Gujarat corporate reactions on union budget

February 01, 2020
Business Central Government Gujarat

Gandhinagar: Reactions to budget 2020-21 presented by union Finance Minister Nirmala Sitharaman today –

“Improving animal health has been a priority of the current Government. We welcome the announcement of the Government of India in todays Union Budget to work towards elimination of Foot-and-Mouth-Disease (FMD), Brucellosis disease & PPR disease by 2025, in cattle, sheep and goat in India. Better health of cattle, sheep and goat in rural India, where human beings live within close proximity of these animals, indirectly leads to better health of human beings. It also improves the economic status of farmers due to productivity improvement from these animals in terms of milk and wool production. The announcement to increase coverage of artificial insemination from 30% to 70% is also a positive step. Hester Biosciences manufactures Brucellosis & PPR vaccines. We have been and would continue contributing to this initiative of the Government through our vaccines which are available across the country. This initiative by the Government of India goes in line with Hester’s objective of “Better health for human beings though healthier animals”.

Rajiv Gandhi
CEO & Managing Director
Hester Biosciences Limited

“We welcome the announcement in today’s Union Budget on setting up of an International Bullion Exchange at GIFT IFSC. This will lead to better price discovery of gold, create more jobs and further enhance India’s position in the bullion market.This announcement is in line with Honourable Prime Minister Shri Narendra Modi’s vision that GIFT City would become a price setter in some of the world’s largest traded instruments in the next 10 years.Hon’ble Finance Minister has re-emphasised the importance of GIFT IFSC as an emerging Global financial services hub. The policy pronouncement regarding GIFT IFSC gives a tremendous boost to investor confidence both in India and abroad.We thank Ministry of Finance, Government of Gujarat and all related institutions for their support in creating a Vibrant Global Financial Hub.”

Tapan Ray
MD GIFT City

India INX is fully geared up and ready to launch Rupee Dollar Futures and Options contracts trading as soon as approvals are received from regulators. Further he said that we will also be keen to set up the International Bullion Exchange at GIFT IFSC. The budget announcement by Honorable FM to reduce the withholding tax from 5 per cent to 4 per cent for IFSC Exchange listed bonds will be an immense boost to all issuers and will immensely help them in attracting more international investors. Índia INX has already listed MTN programs worth USD 47 billion dollars with drawdown of USD 18.5 billion dollars till date. This announcement should greatly incentivise issuers to choose Índia INX as the preferred platform for listing their international bonds and masala bonds.

V Balasubramaniam
MD&CEO, India International Exchange (India INX), GIFT IFSC

“Union Budget 2020 has taken some necessary steps to make the education sector more competitive and inclusive. Through this budget, the Government has reiterated its intention to spur entrepreneurship and create entrepreneurs at various levels. The announcement of entrepreneurship related courses in 150 higher learning institutions in the country is a welcome move. Seed funding for early stage start-up and adequate tax concessions are also very crucial and timely initiatives as the country is witnessing a start-up revolution. In addition, measures such as FDI in education, Online degree courses and setting up of Knowledge Transmission cluster, should hopefully improve the quality of education.”

Dr. Sunil Shukla,
Director-General, Entrepreneurship Development Institute of India (EDII)

The direction of the budget is progressive, however there are no sector specific measures for the realty sector. The only measure how the budget can boost the real estate sector is by accelerating growth to 6.5% in 2020-21 from 5% at present, boosting income and thereby inducing demand for new homes. The current budget addresses the liquidity challenges by putting more money in hands of potential home buyers by slashing taxes across income groups. The current budget has given an impetus to National infrastructure plan by giving 100 % tax concession to sovereign wealth fund on investment in infrastructure projects (housing, safe drinking water, clean energy, health). The sector specific measure for real estate include continuation of exemption under Section 80IBA on profits from affordable housing projects and income tax exemption under Section 80C for the individual in the new optional version for another year up to March 31, 2021. Also, with focus on skilling, entrepreneurship, alternate energy, start-ups, agriculture and tourism, government is keen on generating economic growth opportunities in the rural sector, exposing the new talent pool from non-metros leading to development opportunities. However we are eagerly waiting for the rental housing policy, one time roll over and the 45 lacs limit to be removed in affordable housing definition.

