Industry reacts largely positively to Piyush Goyal's Interim Budget 2019

Here are some of the reactions:

Sanjiv Puri, Managing Director, ITC Limited:

The Interim Budget proposals should augur well for the Indian economy by providing a growth impetus through a boost in consumption as well as an inclusive framework designed to benefit agri and rural communities, unorganised sector workers as well the middle class. The PM Kisan Samman Nidhi programme, the move to set up 1,00,000 digital villages and the increase in allocation to rural infrastructural development will indeed go a long way in enabling empowerment of rural communities.

Anil Kumar Chaudhary, Chairman, SAIL:

"The budget announcement for industry as a whole looks positive. The development of infrastructure in the Country has been given further emphasis in this interim budget as well. Sectors like railways, roadways and waterways remain the focus areas of growth. Budget allocation for expanding the railway infrastructure, improving connectivity through Pradhan Mantri Gram Sadak Yojana and scaling up the Sagar Mala project are all indications for more steel consumption in the country."

Ravi Sehgal, Engineering Export Promotion Council (EEPC) Chairman: 

The Budget for 2019-20 of Prime Minister Mr Narendra Modi's Government gives a clear vision for further improving the Ease of Doing Business by committing increased investment to projects relating to key infrastructure projects which would reduce the cost of transactions for India's exports. Be it roads, sea ports, airports, roads and railways under different flagship programmes like Sagarmala projects, they would all help reducing the time for the container movement right from the source of the shipment to the export destination, Mr Sehgal said. The capital expenditure of Rs 1.58 lakh crore for the Railways.

Rajesh Mittal, Managing Director, Greenply Industries Limited:

  In the manufacturing sector, a tax rate of 25% for new manufacturing units will give a great boost to capital investments and the thrust in the budget on real estate and housing sector and giving money in the hands of the people will boost all round consumption. After the budget I am even more bullish on the Indian economy.

Amarjeet Maurya (AVP- Mid Caps, Angel Broking):

The budget has given a big boost to the urban incomes and rural incomes. For example, the increase in the taxable limit from Rs.2.50 lakhs to Rs.5 lakhs will be a boost for urban and semi-urban purchasing power. This is likely to be positive in terms of additional spending for sectors like FMCG, consumer durable goods and for automobiles. The government decision to allocate Rs.75,000 crore to 12 crore farmers for a minimum assured income of Rs.6000 per year. This is likely to give a big boost to rural consumption again with positive implications for sectors like tractors, hybrid seeds, agri inputs, two wheelers, consumer goods etc. There is a positive takeaway for the real estate sector. The abolition of tax on notional rent on second homes will incentivize people to now invest in second homes at a much aggressive rate. That is good for realty companies. Also the budget offers a special rebate to realty developers by allowing them to maintain 2 years inventory without showing notional rent as against 1 year inventory today.”

Sangita Reddy, Joint Managing Director, Apollo Hospitals Group:

The interim budget threw light on the Government’s dedication to a healthy India with a distress-free healthcare system. The budget mentioned the Government’s aim to bridge the urban rural divide and provide benefits that people in a city have to those staying in villages. Healthcare should be a critical component of these efforts. We must not lose this opportunity to address the urban-rural imbalance in health infrastructure and ensure specific policies to encourage private sector to invest in the same. The announcement of a National Centre on Artificial Intelligence is also a big positive. AI today has great potential in transforming and designing new tools which will equip doctors in the fight against non-communicable diseases. At Apollo, we have already taken the first step with an Intelligent Platform designed to predict cardiovascular disease risk score for Indians.”

Khushru Jijina, Managing Director, Piramal Capital & Housing Finance: 

The Interim Budget for FY20 aims at a fine balance between the upliftment of the rural economy as well as incentivizing the high spending urban middle class. The budgetary provisions for India’s rising middle class is expected to stimulate demand and help attain the targeted economic growth. Budgetary outlays aimed at the real estate sector are encouraging for the sector.  Benefits like rolling over capital gains tax to two homes and exempting income taxes on imputed rent for the second occupied home would stir up home demand especially in the affordable segment.  Additionally, the real estate developers would be benefited by the extension of the exemption period for levying tax on unsold inventories at a time when the sector is undergoing liquidity stress. Also, we expect a favorable decision from the GST council overseeing ways of normalizing the tax’s impact on developers as well as end consumers. Also, the Finance Minister’s reiteration that renewable energy is one of the tenets of economic growth till 2030 would bode well for the industry including solar and wind energy.

