Nikhil Arora, Vice President and Managing Director, GoDaddy India, reacts to Budget 2021
"The Union Budget 2021 is rightly focussed on reviving the country from the aftermath of COVID-19 pandemic andensuring sustainable economic growth. The proposed measures and reforms to boost infrastructure, healthcare, aggressive PSU disinvestment and boost credit flow by taking out the toxic assets of the banking system will definitely help propel the economy towards faster recovery and growth. We also applaud FM’s proposal of one year tax holiday and capital gains exemption, which will provide a much-needed post-pandemic boost to the upstarts. The announcements of incorporating one-man companies with no restriction in paid-up capital and turnover, increase in the MSME budget to Rs 15,700 crore, as well as an update in the definition of small companies under Companies Act, 2013 will also prove to be beneficial for Indian MSMEs and startups. Having said that, given the growth of digital adoption and the role of technology in accelerating Digital India and Atmanirbhar Bharat vision, both businesses and individuals particularly in Tier II and Tier III cities would value greater impetus on digital skilling and improved digital infrastructure to support innovation and the new normal work-from-home culture. As the country gears up to rise from the global pandemic and chart the next chapter, GoDaddy will continue to work in tandem with the government to help bolster India’s entrepreneurial and small business ecosystem, by providing all the help and tools needed to succeed online."
Prasoon Chauhan, Founder & CEO, BlackOpal comments on Budget 2021
"After the announcement of easing norms for InvITs/REITs, we are hoping that steps will be taken to regarding the lock-in period of units allotted on a preferential basis, and pricing related to the allotments arising out of the approval of the same unitholders. We are sure that the fresh norms will make more REITs enter the market as the demand for commercial properties is already high, especially after the pandemic situation that has led people to realize the sound investment opportunity that the commercial segment offers. The FM has also announced a new asset reconstruction and asset management company, which is set to ease out the liquidity issue in the market.
Overall, the Budget focused on jobs and fund infusion in MSMEs, which would help the market recover. The real estate sector, being an inseparable part of the economic growth, will also gain from the measures taken to expedite growth in other industries."
Sanjeev Krishan, Chairman, PwC in India, reacts to Budget 2021
“The FM has done a prudent job of prioritising spending to address immediate needs and mid to long term goals across critical areas. Privatisation, substantial increase in FDI in the insurance sector as well as other announcements around asset monetisation, INVITs/REITs are progressive measures that will definitely have a far-reaching positive impact on creating a conducive ecosystem for business and help address some legacy issues. The FM had an unenviable job of striking a balance on the fiscal deficit front without altering tax rates to fuel economic growth and must be complimented for having achieved it. The thrust on digital, affordable housing, inclusive growth, ease of doing business, innovation, and R&D are steps towards making India future-ready. However, operational detailing and seamless execution will be critical.”
Charu Noheria, Co-founder and COO, Practically reacts to Budget 2021
"The budget for FY 2021-22 has been a balanced one. The decision to strengthen the education sector as per National Education Policy has certainly been one of the highlights of the Union Budget 2021. We welcome the government’s move to set up a Higher Education Commission of India and its plans to integrate nine cities, including Hyderabad, our home market, under an umbrella structure for higher education institutions to allow for better synergy among them. Also, the government’s decision to extend the tax holiday by one more year, to March 2022 along with capital gains exemption will help India's startup ecosystem deal with the pandemic blue"
Rahul Agarwal, CEO & Managing Director, Lenovo India comments on Budget 2021
“The six pillars of the Union Budget 2021 add enormous value to the economic relief post the pandemic issues and paint a futuristic picture for the new year. It has managed to address some of the key issues around Atmanirbhar Bharat, education and Digital India that presents significant business opportunities for global corporates such as Lenovo. With the PLI scheme announced along with the increased focus on ‘Make in India’ in this budget, we are confident that it will encourage local manufacturing, and further bolster the local PC market. Lenovo will also support the government in enriching India’s economy, by boosting digital infrastructure in the field of education and additional focus on promoting inclusive development. The national education policy also creates an opportunity to build the Indian EdTech ecosystem to make it best across the globe for research & innovation, and empowers the citizens to scale up their skills.”
