Budget 2020 Expectations: What startup and BFSI players want from Modi government in presentation by Nirmala Sitharaman
PM Narendra Modi-led Central government is all set to unveil Budget 2020 (#BUDGET2020ZEE). Preparations for the big presentation of 2020 are in full swing. Ahead of the big presentation by Finance Minister Nirmala Sitharaman, various sectors are expecting many things from the big presentation as this is the first full budget of Modi 2.0. Here is what Startup, and Banking, Financial Services and Insurance (BFSI) players are seeking from FM Nirmala Sitharaman:
Jyoti Roy, DVP Equity Research Analyst, Angel Broking, says, "While the Government has already taken steps to revive the economy we believe that they will use this budget as a platform to announce further measures which will help growth to get back on track. While the corporate tax cut is expected to spur investments over the medium term, markets are expecting the Government to cut personal tax rates which will help consumption demand. We also expect the Government to increase allocation to the Infrastructure and affordable housing sectors given their strong multiplier effect on the economy."
Roy adds, "In the budget we also expect the Government to increase import duties on specific goods in order to encourage domestic manufacturing and also try and address the liquidity issues surrounding the NBFC and the housing sector."
Jaikishan Parmar, Sr Equity Research Analyst, Angel Broking, says, "There could be many ways the budget can help the BFSI sector, but to improve the overall health of the Banks/NBFCs/HFCs, the government should focus on improving the bigger sector, which can lift GDP growth i.e. real estate and infrastructure."
Aurko Bhattacharya, Co-Founder ePayLater, says, "The Government should introduce budgetary concessions for digital transactions and thereby reduce dependency on cash. The digital lending industry has been playing a very important role in accelerating financial inclusion, helping India transition from a cash economy to a digital economy. Thus, digital lending needs to be given a boost. Tax benefits are needed for regulated entities involved in digital lending. We expect the government to usher in a new set of reforms in the upcoming budget and hope for higher tax relief, and further clarity on Aadhaar based eKYC."
Shubh Bansal, Co-Founder of Truebil, says, "We have Strong expectations from the Union budget when it comes to reduction in GST charges as it will encourage foreign investors to invest more in Indian startups. One of the biggest steps from the Indian government in tax norms has been the relaxation of the angel tax for the startups registered."
Bansal adds, "A reduction in personal income tax is necessary as it will put more money in the hands of the consumer. The assumption being that this extra money would then be spent on buying goods and/or services, thereby stoking demand.”
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