Raj Kumar, Whole Time Director & Chief Executive Officer at LIC Mutual Fund:

The budget is positive for consumption & rural economy. We don’t see anything major negative on fiscal  Tax compliance will also improve due higher slabs & ease which government is aiming at &  lots of money is being given  to the tax payers by giving various benefits on direct taxes like increasing the threshold to 5 lacs, increasing the standard deduction by addition 10 thousand, tax rebate on notional income from second home & minimum support of Rs 6000 to Farmers. All these measures will fuel consumption & increase the top line of companies. However there is slippage in fiscal deficit & likely increase in borrowings may have bearing on bond market. 

Shrinivas Rao, CEO-APAC, Vestian on the effect of the proposed budget on the Real Estate sector:

“Real Estate sector is cautiously optimistic about the interim budget with expected changes in GST providing relief to potential home buyers which can significantly boost the residential segment. Additionally, exemption of taxes on notional housing rent will further encourage taxpayer to purchase and maintain second homes. Rollover of capital gains to two properties, extension of affordable housing tax benefits for housing projects till 31 March 2020 and exemption of tax on notional rent of unsold inventory for 2 years will provide more benefits to the Real Estate sector. “

Sunil Gupta, MD and CEO, Avis India

The statements given by the government in toady's Budget highlight the intention of the government to promote road transportation by building new highways. Building 27kms of highways per day will make India the fastest highway developer in the world. The growth in the network of highways will lead to the creation of direct jobs and contribute to tourism. The Sagar Mala project will improve port linkages and drive the export of cars, critical for Make in India. We are supportive of Vision 2030 mentioned by Mr.Goyal in the context of electric vehicles (EVs). The Budget was largely silent on concrete incentives for EVs but we hope that in the next FAME policy, the Government will spell out incentives for all stakeholders in the EV ecosystem – manufacturers, charging infrastructure providers and operators.  Promoting the manufacture and use of electric vehicles is a rare multi-benefit initiative, reducing the carbon footprint of transportation, air pollution and crude imports. Also, abolition of customs duty on components for assembly of lithium batteries for EVs in India and promotion of green-field EV battery capacity in India will drive Make in India." 

Surajit Das, Co-founder and CEO, Routematic

Not much was talked on startups in the budget this year. The 2% interest subvention on MSME loans will help to get access to capital. Areas, where we wanted more allocation, were higher education to improve talent pool and some innovative thinking around reducing capital gains tax for VCs which could make India the preferred investment destination for VCs.

Dr. Alok Roy, Chairman, Medica Hospitals Pvt Ltd:

Now that the Interim Budget is announced, people of the country will look forward to how best the policies are implemented. In terms of healthcare, the citizens of India, will look forward to even better facilities and more infrastructural developments in deeper pockets and hinterlands. Upgrading the national health mechanism should always be a primary agenda for any government to come. We can see significant measures to help poor and marginal population of our country in this interim budget. 

Mr. Sachin Haritash, Founder, Mavyn Digital Trucking

The enhancement and impetus which the government has bestowed on Startups is really commendable. We look forward to the implementation of announcements made in the Budget. This will lead to creation of more jobs in the transportation and logistics industry especially amongst the rural youth. With the widening reach of the internet, creation of digital villages, wifi hotspots and hubs last mile connectivity and outreach will improve.  

Sandeep Sabharwal, Group CEO-SLCM

 The Union Budget 2019 is growth oriented and futuristic. It continues to rightly focus on infrastructure development and agriculture sector. The planned investment in these two critical sectors will not only create jobs but also give impetus to demand generation and economic growth. The government’s proposal to improve income of marginal farmers under the ‘Pradhan Mantri Kissan Samman Nidhi Yojana’ and provide them structured income support to procure seeds, equipments and other needs under PM KISSAN scheme besides interest subvention to protect them from severe natural calamities is a welcome move and will positively impact country’s farmers. Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of INR 3000 per month for workers in the unorganized sector and continued support to Mahatma Gandhi National Rural Employment Guarantee program will ensure the well-being of economically weaker sections of the society.