Vishal Bali, Executive Chairman, Asia Healthcare Holding reacting to Budget 2021
“ Healthy India is core to India’s economic growth reflects in the 137% increase in outlay for health at Rs 2,23,846 cr in budget 2021. The focus on healthcare with Atmanirbhar Swasth Bharat Yojana with an outlay of Rs 64, 180 CR over 6 years shows that healthcare capacity building is now a key priority for the Govt. The 35000 cr earmarked for COVID 19 vaccination drive will create a safety net for the country. The overall capital expenditure increase of 26% should drive infrastructure acceleration, the much-needed GDP growth driver. The insurance sector which is an important pillar for any country should see exponential growth with the enhancement of FDI limit to 74% from 49%. Overall a forward-looking budget to drive the 11% GDP growth for India in FY22 as pegged in the Economic survey 2020 ”
Dinesh Kumar Khara, Chairman, SBI reacts to Budget 2021
“The Union Budget has unveiled a set of well-crafted and robust policies that encompasses the vision of an Atmanirbhar Bharat. The Budget has rightly envisaged a substantial jump in capital expenditure that has a strong multiplier impact on the economy. The decision to open up the insurance sector, setting up a DFI and an ARC, privatizing a couple of public sector banks are all positive steps for the financial sector. Social sectors have received large attention in the budget with a thrust on developing a health and education infrastructure on a mission mode. This will augment human capital, an essential prerequisite for inclusive growth. The Budget has unveiled a flurry of steps covering all infrastructure sectors that are force multipliers and generates employment.One of the cornerstones of this budget is fiscal numbers that are transparent and has the potential to surprise us on the upside. In principle, the budget has rationalized the off-balance-sheet borrowings and headline fiscal deficit numbers, which will overtly please markets and even rating agencies. The fact that the expenditure announcements in the budget have been matched with the status quo on taxes will please everyone and bolster market sentiments.”
Ravindra Pai, Managing Director, Century Real Estate Holdings reacts to Budget 2021
“We were hoping the budget would include steps to address the immediate liquidity issues and changes in the GST regime. The Government, however, has focused more on affordable housing while taking far-sighted measures. With the establishment of a professionally managed DFI, we expect infrastructural improvements leading to more road projects and eventually more housing developments. The health and insurance benefits for construction workers and migrant labourers will support the gig economy and ensure availability of labour supporting the timely completion and delivery of projects. The extension of tax holiday for affordable housing and increase in the safe harbour limit will definitely help in augmenting housing demand in the mid-income segment. This year’s budget, though unlikely to have any immediate impact, will aid the sector in the long-run”
Supria Dhanda, Vice President and Country Manager for India, Western Digital comments on Budget 2021
I would like to congratulate the Government on its first paperless budget to push India in its digital journey. The economic survey highlighted India’s aspiration to compete on Innovation with the top ten economies. Allocation of INR 50,000 crore for the National Research Fund for next five years is a definite step towards boosting the research ecosystem in a coordinated way. Focus on Innovation and R&D, coupled with the PLI for electronic manufacturing schemes lays down a very strong foundation in building a self-reliant digital India. We are confident that the technology industry will join hands with the Government in its plan to enhance manufacturing capabilities and expand R&D centres.
Ajay Shriram, Chairman & Sr Managing Director – DCM Shriram Ltd reacts to Budget 2021
"The Union Budget 2021-22is a growth-oriented budget wherein the Honourable Finance Minister has given a thrust upon two sectors: Infrastructure to ensure impetus to economic growth and healthcare tofight against the pandemic. The acceptance of a fiscal deficit of 9.5% and giving a target of bringing it down to 4.5 % in 5 years signals the government’s stance to support a recovery after the pandemic. Focus on Capital Expenditure across the board is a positive sign which will stimulate growth by creating demand, jobs and incomes. We need more focus on ease of doing business going forward also."
