Budget Impact 2019 Analysis: Deval Seth, Managing Director, Giesecke & Devrient MS India, says: "Budget 2019 under the regime of Modi 2.0 is a promising agenda bracing some of the key economic challenges while accelerating the growth path for the economy. Building India into a $3 trillion economy this year may seem ambitious but is still not a farfetched dream with the kind of results India has shown on the economic front in the recent years. Technology, digitisation, and modernization will have a great role in pulling up India to a $3 trillion economy this year. For instance, as more devices get connected, the market for eSIMs is set to explode in India in areas such as connected cars, manufacturing and consumer durables. The government’s move to lower the GST rate on electric vehicles(EV) from 12% to 5% and to make EVs affordable for consumers with additional income tax deduction will bring connectivity to the vehicles and G&D sees India strongly moving forward on the eSim journey which has been adopted globally.
"On the digitisation front, the National Common Mobility Card launched by PM Modi in March and the levying TDS of 2% on cash withdrawal exceeding 1 crore are critical initiatives which will help bring a behavioral shift among people and will go a long way in fostering the digitisation agenda.
"G&D strongly believes India is at an inflection point and when we are talking about growth, we are talking connectivity and technology, however the budget did not showcase enough of key sectors like telecom and technologies like 5G. While the government showed interest in emerging technologies like AI, robotics and big data, we need to understand that India will need 5G to harness the full potential of the latter. Having said that we are very confident that the government will speed up the ground work in embracing 5G."
Budget Impact Analysis: Tarun Chugh, Managing Director & CEO, Bajaj Allianz Life, says: "The Union Budget 2019 has come across as all-inclusive, seeking to boost infrastructure and foreign investment, and at the same time giving impetus to a digital economy. The government has announced no fee on merchants on card transaction in order to encourage all merchants to accept card payments. Further 2% TDS has been proposed on cash withdrawals of above 1 cr. This move will boost digital transactions in the country. For the insurance sector, the government proposed a100% FDI for insurance intermediaries, thereby making India a more attractive destination for FDI. This is a positive move for the industry, and may help better penetration of insurance products."
Budget Impact Analysis: Garima Kapoor, Economist, Elara Capital, says: “Modi’s first full budget after being voted back to power tries to strike a healthy balance between ‘welfare for the poor’ and ‘growth’ by throwing some novel ideas to attract capital while continuing to spend for the lower strata of the economy. If the measures announced in the Budget in form of divestment of government stake below 51%, foreign currency government borrowing, liberalization of FDI in select sectors among others are indeed executed, it has the potential to unleash significant capital for funding growth towards $ 5tn.
The Budget provides a fresh narrative by recognizing that the cost and availability of capital are key constraints for India’s growth.”
Budget Impact Analysis 2019: Umesh Revankar, MD and CEO - Shriram Transport Finance Ltd, says: "Modi Government`s 2.0 budget has given thrust in Public banking sector by infusing Rs.70,000 crore. The fundamentally sound NBFCs gets fresh line of liquidity as government provides credit guarantee to PSUs funding the NBFCs. This step will provide necessary comfort to the banks. Also, the exemption of Debt Redemption Reserve (DRR) of public issues is a positive step thereby increasing the liquidity in the system. Government’s continuous focus on infrastructure with the announcement of investing Rs.100 lakh crore over the next five years will boost the transport sector. According to us, the only dampener is the increase in diesel and petrol prices.”
Budget Analysis: Gaurav Chopra, Founder & CEO, IndiaLends says the maiden Budget presented by Finance Minister Nirmala Sitharaman holds great promise for the Indian start-up Inc.
Chopra is enthused by Government’s following decisions:
Measures to revive the NBFC sector:
Allowing Foreign Institutional and Portfolio Investors to invest in debt securities offered by non-banking financial companies (NBFC).
The decisions for provisioning a one-time six-month partial credit guarantee to PSBs for first loss up to 10% for the purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 Lakh crore and enabling liquidity access to fundamentally sound NBFCs by ensuring funding from banks and mutual funds. These steps will help ease the liquidity in the market and will aid the smaller and mid-size NBFCs to get the much-needed credit support.
Announcement to setup a dedicated TV programme on DD exclusively for the Start-ups:
This move is welcomed by the overall start-up Inc as this dedicated programme will provide a medium to the emerging start-ups to connect directly with venture capitalists and will help understand and work on solving the issues faced by the start-ups in the country. Government’s intent and dedication to promote start-ups is clear through this move.
Providing Public Sector Banks Rs. 70,000 crore to boost capital and improve credit:
Indian banking sector has been affected with bad loans that have risen off late. This move will give banks some breathing room and help improve confidence in the market. Infusing fresh capital in PSBs is imperative for the overall growth of the NBFC ecosystem, as NBFCs depend on banks for their capital needs. This move will help get lending back on track while stimulating growth across sectors.