households, youth, infrastructure, agriculture, infrastructure sectors. 100 percent FDI insurance intermediaries is a welcome move to push insurance penetration in India.

Taxation

Personal income tax would remain unchanged. Home loans would be relaxed of Rs 1.5 lakh on purchase of house worth up to 45 lakh. The tax imposed on custom duty to be hiked by one rupee this would make gold, precious items, petrol & diesel dearer. The higher income holder are to pay more surcharge, those with income above 2 crore and above 5 crore will be imposed of three percent and seven percent increase to the existing tax rate.