Reactions by Abhay Soi, Chairman and Managing Director, Max Healthcare on Budget 2021
"We welcome the thrust of Union Budget 2021 in reviving the economy. The focus on healthcare and the initiatives announced are a gigantic step in the interest our countrymen. Healthcare has been given the status it deserves. The announcement of the centrally funded scheme -- Aatmanirbhar Health Yojana -- with an outlay of Rs 64,180 crore over six years in addition to National Health Mission is a welcome step towards strengthening primary, secondary, and tertiary healthcare. However, the manner in which this allocation will be made in the next five years will be critical. Also, some allocation of funds for the private healthcare sector would only boost it further since a healthy public-private partnership is the need of the hour today.
This special attention given to the healthcare sector, increasing the overall outlay to health and wellbeing by more than 135% over last year are a big step in the right direction. The allocation of 350 billion rupees towards COVID-19 vaccination is also a welcome step. Setting up of 15 Health Emergency Centres shows that the government wants to be future-ready in handling any further such crises situations. It is laudable that government has put healthcare at the forefront. This would not only make quality healthcare accessible and affordable it will also help standardize healthcare infrastructure across the country. Overall, the budget has been positive and refreshing in its scope and scale."
Reaction by Nirav Karkera, Head of Research, Fisdom on Budget 2021
"The budget has been an act of impeccable balance having financial prudence and booster shots on either end. The budget revolves around reviving growth through focused deployment of funds which can be expected to create a larger wave of broad-based economic growth.
The setting up of a Development Financial Institution with a target of building an INR 5 Lakh Crore debt portfolio, major allocation towards capital expenditure out of the budget allocated to railways, along with creation of headroom for departments willing to undertake productive capital expenditure will be key in spurring overall economic growth.
The proposal to set up an asset reconstruction unit to buy & resolve stressed portfolios along with a public sector bank recapitalisation tranche underway reflects the government's commitment to an economic rebound. While there is not much for the common Indian to talk about, the results of larger developments are expected to benefit the on-ground employment, income and investment landscape in a significantly positive manner.
Considering that the budget surprised capital markets positively, we can expect broader indices to recoup grounds lost to pre-budget nervousness immediately. The government's roadmap to reinstating fiscal stability and commitment to economic growth should welcome more foreign portfolio investments into Indian equities. Infrastructure, Healthcare & Financial Services can be expected to be in first order of directly benefitting from the announcements. If earnings continue to hold promise the way it has recently, the stage may be set for a broader recovery across equity segments.
For fixed income investors, we maintain our view that portfolios should be allocated towards the shorter end of the curve as the government trades off some financial stability for growth."
Reaction from Anirban Mukherjee, CEO, PayU India on Budget 2021
"PayU is proud to have led the digital payments space in India and welcomes the forward-looking budget promoting this space. We believe that the Rs1,500 crore fund will enhance penetration of digital payments, encourage greater acceptance, enable merchants to grow, and boost the digital payment space. The FM has addressed critical sectors and the measures are likely to boost the economy"
Budget 2021 reactions from Aalok Kumar, President & CEO, NEC Corporation India.
"The Government'scommitmentto streamlining the country's infrastructurefrom roads to railways to shipping to waterways to build a new India is consistent and commendable. The infusion of multiple thousand crores into the construction of national highway projects and dedicated freight corridors reflects the creation of a new connected India. Linking cities through metro lines and increased access to travel facilities will also boost the much-needed employment generation.While we were looking forward to specific initiatives and encouragement for the technology industry, the continued focus on driving digital transformation using artificial intelligence, machine learning, and digital records in governance,smart cities, transportation, logistics and aviationwillhave a contagion impact andempower the economy in the long run. We envision India's future under the spirit of ‘AatmaNirbhar Bharat' and look forward to partnering with the Government in meeting the relevant targets."
Dr. Keshab Panda, CEO & MD, L&T Technology Services on the union Budget 2021
The move to provide greater impetus to India’s manufacturing sector with outlay of almost Rs 2 trillion over the next five years is indeed a welcome move. We are hopeful, this will pave the way for enhanced adoption of digital engineering capabilities by domestic players, especially in the Industry 4.0 segment, to give them a global edge. With patents and innovations being at the core of our proposition as a pure-play engineering services provider, it was encouraging to know that Innovation and R&D was classified under the six pillars of focus for this year’s union budget. Unlike last year where explicit mention to initiatives such as National Mission on Quantum Computing and Technology were announced, one would have hoped that this year’s budget would have made provision for further focus.
