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  • Budget Reaction Quote 2019 from various industry leaders in the country

    Published on July 5, 2019

    Insurance Industry

    Sumit Rai, MD & CEO, Edelweiss Tokio Life Insurance

    The proposed 100% Foreign Direct Investment in Insurance Intermediaries will have a positive impact on customers, intermediaries and the sector.  Insurance distribution is an upfront-capital intensive business with a long gestation period,  and given low insurance penetration in India, there is a significant need to strengthen existent distribution networks. The proposed 100% FDI, coupled with a strong India growth story, will enable intermediaries to expand faster in non-urban markets, deepening insurance penetration in the country.

     This move will also help reform existing customer practices by leveraging global best practices and elevating customer experience in India, as far as insurance is concerned.

     NBFC Industry

    Rahul Jain , Head – Personal Wealth Advisory, Edelweiss.

    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.

    Mr. Rajesh Sharma, Managing Director, Capri Global Capital Limited.


    The government has set up very strong reforms to encourage the MSME business. The new policy Pradhan Mantri Karam Yogi Man Dan Scheme will not only boost the economy but will also encourage self-reliance among the MSME community.

     We believe that women are the real agent of change in the society and lack of access to credit should not deter them, providing them with a loan up to Rs 1 lakh under Mudra Yojana  is a great initiative to promote women empowerment.

    Government’s one-time six-month credit guarantee for the purchase of assets of high rated NBFCs up to Rs. 1 lakh crore is a clear direction to the banking and NBFC sector of the Government’s commitment to resolving the crisis.

     Moreover, by allowing FII’s and FPI’s to invest in debt papers of NBFC’s will create and give a boost to the much-needed liquidity to the NBFC’s. This may eventually help ease out the liquidity crisis in the real estate sector among other businesses.

     A great step towards Housing for All by 2022 by increasing the interest deduction up to Rs 3.5 lakh for affordable housing as against Rs 2 lakh earlier. This will definitely ensure that every Indian citizen is closer to achieve their dream of owning their house.

    The Union Budget 2019 has taken care of all majority reform and we look forward to the continued period of high growth for the Indian economy.


    Mehernosh Tata, Head SME Lending, Edelweiss

    “The budget recognized the critical role of MSMEs in taking India to a USD 5 trillion economy. There will be an increased focus on efficiency, faster access to credit and capacity augmentation through skill development, digitalization and infrastructure creation. The e-payment platform for MSMEs and pension scheme for retail traders will help in bringing the smaller entrepreneurs into the formal financial system. The interest subvention scheme, especially for women entrepreneurs, is a commendable step towards financial inclusion.

    I am hopeful that our 63 million MSMEs will benefit from the proposed Budget initiatives and we shall have more inclusive and sustainable growth overall.”


    Education Industry

    Mr. Sadiq Sait, Founder and CEO, uLektz Learning Solutions


    We are pleased with the Government’s effort to increase efforts to improve the skills of our youth in newer areas such as Artificial Intelligence, Big Data, Robotics, etc.

    The government’s Kaushal Vikas Yojana is a good initiative for the country’s youth to take up industry-relevant skill training and bodes well with uLektz’s mission to address the crucial issue of unemployment and underemployment. The proposal of ‘Study In India’ scheme will further aid the growth of the higher-education. Furthermore, to have a television channel exclusively for start-ups, will help to promote entrepreneurship, funding and tax planning.  One of the main challenges plaguing the start-up industry is the lack of funding. Now, with the government’s initiative to resolve the angel tax issue by removing the scrutiny on start-ups and by extending the period of exemption for capital gains tax, there would will be good impetus for accelerated growth and hassle-free conduct of business for start-ups in the country”          


    Real estate Industry

    Mr. T Chitty Babu, Chairman and CEO, Akshaya Pvt Ltd

    We congratulate Ms. Nirmala Sitharaman on her maiden budget speech in the Parliament today. The proposal to provide a deduction of Rs. 1.5 lakhs in addition to the existing Rs 2 lakhs for residential homes of up to Rs. 45 lakhs will be seen as a major boost to the real estate sector in the country. Though the income tax deduction proposal is for the current fiscal, we hope that the same is extended beyond this fiscal next year. The government’s focus to align the definition of affordable housing in the Income-tax Act with the GST Acts and the proposal to increase the limit of carpet area from 30 square meters to 60 square meters in metropolitan regions and from 60 square meters to 90 square meters in non-metropolitan regions is a welcome move for the homebuyers. Government’s concrete steps to address the NBFC crisis will encourage investments in the real estate sector and will in turn push the economy on a steady growth path.   

    Manufacture Industry

    Mr Aditya V Agarwal, Director, Emami Group

    “It has been a good budget. The nation expected a balanced budget marrying both the social and economic priorities of the country and the budget FY19-20 has delivered to its expectations. Infrastructure, education and rural economy are the major beneficiaries from this budget, signaling more employment and spending power generating strong demand across business sectors including FMCG.

