Industry experts all praise for the Budget

ST CORRESPONDENT
Saturday, 6 July 2019

“This reinforces our approach of going beyond just women-centric policies to building women-led movements. Further, the initiatives for ease of access to credit and working capital for MSMEs are welcome and will be beneficial for the overall start-up ecosystem,” added Gupta.

PUNE: Industry experts have pointed that on a macro level, the Union Budget focuses on solving current issues bothering the economy like that in the banking sector. It also takes care of housing demands of middle class segment. Experts have also pointed that the budget is citizen friendly and also takes environment and economic development together.

Speaking on the Budget, Vishal Gupta, CEO and Co-Founder of Momspresso, said that the decision to create a committee to evaluate and suggest measures to boost women’s welfare is commendable. “This reinforces our approach of going beyond just women-centric policies to building women-led movements. Further, the initiatives for ease of access to credit and working capital for MSMEs are welcome and will be beneficial for the overall start-up ecosystem,” added Gupta.

Another expert, Gautam Thapar, CEO, Thapar Builders Private Limited, stated that affordable housing is the focus of the government and it is a positive sign for the real estate sector. “Middle class can dream of an affordable home without worrying too much. Easy of doing business is also a huge benefit for everyone. We are looking forward to work with the government in near future to make sure that the Indian real estate sector can boom as soon as possible,” added Thapar.

Sharing his views about the impact of the Budget on automobile sector, Martin Schwenk, Managing Director and CEO, Mercedes-Benz India, said, “The decision to increase the customs duty on automotive parts was not expected and it is not going to help create demand in the industry, which already is facing continued strong macro-economic headwinds, resulting in subdued consumer interest. The increase in customs duty 

coupled with increased input costs due to fuel price hike, could lead to an increase in the price of our model range. Though the Budget has given a boost to green mobility, we wished for the inclusion of Plug-In-Hybrids for duty exemption as well, as that would have further given a push to the green mobility efforts.”

Sharing his views, Hitesh Gajaria, Partner and Head of Tax, KPMG in India, said, “Direct tax proposals did not see any material changes. Extension of lower Corporate Tax rate of 25 per cent to companies with turnover up to Rs 400 crore, extending few sops to start-ups and levying a sharply increased surcharge for those earning incomes in excess of Rs 2 crore and 5 crore were highlights. There was, however, a clear push towards electronic interface between the Tax Department and the taxpayer, with even an electronic pre-filed Tax Return proposed by Government using the vast amounts of data at its disposal. On the Customs side, there was a slant towards protectionism, with rates seeing a hike for many commodities. There was also an announcement of a scheme to resolve legacy disputes under the pre-GST regime. Fiscally, though, the intent is to reduce the fiscal deficit to 3.3 per cent of GDP. This is predicated on high disinvestment revenues and continued buoyant tax collections. The key to success will be diligent implementation of the good intentions.”

Another expert, Vijay Chandok, MD and CEO - ICICI Securities, said that the budget gives an intent roadmap for the government to achieve its vision for a $5 trillion economy in the next 5 years. 

“It goes further on the government’s commitment to some of its popular schemes like affordable housing, power for all and rural road connectivity. Government has made further references on FDI, disinvestment, reforms in taxation, unification of labour code and up-skilling in this budget, and more announcements on these fronts could be expected in the future.

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