Corporate sector lauds Modi govt's maiden Union Budget

The corporate leaders lauded Union Finance Minister Arun Jaitley's Budget for focussing on improving the infrastructure sector by involving the private sector and also called it a 'pragmatic budget'.

 

Founder Chairman & Managing Director of GVK Power and Infrastructure Limited GVK Reddy said, "The Budget 2014-15’s specific thrust on the infrastructure sector is a welcome move. The assurance to ensure adequate supply of coal for thermal projects, the tax holiday for the power sector, allocation of over Rs 37,000 crore for roads and focus on developing airports under PPP for Tier I and II cities; all indicate the government’s recognition of the fact that a strong foundation of infrastructure can only help realise a country’s economic growth.”

 

Managing Director & Group CEO, Punj Lloyd JP Chalasani said, "With the Government’s proactive policies  and announcements made in the budget today to support the private sector’s involvement in Indian infrastructure, the future looks promising for the EPC companies in the domestic market. Government’s plans to invest significantly in the oil and gas, roads and highway, airport, harbor and port sector, will offer sufficient opportunities to players in this industry."

 

"Private Public Partnership (PPP) model in awarding several projects in the infrastructure space has taken on a very forward looking approach, encouraging the private players. We are very optimistic about reviving growth in the infrastructure and manufacturing sector," he said.

 

JCB India MD & CEO Vipin Sondhi opined,"Given that this Government has been in office for less than 2 months, no big bang reforms were anticipated. The Union Government recognizing the need for revival of investment cycle had already extended the Excise Duty Cut on Capital Goods for another 6 months in June, 2014 itself. 

 

"The Budget’s focus on infrastructure sector, encouraging banks to lend long term funds to infrastructure sector, extending the benefit of investment allowance to Small and Medium Enterprises and emphasis on manufacturing growth should help revive the capital goods sector. While PPP in relation to many new projects has been announced, however, a roadmap for execution of existing held up projects could have helped turn things quickly," Sondhi said.

 

Micromax Chairman Sanjay Kapoor praised Jaitley's effort and said, “The Finance Minister has made pragmatic choices around available resources and has articulated a road map towards reducing the fiscal deficit and fueling economic growth. While all of us hope he achieves the ambitious target of containing the fiscal deficit, executing it seems very challenging. His focus on giving fillip to the infrastructure seems exhaustive and he has rightfully protected the common man’s interest in his first budget."

 

In the view of the Union Budget presented on Thursday, Ravi Saund, COO, CHD Developers Ltd. however,said, "There’s no denying it’s a common budget, yet it’s difficult to prophesize at this moment. However, couple of reforms announced is a welcome move. It is positive for the housing sector, though the focus is clearly on affordable segment."

 

Managing Director and CEO, National Skill Development Corporation (NSD) Dilip Chenoy stated: "The present government has started with a very strong commitment to develop a robust and sustainable skilling ecosystem with the Prime Minister’s vision for building India on the 'Skill, Scale and Speed' plank.  As a clear reiteration of this commitment, the Finance Minister in his Union Budget speech today, has also provided this government’s full support to build the Skill India Mission and the announcement of National Multi-Skill Mission. How this unfolds in the coming months is something we need to wait and watch."

 

President, MCC Chamber of Commerce & Industry and MD, CenturyPly Sanjay Agarwal said, "This is no quick relief shot, but a long term medicine at the root for real solution. The focus on roads...low cost housing...housing....smart cities...will generate demand for all goods and jobs in medium and long term. This will give long term boost to all industries and common man." 

 

Welcoming the new government's budget, Fr.E. Abraham, S.J., Director , XLRI, said, "We welcome the Finance Minister's proposal to easen and simplify norms to facilitate higher education loans for higher studies. This is a step in the right direction as it will encourage students to dream and aspire to take up professional programs. The proposal to set up 5 new IIMs and 5 more IITs will definitely bolster the professional education ecosystem in the country and also help the respective states in their economic progress. It is heartening to note that the govt will be spending around Rs.28, 000 crores for sanitation in primary schools."

 

However, Amol Naikawadi Joint Managing Director, Indus Health Plus said, “Overall, the health market players may not be too happy since there aren’t any major reforms announced for the entire health industry. We have again failed to make government realize that it is importance to address the increasing health issues. Various non-communicable and communicable diseases are taking toll which affects the nation’s health and overall growth.”

 

Commenting on the budget,  Indian Chamber of Commerce (ICC) said it felt that the Union Budget 2014-’15 is an inclusive , pragmatic and progressive budget. 

 

"Push to FDI in Defence and Insurance, special focus on developing 100 Smart Cities, Agri Infrastructure, tourism infrastructure, national waterway,  warehousing capacity are some major diligent  steps that will lead to greater investors confidence and boost up economy’s growth," the Chamber expressed.