Budget 2021 reaction from Surojit Shome, Managing Director and CEO – DBS Bank India
“The Union Budget proposals for FY 21-22 outline several landmark proposals on much-needed reforms to fund a strong growth oriented multi-year program of capex-led recovery post a black swan event.It is encouraging to see the FMtarget policy reforms and boost capital infusion into the infrastructure, SME and start-up sectors recognising them as engines of growth in the post-pandemic revival. The thrust on digital payments, e-resolution of tax related disputes and the first virtual census also underlines the Government’s focus and continued thrust on digital infrastructure.”
Budget 2021-22 reaction by Nagesh Basavanhalli, Group CEO & MD, Greaves Cotton Limited
“Long term progressive budget built on a sound strategy for improving national health and economic recovery. The government’s resolve to support the manufacturing and infrastructure sector is commendable. The emphasis on government spending in building pan-India transport and allied infrastructure should have a positive impact in reviving consumer demand for vehicles. The allocation of a sizeable sum towards the PLI scheme will help the industry create jobs and boost economic growth. The recognition of the manufacturing sector as an integral part of the global supply chain and to grow the same in double digits, will be a boost to the industry. While the auto sector would have liked to see more direct measures in the budget, however, the Scrappage policy is certainly a step in the right direction. This is a step in the right direction for both ecology and economy. The focus on rural and Agri credit growth will also have a cascading effect on the auto sector.”
Reaction from Paytm on Budget 2021
Vikas Garg, Chief Financial Officer at Paytm said, "The Finance Minister has presented a balanced budget that is aimed at maximum growth of all sectorsin the coming year. The Rs.1500 crore proposed scheme to incentivize digital payments is a welcome move that will accelerate the growth of cashless transactions in our country. During the pandemic, digital payments emerged as one of the key enablers of empowerment at the grassroots and brought millions of people under the fold of the formal economy. Government's continued emphasis on increasing investment in Infrastructure, Insurance and digital payments will ensure financial inclusion of the masses."--Vikas Garg, Chief Financial Officer at Paytm.
Reaction from Kunal Bahl, Snapdeal on Budget 2021
“The Budget 2021 holds out various positives for the start-up sector. The move towards providing social security benefits for gig workers will add a much-needed safety net that will help this sector grow in a sustainable way and help the many millions that are a part of it. Reducing residency requirements for founders will allow talent to flow & will boost the start-up ecosystem. Extension of tax holiday for start-ups by 1 yr, boost to digital payments, increasing threshold for small businesses to Rs 2 Cr are other gains for the startup sector.”-- said Kunal Bahl, Co-Founder and CEO, Snapdeal
Reaction from Great Learning, an EdTech firm on Budget 2021
“We welcome the allocation of Rs. 3000 crore towards realignment of the existing scheme of the National Apprenticeship Training Scheme in order to provide post-education apprenticeship to engineering graduates and diploma holders. It will help create talent that is employable and equipped with the right set of skills for the industry ensuring professionals are job-ready. The moves to join forces with UAE to benchmark skill qualification and introduction of collaborative training programs with the Japanese workforce are also steps in the right direction. This will help us keep our skilling endeavours in sync with global trends,"--Mohan Lakhamraju, Founder & CEO, Great Learning
Reaction from LEAD School, an EdTech firm on Budget 2021
“The year 2020 was a catastrophic one for the education sector with the Covid-19 pandemic forcing schools and education institutions to shut down. I commend the finance minister for giving a boost to the adoption of National Education Policy and strengthening 15,000 schools in the country is a right move in that direction. Tribal students have suffered the most due to the pandemic with no access to quality education and lack of appropriate infrastructure to adopt online learning in a school-from-home environment. The Government’s target of establishing 750 Eklavya model residential schools in tribal areas will enhance the quality of learning and enable them to avail learning opportunities and help in the overall development. I am confident that the Budget will bring a positive change in the lives of SC/ST students as it aims to bridge the learning gaps and make education affordable and accessible for a larger audience.”--Sumeet Mehta, Cofounder & CEO, LEAD School
Reactions from Simpl on Budget 2021
"Budget 2021 is a Budget of hope towards realizing India’s growth aspirations, strengthening the start-up ecosystem and boosting the digital-first economy. We believe Budget 2021 aligns to the urgent need of the hour to shift focus from survival to revival of economic growth. ‘’
The following key Budget provisions will benefit the start-ups, fintech and digital payments space:
- Recognizing the crucial role of fintech and the huge jump in digital transactions, the FM has allocated INR 1500 cr towards financial incentives to promote digital payment modes.
