New Delhi: India Inc has given thumbs up to the Union Budget presented by Finance Minister Nirmala Sitharaman on Monday. A couple of them said that this budget has given a booster dose to the economy through 6 pillars of mega rise in capital expenditure on healthcare, physical infrastructure without putting much pressure on the taxpayers.
The positive vibes and euphoria was evident from the strong rally in stock markets as the latter closed nearly 5% higher.
Here is how the leading industry voices reacted:
Healthcare Sector
By Dr. GSK Velu, Chairman & Managing Director, Trivitron Healthcare
“Budget 2021 will strengthen the vision of Atma Nirbhar Bharat.
The budget will provide a big boost to the healthcare industry working on the development of modalities for preventive healthcare, curative healthcare, and general wellness. Undoubtedly, it will help to expand the capacity of primary, secondary, and tertiary care health systems and strengthen national healthcare infrastructure. Also, it will facilitate the creation of new and advanced institutions for emerging diseases.
We welcome these steps as we remain committed to building the nation’s Healthcare Infrastructure to fulfill the government’s mission”
Manufacturing
Mr Pankaj Poddar, CEO- Cosmo Films Limited
The Union Budget 2021-22 is a decent budget with a focus on infrastructure, inhouse manufacturing, healthcare and others. There are positives with respect to the movement towards simplicity and rationalization. Increase in custody duty and incentives to inhouse manufacturing are the need of the hour. The government could have focused on providing more incentive to industries having export potential and providing PLI incentive similar to the textile Industry. The aggressive government borrowing plan for FY 21-22 may cause interest rate increase”.
Technology Sector
Gaurav Shinh, CEO & Founder, DAAS Labs
The Budget 2021-22 has left the data science community quite excited for what is to come. For me it was really interesting when the Government announced that it will launch multiple data analytics, AI, ML driven models for e-security, e-education, e- consultation, and compliance management. Also, the prospect of using Artificial Intelligence and Machine Learning in GST Fraud Tracking is quite motivating and intriguing.
The Government’s continued support for the startup is quite uplifting as the Government is setting aside Rs 15,700 crore in FY22 and has reduced margin money requirement from 25% to 15% for startups. The proposal of extending the tax holiday for start-ups by one more year will also give more confidence to the entrepreneurs.
Mr Sudhir Kothari, Founder and CEO, Embee Software
“The budget has been extremely fair and balanced in its approach, given the current scenario we welcome the initiatives taken by the government today. one of the key takeaways is the focus on disinvestment however the task is to complete it within the timeline. The push to make the system transparent by bringing offside balance sheet into the government balance sheet is a welcome call and is worth applauding. The big push and focus on Capex expenditure are in the right direction in spite of the fact that the fiscal deficit stands at 9.3% there has been no compromise in the budget by the Government. The great challenge of creating windows for employment will be met by introducing these kinds of steps. The Health Industry has also been given a lot of benefits ensuring that we are not caught unaware if we meet again with a global crisis. The FDI limit increased in the insurance sector will give more options for security and is a major boost for the people of the country. The bad bank and focus on stressed assets is a good idea. One of the best takeaways today is extending residency limit from 120 to 180 days and NRI’s spared with double taxation is a strong message to the International community that the Government acknowledges their contribution in making India a brand. The introduction of competition in the power sector will break the monopoly of the Pvt sector in the distribution of power which will result in commonality in prices and services for the consumers”.
Railways
Rajeev Mehrotra, Chairman & Managing Director, RITES Ltd.
A growth-driving Budget through increased capital expenditure on railways, roads, metros, airports, energy and public transport. Besides employment creation, it will boost demand for capital goods, banking, insurance and other services. National Infrastructure Pipeline and National Rail Plan give long-term investment direction. Disinvestment(s), monetisation of assets, public-private partnership (PPP) and increased tax compliances will play a major role in such mega capex.
Rajeev Mehrotra, Chairman & Managing Director, RITES Ltd.
Travel & Hospitality and F&B Sector
Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
While there is nothing specific on the tourism and hospitality sector in the budget, I feel broader focus on the budget on increasing consumption and infrastructure spend by the government will have a positive impact on the hospitality sector. The government has done the right thing by not introducing any new tax or COVID cess as some had anticipated. We also believe that the amount allocated for COVID vaccination is a positive for our sector as more people get vaccinated it will encourage people to travel.
Luxury & Retail Sector
Mr Gaurav Mehta, Founder & CEO, Jaipur Watch Company
I think the budget is positive in the sense that it will drive consumption and encourage consumers to spend like they were doing the pre-COVID times. The announcement on rationalization of custom duty on gold, silver and other precious metals is a huge positive for us in the bespoke watch industry. The demand for bespoke gold watches is at all time low, a lower customs duty will help us in reducing our input costs which we can pass on to consumers. Await to hear details on custom duty for imported watches.
