How some of the industry leaders are looking the Union Budget 2019

While the budget has been largely seen as a stepping stone for the future, there are certain misgivings too. Even the market closed on a low note on Friday,

Here are some excerpts from what the market leaders are thinking --

Ajay Piramal, Chairman, Piramal Group:

"The Union Budget 2019 is marked with a long term 10-year vision while retaining focus on the immediate priorities. The government’s roadmap to position the economy for future sustainable growth will resonate with both domestic and international stakeholders. India now approaching the global markets to raise sovereign debt, indicates the country’s readiness to be sized amongst the best in the world. This is a huge vote of confidence in the economy and its trajectory.

The focused impetus for sustainable job creation via targeted investment in infrastructure projects and other productive sectors of the economy, will have a cascading effect on secondary and tertiary employment. The mission to provide housing for all by 2022 has the potential not just for growth in downstream sectors such as cement and steel but also for overall job creation in these crucial industries.

We are happy to see the government signal its confidence for a well-financed, robust NBFC sector through the one-time six-month partial credit guarantee.  This development would be an important milestone for the NBFC sector that is crucial for the sustained growth of the economy. We welcome the regulations and norms that have been proposed by the Finance Minister on the NBFC sector that would raise transparency and reinstate trust in this vital sector."

Sanjay Budhia, Chairman-CII National Committee on Exports & Imports and MD-Patton:

"The Budget has given the emphasis on the basic fundamentals - Hygiene, Housing and Highways which reaffirms and echoes the evergreen truth  “मेरा भारत गांवों में बसता है”.

Reduction in Corporate Tax from 30% to 25% for companies upto turnover of Rs 400 Cores will cover 99.3% of the Corporate sector which is a very welcome move to reduce tax burdens on Small and Medium Enterprises and this money can be ploughed back for enhanced economic activities.

Recognising the role of SME, giving the much required relief of two per cent interest subvention for MSMEs on fresh or incremental loans and the facility to make timely payments on Centralised portal are very positive steps."

Mihir Vora, Director & Chief Investment Officer of Max Life Insurance:

"The proposal to increase minimum public shareholding of listed companies from 25% to 35% will benefit India in the long –term as the free-float increase will lead to a higher weight for India in the international benchmarks. In the short-term, it may create an overhang of stock supply if the timeframes are short-term. 

The Budget announcements have many practical steps to improve administrative ease and tax confusion e.g. the clarification on Angel Tax for investment in start-ups, the interchangeability of Aadhar and PAN card, no charges on electronic transactions etc. 

Overall, there are no items which may impact the stock markets in a significant way in the long-term. However, since the continuing slowdown in private-sector investment and real estate is slowly impacting consumption also, equity markets were hoping for much more support to these segments to kick-start the recovery process. The correction in the markets is to some extent due to such expectations as the budget benefits, while being in the right direction, were not as substantial as hoped. The bond markets, however, reacted very positively with yields falling on hope of overseas borrowing, restricted Government borrowing plan and no initiatives to boost immediate consumption."

Kunal Bahl, CEO & Co-founder, Snapdeal:

"Start-ups are a barometer of the positive energy and hope in an economy. The various measures announced in today's budget seek to nurture this spirit in various ways - from angel tax assurances to easier funding for a self-help group in a village. From faster loans for a MSME to helping an artisan with patents and GI registration. Start-ups create not just jobs and shareholder value, they also build the foundation for the next wave of entrepreneurship."

Prashant Tripathy, Managing Director and Chief Executive of Max Life Insurance:

“The union budget can be seen as a balanced one that aims at driving inclusion through various developmental schemes and government initiatives, especially for lower income groups of society across urban and rural areas. The reduction in fiscal deficit from 3.4% in the interim budget to 3.3%, is a movement in the right direction. The 100% FDI proposed for insurance intermediaries, would help expand the reach of life insurance and bring in greater professionalism through infusion of global best practices in the country. On the banking front, the reduction in NPAs and the proposed infusion of Rs.70,000 crore for public sector banks’ recapitalization will improve credit availability. The Finance Minister has proposed multiple measures to support NBFC sector and boost to affordable housing which will enhance ease of living for Indians in the years to come. The impetus being proposed for start-ups in the form of relief from taxation scrutiny will strengthen the entrepreneurship ecosystem in the country. The proposed interchangeability of PAN and Aadhar will offer greater convenience to taxpayers."

Dr. Kuldip Maity, MD & CEO, Village Financial Services Ltd:

“We welcome the move by hon’ble Finance Minister Ms. Nirmala Sitharaman to provide a one-time six-month partial credit guarantee to PSBs for first loss up to 10% for purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 lakh crore.

This step is aimed to provide much needed impetus to the public sector banks to buy pooled assets of NBFCs. Considering that it will cover first loss upto as high as 10%, this should push the PSBs to infuse liquidity to NBFCs by way of pool buyout. However, since the Finance Minister mentioned 'high rated pooled assets of financially sound NBFCs', it would be interesting to see if there is any further clarification with respect to qualifying criteria for this scheme."