 

"Though big-bang measures or structural reforms which the Industry was ideally looking forward to, have not been brought in, the Budget looks like a balanced and pragmatic one with a focus on key areas," it said.

 

As the nodal Chamber of Commerce for the North East of India, the ICC said it is especially happy to see the special attention that has been given towards the development of the North East region in this Budget.

 

In the wake of the Union Budget presentation, Seshagiri Rao, Jt MD & Group CFO, JSW Steel commented, "The Finance Minister was entrusted with enormous responsibility to balance the fiscal prudence and growth stimulating initiatives. In this background the Finance Minister has done a commendable job."

 

Reacting on the budget, Arun Kumar Jagatramka, CMD, Gujarat NRE Coke Ltd noted, "The budget has been pro growth with a social face and the finance minister has tried to do things possible under the present circumstances and the prevailing challenges. The budget has aimed at bringing in rationalisation in taxation and a certainty in tax administration, notable being doing away with retrospective taxation in future. The focus on infrastructure both in national highways and in power sector as well as in urban infrastructure through smart cities is a much welcome step which has the potential to fuel future growth."

 

Anand Mehta, Partner (Pharmaceutical and Healthcare sector group),  Khaitan & Co. said, "The budget lays a lot of emphasis on spurring growth in the manufacturing sector. The investment allowance linked to the new investments in plant and machinery are likely to benefit pharma companies also.”

 

“The Government has hinted at supporting SEZs. Pharma companies setting up export units should be enthused by this intent, although the devil lies in the details," he said.

 

“The budget as proposed will encourage R&D. The Government has proposed to strengthen biotech clusters. Innovator companies are also likely to benefit from the proposed provision for refund of customs duty on the import of scientific and technical instruments," added Mehta.

 

Emami Group of Companies' Joint Chairman R S Agarwal said, "The maiden budget presented by the BJP led NDA Government is in overall a very good budget.  The new government deserves applause for presenting an inclusive and progressive budget within one month of its tenure.  The budget is aimed towards expansion of the country’s economy and develop a future roadmap for growth.  One must remember that the new government has a huge task of overcoming lot of problems that they have inherited as a legacy of the earlier government.  The budget has managed to address many concerns that have been raised frequently in the past by both industry and common people."

 

Bharat Chamber of Commerce President Sajjan Bhajanka said, "Given the constraints of resources and time, the Budget presented by the Hon’ble Finance Minister is one of the most pragmatic in recent years. The commitment of the Hon’ble Finance Minister in introducing GST and DTC and other fiscal reforms is evident from his taking the ambitious benchmarks of Fiscal Deficit and Current Account Deficit for 2014-15 set by the UPA-II as challenges. The much needed emphasis on ‘Ease of Doing Business’ has been reflected in the Hon’ble Finance Minister’s Budget Speech."

 

Praising the new budget, Vinay Jain (CMD, AVJ Group) said,"There are lots of positive things announced in the budget.  Special funds for banks to finance long term infrastructure projects are really positive.  FM increased the taxable income limit to 2.5 lakh from 2 lakh. 80 C limits increased to 1.5 lakh from Rs. 1 lakh. Interest exemption on housing loan increased from Rs1.5 lakh to Rs. 2 lakh. This is very much positive for the real estate sector as well as for the banking sector."

 

Piruz Khambatta,Chairman, Rasna Pvt.Ltd. said, "If the main focus of the budget  was to get confidence back on track  we have achieved it. At least we will see more investments from Indian companies as well as from abroad."

 

ICICI Bank MD & CEO  Chanda Kochhar said, "The budget has sought to lay out a prudent fiscal path for the country; and address existing issues that have halted infrastructure investment. The budget has announced a range of initiatives to boost investment & growth. The policy direction is clear, and as the decisions and plans announced today are executed, I am sure the country will move back towards a robust growth path."

 

Calling the budget positive, Sanjay Budhia, Managing Director, Patton, said, "This is a very positive Budget which paves way for unfolding India's growth story. It is Budget which is practical and sustainable." 

 

Aiming to take the growth of Indian economy to over 7 percent in next few years and reducing fiscal deficit, Union Finance Minister Arun Jaitley presented the Budget for 2014-15, the maiden of the Narendra Modi government, with a big focus on the rural and agriculture sectors and announcing a clutch of infrastructure schemes and measures to woo foreign investors by welcoming FDI in defence and insurance sectors.

 

Jaitley also raised the income tax limit for the common man to Rs 2.5 lakh from the existing Rs 2 lakh and did not make any changes in the direct taxes.

 

Jaitley announced an increase in the FDI in defence to 49% from the existing 26%. FDI in Insurance sector was also raised to 49 percent.