    The budget also augers well for the cement industry with focus on infrastructure. Levy of custom duty of 10% on imported newsprint, uncoated and lightly coated paper will boost the domestic industry and create a level playing field.

    Though very marginal, the levy of 7.5% duty on import of palm oil by-products will provide some respite to the domestic refining industry. However, the issue of reinstating the differential in duty between crude and refined oil import to 10% from the current 5 % has not been addressed in the budget. Further, the Government needs to review all the existing free trade agreements (FTAs) for Bangladesh, Sri Lanka and Nepal in the edible oil sector.

    The budget has also provided some boost to the real estate industry.”


    Mr. K John Baby, CEO, Funskool India

    The Government’s move to continue with the policy of phased reduction in Corporate Tax rates, is a welcome step. The widening of Annual Turnover from 250 Cr to 400 Cr will reduce the tax liabilities for a large number of companies and boost profits in the long term. We welcome the Government’s initiative to crack down on nefarious activities and unfair trade practices that have availed undue concessions and export incentives, in the past. The fully automated GST Refund Module and Multiple Tax Ledgers for a taxpayers, are few steps which will bring transparency in the retail sector. Additionally, the Government’s scheme of the Pradhan Mantri Kaushal Vikas Yojana, will help create a large pool of skilled manpower and avoid skilled Labour shortage in the future.”

    Mr. Suresh Balaji, Country Manager, ALOGIC

    The government has taken definitive steps to boost manufacturing by inviting global companies through a transparent competitive bidding to set up mega-manufacturing plants in the areas of sunrise and advanced technology areas such as computer servers, Laptops among others. Also, the move to provide income tax exemptions under the Income Tax Act, and other indirect tax benefits will largely benefit the companies who have plans to invest and manufacture in the country. The extended emphasis on providing robust infrastructure, job creation and digital economy will go a long way in channelling the growth for manufacturing in the country. The impetus to solidify ‘Make in India’ is a positive step and will provide the domestic industry a level playing field and bring them at par with the global manufacturers in the next few years.

    Healthcare Industry

    Dr. Alok Roy, Chairman, Medica Group of Hospitals

    The Government has rightfully focused on bringing in several key structural reforms for the nation moving towards the goal. We would like to congratulate the Government for displaying commitment and concern towards improvement in Public Healthcare aiming to create a healthy India, with comprehensive wellness derived environment for all.

    We are happy to see that the government has proposed to expand Swachh Bharat Mission to undertake sustainable solid waste management in every village of the country. Rural health hygiene has definitely improved. Citizens are expected to be less vulnerable to communicable diseases in open defecation free villages. I believe the Swacch Bharat Mission is an ideal holistic mass initiative and has been effective and successful in changing the mind-set of people in the country.

    100% FDI in insurance intermediaries is a push for the insurance sector. Going forward we expect more people will be under the insurance coverage net and the transactions in hospitals will be faster. This will increase health security at the same time and create more opportunities in the sector. Additionally, the deduction limit for medical insurance that has been increased from Rs. 15,000 to Rs. 25,000 and for senior citizens, till Rs. 50,000, will augur well for individuals.

    The industry was intently looking forward for further announcements regarding Ayushman Bharat taking the right partnership approach to a more inclusive participation. Some relief on imported medical equipment could have been provided which would have benefitted the sector.”

    Agriculture Industry

    Mr Amit Saraogi, MD, Anmol Feeds Pvt Ltd.

    “We welcome the Pradhan Mantri Matsya Sampada Yojana (PMMSY) that will focus on addressing the critical infrastructural gap in fisheries sector. Due to the increase in demand of healthy animal protein consumption, fish farming and aqua culture has become an important and growing sector not only in India but across the world.

    Impetus provided to develop the infrastructure of the fisheries sector will yield in better productivity and efficiency, thereby, strengthening the value chain, including infrastructure, modernization, traceability, production, productivity, post-harvest management, and quality control. This will certainly benefit the aqua farmers and the rural economy in a big way.

    The government’s decision to upgrade agricultural infrastructure and support entrepreneurship in farm sector is a positive move.

    However, the livestock feed industry was expecting an address on the maize deficit as well as pricing issue that has been plaguing the industry since last year and offer some relief. It might impact the food security of the citizens in the long run.

    The sector will benefit from the Pradhan Mantri Gram Sadak Yojana which will enrich road connectivity to deeper pockets of India.”

    Jeweler industry

    Mr. Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers.

    We are happy to be contributing towards the growth of the country. This 25% increased revenue to the exchequer will boost the economy. We also request the government to take strict and adequate measures to curb smuggling of gold, which puts the arbitrage in the hands of the anti- social and law-breaking individuals.”