Look how Industry reacts on Budget 2019


Union Budget 2019 presented today by Finance Minister Nirmala Sitharaman. All from common citizens as well as Industries was expecting positive announcements today from first budget of Modi 2.0 Government. As budget announcements out now, look how Industry reacts on today’s Budget announcements:

“We share and commend the idea of the Finance Minister towards taking capital market closure to common people and introducing the concept of social stock exchange for social welfare schemes under the able guidance of capital market regulator SEBI. As we know, the financial market provides an instrument and platform for raising capital through equity, debt, and bonds. However, debt and bonds market is yet to achieve a desirable level and budget is aimed at infusing strength through various reform measures. The government continued with its focus on improving physical connectivity (Through road, rail, air, seas, and inland water) and recognizing the role of public-private partnership in bringing funds towards giving further thrust for speedy infrastructure buildup.” Sanjeet Prasad, MD & CEO, ICEX


“Union Budget has taken several measures to reduce risk aversion and increase lending to NBFCs. Measures like one time partial 6 month guarantee to PSBs to buy sound NBFCs’ loans and higher recapitalisation of PSBs require a special mention. Higher regulatory powers to RBI over NBFCs and return of regulation of HFCs back to RBI will definitely restore the confidence for well governed NBFCs.’’ Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd


“The recommendation of increasing public participation from 25% to 35 %, expect the float of several more companies to increase in the next 2 years, leading to several INs and OUTs of the Nifty which is currently based on Free Float methodology. A lot of MNCs, Insurance companies and Consumer companies like DMart will stay in focus because of it. The Index will become more BFSI and Consumption heavy unless sectoral caps are brought in. This will also offer greater float in the market for institutional participation.” Vinay Pandit Head – Institutional Equities, India Nivesh


“The government’s budget is all about integration, ease of doing business, ease of raising capital, and government-driven infra-push. These will serve as the directional road map to be chartered in the next few years. The government has announced big bang structural reforms at the macro level – the opening of the financial sector, aviation, FDI in retail, raising of debt money by NBFC’s through FDI route. The government has made sure that the power reforms will continue, the push on infra will be dedicated to the freight corridor and waterways. To further improve the condition of the industries, the overhaul and reform of the rental laws will be carried out, the payment window for MSME through a platform for government contracts will be put in place. There will likely be a boost to the FPI flows by creating an investor-friendly environment. A new window will be opened on electronic fundraising platform for social organizations like NGO’s through equity capital. The proposals are primarily focused on ease of raising foreign capital for various investment opportunities.” Dharmesh Kant, Head – Retail Research, IndiaNivesh Securities Limited


“We hail the intent in this budget of a New India that aims to make the country as one of the leading higher education destination in the world. The focus on a new national policy, efforts to increase government funding, emphasis on research, skilling & digital technologies are the levers that will surely help drive India’s growth as one of the leading economies in future. We look forward to achieve the collective digital dream.” Dr. Sanjay Gupta, Vice-Chancellor, World University of Design


“Allocation of Rs 400 crore for world-class higher education, ‘Study in India’, new national education policy, thrust towards R&D, skilling and new –age technologies are all steps in the right direction that will help, the government, industry and academia in establishing India as the next educational hub. Additionally, the emphasis on quality education, improving the overall infrastructure will help the country become future-ready with a deeper focus on research and new age skills such as robotics and AI.” Prashant Gupta, Executive Director, Sharda University


“Surprisingly in the budget there was no mention of any benefits and plans for healthcare! However certain positives are the proposals to set up the National Research Centre and Annual Global Investors Meet, both the initiatives that will help give an impetus and attract research proposals and funding to India’s potential. Easing of Angel tax and relief from IT scrutiny for start-ups are great encouragement for the sector. While announcing large scale projects for electric cars, the government has completely ignored the bio-medical sector which has the potential to be a global research hub for fields like genetic research, bio-informatics and AI in healthcare.” Swati Deshpande, Director (Operations), Datar Cancer Genetics Limited