Overall, the Budget is comprehensive and focused on India’s long term growth. The recapitalisation of Rs 70,000 crore for Public Sector Banks (PSBs) is a positive sign. However, while some proposed reforms for NBFCs, MSMEs, EVs, and Start-Ups are commendable, we will have to wait and watch on how it is executed. The FY20 fiscal deficit target of 3.3 % of GDP, is also ambitious, when compared to the Interim Budget Estimate of 3.4% of GDP.

As expected, there has been no change in income tax slabs for individual tax payers, but there has been an increase for those earning INR 2-5 crore and above. The effective tax rate for these categories will increase by around 3% and 7%, respectively.

The proposal to extend Equity Linked Savings Scheme or ELSS-like income tax benefits to CPSE and Bharat-22 ETFs, will boost more retail participation in capital markets and increase tax saving options under section 80C. However, investors are advised to make careful choices.