- Start-ups are innovation hubs. To further encourage the start-up ecosystem to thrive, the Budget has extended the eligibility for claiming tax holiday for start-ups till 31st March, 2022.
- Additionally, to ensure access to funds, the capital gains exemption for investment in start-ups has been extended till 31st March, 2022.
- To ease the process of setting up of start-ups, the Budget incentivizes the incorporation of One Person Companies (OPCs). This would encourage entrepreneurs to grow as OPCs, without any restrictions on paid-up capital and turnover, with the flexibility to convert into any other type of company at any point of time.”--Nityanand Sharma, Co-Founder & CEO, Simpl
Reactions from Home Credit India on Budget 2021
“Budget 2021 by Finance Minister Nirmala Sitharaman is pragmatic, positive, and committed to the progress of the economy that was impaired by the Covid-19 pandemic. In the current market scenario, Digital payments have witnessed a significant increase, and with the allocation of Rs. 1500 crore to strengthen the digital payments network across the country, we’re optimistic that this push towards digitalization will be a progressive effort to enhance the digital payment landscape in India. With a major focus on healthcare and infrastructure, this year’s budget allocation with an increased funding under MGNREGA scheme by Rs. 19,091 crore due to Covid-19 outbreak, will boost the rural economy in financial year 2022.
The new measure to set-up a bad bank to effectively deal with non-performing assets of the financial sector should be able to revive the financial institutions of the country. Proposed use of data analytics, Artificial Intelligence and Machine Learning is a step in the right direction towards strengthening corporate governance when instances of fraud have become increasingly common,”---Ondrej Kubik, Chief Executive Officer, Home Credit India.
Reaction from Dhruv Agarwala, Housing.com on Budget 2021
“Amid a sharp improvement in consumer sentiment with regard to property purchases post the start of the COVID-19 vaccine rollout, the government’s move in the Budget to extend the benefit of additional Rs 1.5 lakh tax deduction on home loan interest, until March 31, 2022, will act as a further impetus to the residential property sector. This move will augur well, especially for the affordable housing segment, which will also benefit from the decision to offer a tax holiday for affordable housing projects for one more year, to boost supply.
The support announced today by the Honourable Finance Minister for rental housing too will go a long way in boosting the real estate market and will ease a lot of pressure points in the rental home market. This will also help migrant workers to a great extent and will support them in remaining in metros and other big cities during times of financial hardships such as the one presented by the Covid-19 pandemic. However, the long-standing demand of the real estate industry to expand the definition of affordable housing so as to include homes priced more than Rs 45 lakhs in big metro cities, has sadly not been addressed.
The infusion of lakhs of crores into India’s infrastructure segment, with a focus on improving connectivity, will be particularly beneficial for India’s housing sector. The proposed debt financing for REITs and InvITs, and the setting up of the Development Financial Institution for augmenting funds for infra and the real estate sector is expected to provide a major fillip to the sector, and will attract more investments in the sector.
