New Delhi: Finance Minister Nirmala Sitharaman on Saturday presented the second budget of the re-elected Modi government. Here are some industry-wise reactions to the Budget 2020-21.
“With the lowering of personal income tax, the middle-class and millennials will have more disposable income, thereby spurring spending and growth in the economy which will in turn also reflect in residential purchases. Affordable housing segment has also got a boost with the FM proposing to extend the tax holiday by one more year. However, the Budget leaves much to be desired for the real estate segment with no reduction in interest rates on home loans, no incentives for other segments beyond affordable housing, no announcements on single window clearance and industry status for the sector”, said Prashant Solomon, MD, Chintels India and Treasurer for CREDAI NCR.
“The Budget has acknowledged start-ups as the growth engines of the economy and proposed tax benefits for the sector through deduction of 100 per cent of our profits, increased turnover limit and period of eligibility. The reduction of personal income tax will increase spending power and spur growth in the economy and the real estate segment. The Budget has also focussed on the affordable housing segment with the Finance Minister proposing an extension of the tax holiday by one more year”, said Rohit Malik, Founder, and CEO, Clicbrics.
“With a thrust on talent, technology, and entrepreneurship, Budget 2020-21 is a promising budget in support of making India’s USD 5 trillion economy dream come true. It is heartening to see initiatives that are aimed at enhancing digital penetration in the country by making Fibre to the Home (FTTH) accessible to 100,000 Gram Panchayats via Bharat Net, which will go a long way in bridging the digital divide. Also, the decision to build data center parks for the private sector is another step towards making India a data economy superpower. Furthermore, strategic initiatives aimed at leveraging new-age technologies like the Internet-of-Things, machine learning, robotics, bioinformatics, quantum computing and artificial intelligence across sectors will further help in laying the foundation of a robust, digital economy”, said CP Gurnani, MD & CEO, Tech Mahindra.
“The 2020 Budget has been drafted around the key themes of talent, technology, entrepreneurship and sustainability and we applaud the Centre’s efforts at boosting the economy. The Finance Minister has maintained a focus on tourism by announcing that iconic destinations will be connected by “corporate” trains like Tejas and with the plan to develop five archaeological sites into iconic sites. Five new smart cities have also been proposed and Barco looks forward to partnering with the Government in this direction”, said Rajiv Bhalla, Managing Director, Barco India.
“We find Union Budget 2020 to be a reasonable one with strong measures and good intent. Tax benefit for the middle class makes life easier for the common man and leaves more money in the hands of the consumer. Decriminalization in the Companies Act is a major positive that Corporate India will welcome. No reduction in GST rate for vehicles is a dampener for us”, said Sharad Malhotra, President – Automotive Refinishes and Wood Coatings, Nippon Paint India.
“With umpteen focused initiatives like – FDI, emphasis on new skill development and entrepreneurship, the launch of new online degree courses /apprenticeship programmes and allocation of Rs 99,300 crore for world-class education, Budget 2020 will help position India as a global educational hub. We appreciate the launch of the ‘Study in India’ programme which will enable foreign students to apply for scholarships to study in India. Overall, we believe that this renewed push on providing quality education and enhancing the skills of our youth, will help India play a lead role in shaping the global economy in the future”, said PK Gupta, Chancellor, Sharda University.
“Budget 2020 truly sharpens the country’s focus on becoming the next global hub for education. Significant announcements like the introduction of FDI in the education sector, the launch of ‘Study in India’ programme, new apprenticeship programmes, and online degree courses, besides the continued budget allocation for skill development, reiterate the government’s commitment towards the youth of our country. I am confident that these strategic initiatives will play a decisive role in the building of a New Digital India”, said Dr Sanjay Gupta, VC of the World University of Design.
“In the Union Budget 2020, we welcome the increase in allocation of 69,000 crores for the health sector with 6,000 crores in PMJAY Ayushman Bharat scheme, with special emphasis on viability gap funding for setting up hospitals in the 112 aspirational districts (pan-India). Welcome the announcement on converting existing district hospitals to medical colleges through PPP mode, there is indeed a huge shortage of doctors in poor state districts”, said Farhan Pettiwala, Executive Director & Head Development – India & South Asia, Akhand Jyoti Eye Hospital.
“The Budget has focused on implementing major steps to revitalize the healthcare industry and allocation of Rs 69,000 crore will definitely contribute in making India a better place to opt for good quality healthcare facilities. Additionally, the opening of hospitals in tier-2 and tier-3 cities, and diversion of proceeds from taxes on medical devices for health infrastructure development in these cities; along with targeted campaigns to eradicate evils like TB are a few other laudable steps. We look forward to collectively building a healthy, robust India”, said Dr Ashutosh Niranjan, Medical Superintendent, Sharda Hospital.
“The Union Budget has rightly focused on entrepreneurship as a major pillar of the economy. We applaud the Centre’s proposal of setting up an investment clearance cell for end-to-end entrepreneurial facilitation. Further, the Finance Minister’s scheme to provide subordinated debt for MSME entrepreneurs also boosts the segment. We also welcome the Government’s thrust on sourcing external commercial borrowing and FDI financing to attract talent in the educational sector”, said Dr BBL Madhukar, Founder, Director General of BRICS Chamber of Commerce & Industry.