Jaxay Shah
National Chairman CREDAI

“The Finance Minister has announced a balanced budget inspite of existing challenges in hand. It has focused on generation of employment and inclusive growth through increased expenditure on rural economy, infrastructure, MSME and healthcare. Abolition of DDT, tax relief to middle class and lower middle class segments along with simplification of the tax regime will improve public sentiment and augur well for the economy. While, listing of LIC is a good move which will bring focus on the life insurance sector, other expectations of sector could have been met better. The insurance industry will be watchful of the implication of the direct tax changes in the new tax regime.”

Kamlesh Rao
MD & CEOAditya Birla Sun Life Insurance

Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Ltd

“Focus has been given on improving health infrastructure in the country and to ensure that quality medicines at an affordable price are made available to the masses. Abolition of Dividend tax will reduce the burden on companies. Rs. 1,000 crore allocation for technology upgradations, R&D, business strategy will provide encouragement to mid-size pharma companies in increasing exports. Generic medicines will get boost as Pradhan Mantri Jan Aushadhi stores would be expanded to every district. This would be a positive for both SME pharma manufacturing units as well as small domestic medical devices makers who supply to the scheme.”

“It is a balanced budget with special emphasis on social sector, agriculture, rural economy, healthcare, technology & innovation and ease of doing business. Proposal to remove DDT will ease immediate cash outflow corporate. To boost up the Industry growth and for financial assistance, Govt has allocated 3.5 lakhs crore fund to Banks which is a welcome step. Income Tax Reduction for individuals is a welcome move and will result in higher disposable income at hand of taxpayers. We are disappointed that GST was not reduced on tiles and sanitaryware. Indian Ceramic industry will continue to play an important role in the growth engine of the country and aim for global leadership in the industry and success of ‘Make in India’.”

Kamlesh Patel, CMD, Asian Granito India Ltd

“So far the country was trying to retain children from studying in foreign universities but for the first time India has thought of teaching foreign students. For that, a Ind-Sat examination will be taken place targeting Asian and African students. International students contribute to improving ranking of universities and attract international universities to set up campuses in India. We can say that it is a new vision for a new India”

Manan Choksi, Educationist

“Once again ‘Golden Opportunity’ lost. Pathbreaking & titanic steps were badly needed at this juncture to boost and revive the economy, which are missing. Budget will hardly lead to a revival of the real estate sector, credit growth, exports or massive investments. Massive privatisation and disinvestment were expected but announcements only in bits & pieces. New income tax slabs could have been simpler. The new structure will impact investment in saving products including life insurance policy or even availing housing loan. On positive side, revenue and budget estimates are based on realistic assumption of nominal growth of 10%.”

CA Nrupesh Shah, Founder & Chairman, Nrups Consultants LLP

“For the health sector, Rs 69,000 crores have been allotted that is inclusive of Rs. 6,400 crores for Prime Minister Jan Arogya Yojana (PMJAY). However, there is a need for generating more awareness of the generic medicines. By the year 2024, the Jan Aushadhi Scheme is to be expanded to all districts. With this, generic medicine growth will eat into the branded generic medicine market further. Positive for SME pharma companies who supply to the scheme.”

Ankur Agrawal, Founder, Medkart Pharmacy Pvt Ltd

“Amidst trembling economy and increasing unemployment rate, the Modi government in it’s second term has come up with it’s first full budget. Along with the old tax slab, the Finance Minister has also provided a new tax slab. However, if the taxpayers choose the new tax slab, they have to give away with a few deduction benefits. In the new scheme, 70 types of deductions have been removed. The taxpayer may opt for the old scheme if he/she wishes.”

Jignesh Madhwani, Promoter, Torin Wealth

This is a disruptive budget in recent years. It will give big impetus on enhanced digital connectivity and decrease skill gap. Data Centres creation, specialized smart cities and Bharatnet connectivity till village level will give big opportunity to Indian IT industry to grow their domestic market. The budget is hitting right notes as far as digital economy is concerned

Jaimin Shah, MD & CEO, DEV IT & Board Member Nasscom Foundation

#Budget 2020

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