What Industry Think of Modi's Union Budget 2.0

Industry giants share their view on the budget below.

Rajiv Singh, CEO, Stock Broking

The government has announced a divestment target of Rs 1.05 lakh crore for FY20. This is one of the ambitious targets set by the government after they successfully achieved the Rs 90000 crore target in the last financial year. The government needs buoyant market conditions to meet this target. The government has stated they are looking at strategic sale (or privatization) and this target may include the strategic sale of Air India, probably the first one which may be divested. However most of these divestment target will most probably be met by transferring state to CPSE ETFs, Offer For Sale or by selling stake to institutions like LIC.

 Raja Lahiri, Partner, Grant Thornton India

The Budget enhances the Government’s focus on Digital India and Startup India, newer technologies and higher education skills, which are keys to achieving the growth ambitions of the country. The incentives for start-ups, including the much-anticipated relief on the issue of angel tax, benefits of carry forward of tax losses and the measures to promote digital payments including the TDS levy are a push in the right direction. The proposal to increase the minimum public shareholding benchmark may need to be carefully evaluated for tax implications, especially for some of the Indian technology listed companies.”

Sudhindra Holla, Sales Director, Axis Communications India & SAARC

The Union Budget 2019 depicts the milestone set towards reaching $5 trillion economy by investing on infrastructure, digital economy and job creation. It brings us one step closer the economic growth as part of the five years plan with key focus on infrastructure development allocating budgets for roads, ports Infrastructure and logistics. We welcome the government’s focus on the construction and development of highways under the National Highways Program, to ensure creation of National Highways Grid of desirable capacity. Also applaud the continued focus and investments towards rail infrastructure by announcing and an investment of Rs 50 lakh crores. 

We also look forward to the focus on improving skills of our youth in areas such as Artifical Intelligence, Big Data, Robotics; this in turn will ensure more stability of jobs both in India and abroad. Furthermore, doubling allocation to Digital India will empower the semi-urban geographies and provide businesses to upscale and help in the country’s vision to a digital-first economy.”

 Harsh Shrivastava, CEO, Microfinance Institutions Network (MFIN)

We welcome the Union Government’s proposal of giving a one-time 6-months partial credit guarantee to PSBs for first loss against the purchase of the pooled assets of healthy NBFCs. This will infuse much-needed liquidity for NBFCs.  In turn, smaller NBFC-MFIs who depend on other NBFCs for funding also stand to benefit.

Anuj Gulati, MD & CEO, Religare Health Insurance (RHI)

We congratulate the government for presenting a forward looking and dynamic budget that takes into account the financial needs of the nation. The increased tax benefits offered on health insurance premiums to all segments of the population, including senior citizens, will urge people to avail the advantages of having a health insurance equipping them with a secure future. Tax benefit proposals will significantly benefit the middle class comprising of self-employed, small businesses, traders, salaried class, pensioners and senior citizens.