Winning Business Bureau
Mumbai: Almost all corporate and industry bodies have termed Modi govt 2.0 budget as “growth oriented” saying it futuristic, but surprisingly, both the stock markets BSE and NSE reacted otherwise and started trading in red, which indicates that whole truth of the nature of the budget is otherwise.
Before we move ahead to hear what industry majors had to say about budget, it is pertinent to say Sensex and Nifty closed on a negative note, as market participants turned cautious post the outcome of Union Budget 2019 amid globally weakened markets. At the closing bell, Sensex fell over 394 points to 39,513 post Sitharaman’s Budget speech, while Nifty50 fell 135 points to 11,811 level.
Metal, Oil & Gas, Realty, Pharma and IT stocks dragged the market further down, while banking sector stocks and FMCG pulled the market somewhat upwards.
Now we come to see what India Inc. had to say about the various proposals of the budget across the country.
Hindustan Chamber of Commerce President P Rajendra Kumar said the focus has shifted from agriculture, industry, defence to rural, urban, youth, MSMEs and start-ups. “This is first time we are hearing of such special emphasis on these sectors”, he said.
Chairman CII Western Region and MD of Bajaj Finserv Sanjiv Bajaj said that the first budget of the new government lays out 360 degree plan for the next five years ranging from infrastructure, investment, government divestment programme to changes in the direct and indirect taxes.
Bajaj said, “The budget should focus on immediate job creation, land reforms, labour reforms and availability of liquidity both for the short term and long term, which will help to take the economy to the government’s goal of an 8% CAGR growth over the next 5 years and take us to a $5 trillion economy.”
Industry body Assocham’s President B.K. Goenka said in a statement that Sitharaman’s maiden budget is a mega investment-oriented initiative with a strong focus on scaling up rural infrastructure and demand along with a slew of tax simplification measures, aimed at boosting growth, and maintaining high level of fiscal discipline,
Commenting on the Budget, President of FICCI Sandip Somany said, “Directionally the budget is good, and it takes forward the plan that was laid out by the government during the Interim budget. There are several positives in the budget, and it provides a set of benefits for most segments of the society. We see a clear action plan for realising the vision of making India a US$ 5 trillion economy over the next few years with a focus on ease of living.”
Industry bodies in Southern state also termed the union budget growth-oriented. South India Chamber of Commerce and Industry President R Ganapathi described it “futuristic” and savings driven growth budget. “The government has rightly focused on electric vehicles, rural empowerment and overall economic development,” he said.
Mumbai-based noted chartered accountant Nagesh Dubey termed the budget “very balanced” and said that Finance Minister has distinctly doled out goodies for every deserving section of society.
Dubey said, “For Grameen Bharat there is housing, toilet, electricity, gas and medical benefits while for Urban India there is affordable housing, medical, digital economy, ease of living, National common mobility card etc. Tax benefits given to Companies having turnover upto 400 crores but for individual rates have remained at the same level but tax compliance has been given special attention to. Like e-assessment to be implemented in phased manner. Start-up ventures have been given special advantages under income tax.”
Dubey also said that liberalisation of Foreign Direct investments and standardisation of Labour law to create better environment for employment are going to be the game-changer for the country.
Gautam Hari Singhania, Chairman and Managing Director of Raymond Ltd said that this budget has attempted to address the concerns of various stakeholders of our society from agriculture to social sector, industry, youth and women.
Singhania said, “Giving a boost to ‘Make in India’ by focusing on manufacturing and enhancing infrastructure and rural connectivity, the budget is aligned to the nation building, economic growth and job creation.”
Trustee of the Bharat Merchant Chamber, a leading body of textile manufacturers of the Mumbai city Rajiv Singal, however, slammed the budget and said that this budget belongs only to corporate and middle class as well as lower class feel disheartened.
Anuj Puri, Chairman of the Anarock Property Consultants reacted that overall, Union Budget 2019-20 is a balanced one with more of a long-term vision as a follow-on of the Interim Budget.
“As far as real estate is concerned, the budget had a few hits and several misses. Infrastructure stayed at the top of the government’s agenda. This is of course significant, since infra development is one of the main propellers for economic growth and real estate benefits both directly and indirectly,” he said.
House of Hiranandani Founder-Director Surendra Hiranandani termed the budget as a budget for all. He said, “India’s real estate sector has a reason to cheer as Finance Minister (Nirmala Sitharaman) has announced a range of sops for real estate developers as well as home buyers.”