The proposed extension of the tax holiday for start-ups by one more year, a tax exemption for relocating funds to IFSC, and a tax holiday for the aircraft leasing business in GIFT city, are some of the other measures that would also help India’s real estate sector as a whole.”--- Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com
Reaction from VideoMeet startup on Budget 2021
“The announcement by the Honorable Finance Minister regarding the startups was much required at the moment and will help the fledgling startups with meager resources to continue with their business operations without worrying about the compliance with complex taxes. The announcement comes soon after Prime Minister announced setting up of Rs 10,000 crore fund for seed funding of startups. These moves by the government make the intent of the government clear that it wants to promote entrepreneurship and help the enthusiastic young entrepreneurs in the country. The setting up of a separate administration structure to promote ease of doing business is a laudable move by the FM. Also, as predicted startups were given importance under this budget, and the industry is poised to be greatly benefited with the Tax holidayextendedbyanother yeartill 31 March 2022”---Ajay Data, Founder & CEO, VideoMeet.
Reactions from Sashank Rishyasringa, Capital Float on Budget 2021
“The Union Budget 2021 is a positive one with a key necessary focus on rebuilding the Indian economy and a demonstration of strong commitment to a digital future. The lack of a Covid cess will ease tensions of rising tax levies. The finance minister’s proposal to facilitate the development of a world-class fintech hub in Gujarat International Finance Tec (GIFT) city will be appreciated by Fintechs locally as well as nationally. Allocation of Rs. 1500 Cr to promote digital modes of payment and an extension of capital gains exemption for investing in start-ups by one more year will be a growth accelerator for the Fintech industry. The new allowance for Startups and innovators to form 1-person companies without restrictions, paid-up capital or turnover norms also will prove a major boon.
Capital Float lauds the structural reforms put forth under the Aatmanirbhar Packages, allocating Rs. 15700 Cr toward MSMEs, a much-needed respite to an industry that was so brutally affected by the pandemic. This will not only aid those looking to restart their businesses but also support sustainable growth in the industry.”--Sashank Rishyasringa - Co-Founder & MD - Capital Float.
Reactions from BioCon on Budget 2021
"Overall, a reassuring Budget with no negative surprises that has buoyed overall sentiment,"--Kiran Mazumdar Shaw, Executive Chairperson, Biocon.
Comments from Mahindra Group chairman on Budget 2021
"In a time of unprecedented economic stress, the Govt's responsibility was to spend enough to revive the economy or else face enormous human suffering. So I had one expectation from this budget: that we should be very liberal in terms of the targeted fiscal deficit. Box ticked,'--Anand Mahindra,Chairman, Mahindra Group. Credit: PTI
Reaction from Bharat Biotech on Budget 2021
"It’s a great step ahead, and far-reaching budget announcement, providing ₹35,000 crores for Covid-19 vaccination in 2021-22. The Finance Minister's commitment to providing more funds in order to contain the Coronavirus pandemic spread in the country and provide an effective, smooth path for the vaccination scheme will help contain, and lead our nation towards accomplishing a covid-19 disease-free Bharat,”--Dr. Krishna Ella, Chairman & Managing Director, Bharat Biotech
Reactions from Arjun Bajaj, Videotex International on Budget 2021
"The budget of 2021 is well designed to give a boost to local manufacturing and improve the infrastructure of the country. More details will be made available and cleared in days to come for the exact benefits to the manufacturing sector. However, no particular exemption of duty reduction of OC and GST reduction on greater than 32” sizes of TV was announced which was expected this year to boost sales"-- Arjun Bajaaj, Director, Videotex International
Reaction from Bhavin Turakhia, Zeta on Budget 2021
“We welcome the announcement by our honorable Finance Minister Nirmala Sitharaman to introduce an Rs1,500 crore-scheme that will provide financial incentives to promote a digital mode of payments. This move will help in enhancing financial inclusion and building a contactless economy in the country. The unprecedented pandemic gave digital payments adoption a much-needed boost and this year will be a landmark for India in terms of taking definitive steps towards using the power of digital technologies. We expect that this investment will encourage both Private and Public Sector banks, FIs and fintech to adopt modern technologies so they can provide future-ready, mobile-first, secure and state-of-the-art digital products and services to customers.”- said Bhavin Turakhia, Co-founder and CEO, Zeta.
Reactions from Serum Institute of India on Budget 2021
"Globally, spending on healthcare infrastructure and vaccine have given countries and their economies the best bang for their buck. Investments in these areas have prevented hospitalizations and resulted in a healthier and more productive workforce, thereby leading to an efficient economy. Therefore we welcome the FM's emphasis on healthcare spending, and immunization especially for COVID-19 and the pneumococcal vaccines as this will help India recover rapidly from this pandemic. Hopefully, this will also encourage more innovation and expansion in the sector."-- said Adar Poonawalla, CEO, Serum Institute of India
Reaction from Indian Pharmaceutical Alliance on Budget 2021
“The FY22 Budget is in line to support recovery of Indian economy while keeping the overall policy stability and fiscal discipline in perspective. COVID 19 pandemic is an unprecedented time and has brought importance to healthcare in India. The focus on healthcare infrastructure in FY22 Budget is a positive step towards growth with a 137% increase in allocation to the sector at Rs 2,23,846 crore. The allocation of INR 64k Cr (over 6 years) on the PM Atmanirbhar Swasth Bharat Yojna will help boost the healthcare infrastructure across primary, secondary and tertiary care and the Vaccination program is well-funded with over INR 35k, it will help the country address the pandemic. All these initiatives are pointers to increased investment in healthcare infrastructure and will strengthen the sector going forward"--Sudarshan Jain, Secretary-General, Indian Pharmaceutical Alliance
Comments from Motilal Oswal
“The FY22 budget has been much better than the market’s expectations. The feared and anticipated measures around Covid-Cess/higher capital Gains tax/Wealth Tax etc did not materialize. This will provide a huge relief to market and economy and help in sustaining the buoyant sentiments in the economy. Government has clearly articulated the focus towards Infra and Capex spending with five key measures: [1] Capex spends proposed to go up by 26% in FY22 vs. FY21 RE [2] Setting up of Development Financial Institution [3] Setting up of ARC/AMC to deal with stressed assets [4] Asset monetization plans in various segments and [5] List of CPSE’s for divestments. We believe this will push the CAPEX spending in the economy and augur well for the overall economic revival of India. The significant increase in allocation to the Healthcare sector should lift the general well-being in the economy, in our view.
Separately, the honourable FM also announced several measures for relaxation of compliance and procedural burdens in multiple spheres of activities (taxation being the most prominent).
The extension of tax exemption schemes in Affordable Housing is also welcome as it can provide a good multiplier effect on the GDP.
All in all, a very good budget which avoids the pitfalls of raising taxes and at the same time provides a boost to the CAPEX/infra spends in the economy”--Motilal Oswal, MD & CEO, Motilal Oswal Financial Services
DH Sparks | Decoding the 'bahi khata' of Union Budget 2021
Comments from Lenovo Data Center Group on Budget 2021
“This is a pro-growth, pro-technology budget with a vision to disinvest where required and re-energize infrastructure, healthcare, banking, and agriculture sectors through numerous employment and capital generating reforms. There is a strong focus on Digital India be it through setting a fintech hub at GIFT city, enhancing digital payments and use of AI, ML, etc in governance, or making tax appellate faceless and tech-enabled – all provide a solid foundation for a forward-looking data-economy--” Vivek Sharma, MD - India, Lenovo Data Center Group.
Comments from TFCI Ltd
“Budget 2022 indeed provides a well chartered framework to boost the travel sector. Higher allocation of ₹2,83,846 lakh crore for health and wellness, which also includes ₹35,000 crore for Covid-19 vaccines promises to ensure fast rollout of mass vaccination and restoring normalcy sooner than expected. This will give a much need boost to the travel & tourism demand in the coming year. Furthermore, greater emphasis on health infrastructure also positions India as the global wellness destination of tomorrow. A greater emphasis on debt financing, coupled with the budget’s reformist tone including measures such as higher disinvestment target, raising of farm income, sops for affordable housing and various other initiatives to give an overall boost to the economy and spurring consumption & investment. These reforms & growth-oriented initiatives are all set to position India as an evolving global tourism hub and drive higher demand for funding propelling the NBFC sector”-- saidAnirban Chakraborty, Managing Director & CEO, TFCI Ltd.
Budget 2021 reactions from J Sagar Assosciates
"The budget speech expectedly has given a strong signal for infrastructure development focusing on actualizing the ambitious national infrastructure pipeline targeting an investment of Rs.111 lakh crores over 5 years. The signal comes from the announced budgetary allocations and decisions (a) central allocation of Rs5.54 lakh crores, (b) state allocations of Rs.2 lakh crores, (c) announcement to tap into budgetary resources of PSUs and wide-ranging InVITs monetising assets in highways, power transmission, gas pipelines, dedicated freight corridors, airport. The above announcements are strengthened by announcement of establishing Bad Bank in nature of AMC; a development financial institution with a seed investment of Rs.20,000 crores and a target to be build a lending portfolio of Rs. 5 lakh crores in 3 years; an extensive disinvestment program with target of Rs.1.75 lakh crores; zero coupon bonds that will help arrange the infra financing. The devil lies in the details and the success in reviving the economy would depend on effective structural reforms in infrastructure sectors removing barriers to growth + how the government goes about monetising the land bank and assets held by PSUs. "-- said Amit Kapur, Joint Managing Partner, J Sagar Associates
Reactions from Anand Rathi Securities
"The indications are that the government is going to do more to promote growth rather than maintaining fiscal discipline. This is a welcome move as it will have a positive impact on growth. Also, we are seeing a lot of measures on conditions of doing business which was required. The intent for reforms is also strong."-- said Sujan Hajra, Chief Economist, Anand Rathi Securities.Credit: Reuters
Comments from L&T Financial Holdings
"A strong capex push of 5.54 trillion rupees ($75.76 billion) is growth positive. This, combined with the enhanced spending on the health sector, will go a long way in supporting economic recovery. However, the actual revenue generation, both via tax and non-tax receipts during FY22 will be instrumental in the management of fiscal situation."-- Rupe Rege Nitsure, Group Chief Econnomist, L&T Financial Holdings.Credit: Reuters
Comments from KPMG
"To address concerns around asset quality, credit loss and liquidity stress, this budget has been proactive to infuse additional capital of 200 billion rupees to PSU banks for providing continued credit access to wholesale and retail borrowers, and therefore push growth agenda."--Rajosik Banerjee, Partner and Head, Financial Risk Management. KPMG, Mumbai. Credit: Reuters
Bengaluru Central MP, PC Mohan had this to say on Namma Metro fund allocation
It would be good if duty imposed on raw materials was eased- TCL
"We do welcome the recent PLI scheme of the government. However, we need to ease up the duty imposed on raw materials keeping in mind the make in India thought. We should also be getting added incentives so that transformative measures can be taken. The industry contributes 25% of the country's GDP," -- saidMike Chen, General Manager, TCL India
National Language Translation Mission is a much-needed effort
"The announcement of the National Language Translation Mission is a much-needed effort by the government to reach our citizens in the language they understand. At Indus App Bazaar, the usage of apps in Indian languages on our platform has increased 2.2 times last year. We believe that with an enhanced app store ecosystem we will be able to break linguistic barriers and adding more value to the next half a billion Indian customers. Moreover, for Atma Nirbhar Bharat to be successful, the focus should be on technology innovation as a whole. We appreciate the government’s focus on innovation and R&D in the budget 2021,"-- saidRakesh Deshmukh, co-founder and CEO, Indus OS.
Budget 2021 is pragmatic and positive of health care sector
"This year’s budget by the Hon’ble Finance Minister is pragmatic, positive, and committed to the healthcare sector which needed a deliberate boost post unprecedented virus outbreak last year. The announcement of a centrally funded scheme - Aatmanirbhar Health Yojana - with an outlay of Rs 64,180 crore over six years in addition to the National Health Mission is a welcome step towards strengthening primary, secondary and tertiary healthcare in the country. Setting up of 15 Health Emergency Centres shows the government’s intent to be future-ready to address any healthcare crises. It is commendable that the government has put healthcare on the forefront, putting the focus on curative and preventive health and wellbeing. The allocation this year is likely to be around Rs 2,23,846 crorewhich is whopping over 130% rise from the budget last year. The proposals would make quality healthcare accessible and affordable, besides standardizing healthcare infrastructure across the country"-- saidHarshit Jain MD , CEO and Founder, Doceree.