Corporate India reacts to Interim Budget 2019
Pawan Goenka, managing director, Mahindra and Mahindra
The budget was on expected lines, being a pre-election budget. At the same time it was prudent. The government's hasn't gone overboard in trying to be populist. Fiscal prudence has been maintained. An expected fiscal deficit of 3.4% for 2019-2020 is a good number. However, it is not clear where the revenue will come from to finance the schemes announced by the government. One miss was that there was not enough in this budget that would lead to industrial growth. That might come in the full budget post election.
Rajnish Kumar, chairman, SBI
“The Union Budget for FY 19-20 is growth oriented and forward looking in nature. The announcement of an Assured Income Support Scheme for Small and Marginal farmers is the most welcome step. Additionally, Interest Subvention announced for farmers pursuing Animal Husbandry and Fishery will provide a fillip to this sector. Raising the full tax rebate up to ₹5 lacs will surely be welcomed by country’s emerging middle class. We believe, this will further strengthen the purchasing power of the growing middle class thereby providing a welcome fillip to the economy at large. Further, exemption of tax on second self-occupied house is likely to give further boost to the housing sector. Hiking the ceiling limit for TDS on bank deposits and small savings will act as a catalyst for this deposit segment by attracting the new depositors. To sum up, on the whole, it is a growth-oriented budget having something for everyone.”
Krish Iyer, president & CEO, Walmart India
“The Interim Budget of 2019 is rightly focusing on the middle class, rural sector and on enhancing farmers' income. It is giving huge resources in the hands of people which will drive rural income and consumption. Growing consumption is critical to support and boost local manufacturing and job creation in the country. Overall, this Budget maintains focus on fiscal consolidation and is a win-win budget for all as it will help bridge the divide between India and Bharat. It’s heartening to note that fiscal deficit has been contained at 3.4% despite the aforesaid initiatives.”
Vivek Gambhir, managing director and CEO, Godrej Consumer Products Limited
Overall, this is a “consumption first” budget that will provide a much-needed thrust to growth in the FMCG sector. It re-emphasises the aam aadmi at the heart of the Government’s pro-growth, pro-reform agenda; maintaining the fiscal deficit, stimulating demand and building a sustainable growth platform. It is positive for FMCG; proactive efforts to drive demand and increase consumption, in rural and urban, should help improve growth.
Focused efforts to relieve stress in the agrarian economy, including the 60,000 crore investment in MNREGA, and crop loans, will help put more money in the hands of farmers. The PM Kisaan Samman Nidhi allocation of 75,000 crore, is importantly, aimed at benefitting small and marginal farmers. The plan to create 1 lakh digital villages in the next 5 years will improve connectivity and thereby distribution networks.
Raising the personal income tax slab limit from ₹2.5 lakh to ₹5 lakh, and raising the standard deduction for salaried employees, will increase disposable income for middle and salaried classes and drive demand for mass products. But the need of the hour is clearly more productive job creation and gainful employment to meet the needs and aspirations of Young India. We hope to see this enabled through investments in SMEs and infrastructure investments, which seem to have slowed down.
The commitment to source 3% of government projects material from only women-owned SMEs, Mega Pension Scheme for unorganised workers, focus on health and wellness, will drive more inclusive growth.
However, the timely disbursement and strong on-ground execution will be absolutely critical now to ensure the translation and real success of this roadmap of change to make India a ”5 by 5” economy - $5 trillion economy in 5 years.
Sunil Duggal, CEO, Dabur India Ltd
Finance Minister Piyush Goyal’s Interim Budget 2019 can be summed up as a series of sops for the middle class, farmers and millions of employees in the unorganized sector. Not only does he promise to put more disposal income in the pockets of Middle-Class India, he is also seeking to improve the quality of life of people at the bottom of the pyramid, particularly the small and marginal farmers, and unorganized sector workers. In short, it a great Budget for that should spur consumption.
The government’s decision to allocate ₹60,000 crore for MNREGA and another ₹19,000 for construction of rural roads under Gram Sadak Yojana, coupled with the increased interest subvention scheme for distressed farmers and the modest farm support scheme offering income support for marginal farmers tick all the right boxes when it comes to fueling the Rural and Agrarian Economy. The minister also announced a social security coverage for workers in the unorganized sector. These are steps in the right direction and would go a long way in improving their quality of life.
But the biggest beneficiary this year is Middle-Class India. The government decision to exempt tax on an income of up to ₹5 lakh for individuals tax payers and an increase in standard deduction to ₹50,000, the hike in TDS threshold for home rent and higher Capital Gains tax exemptions under Section 54 are big-ticket reliefs for the Aam Aadmi. I am confident this Budget would boost overall consumer confidence and play a catalyst for demand generation for branded consumer staples and consumer products.
What’s also heartening to see is the government’s commitment to long-term reforms while addressing a changing international tax landscape. The decision to process Income-Tax returns within 24 hours and immediate payment of refunds, in addition to anonymizing tax scrutiny within the next two years to beat corruption and increase ease of process are steps that will create the foundation for a new-age India. The Interim Budget, I feel, has successfully laid down the blueprint for creating an enabling framework that would promote growth.
However, the upward revision in fiscal deficit target to 3.4% of GDP for 2018-19 and 2019-20 remains an area of concern. Also, there is not much clarity on the government vision and strategy for improving infrastructure and job creation.
Harsh Goenka, chairman, RPG Enterprises
Anand Mahindra, chairman, Mahindra Group
Kiran Mazumdar Shaw, chairperson and managing director, Biocon
Saugata Gupta, MD & CEO, Marico Limited
A host of measures by the Government to boost the agrarian economy through minimum support price and increased investment in the farmer scheme is a welcome move as it will benefit small and marginal farmers. Simplified tax assessment processes coupled with the increase in tax exemption for income upto ₹5 lakh per annum for individual tax payers, will not only reduce the tax burden on the middle class citizens but also increase the tax payer base in India. It will additionally result in the rise of disposable income in the hands of consumers thereby augmenting consumption. Given its focus on masses, this budget should place higher disposable income in the hands of a large section of the society which augers well for consumer goods sector in general and rural growth more specifically. Another welcome feature of the budget was the focus on digital India and building an all-encompassing digital infrastructure.
Zarin Daruwala, CEO, India, Standard Chartered Bank
“The Budget balances the objective of boosting growth while adhering to fiscal prudence in the medium term. The measures to support the rural and underprivileged segments via direct income support for small and marginal farmers and tax relief for middle class are much needed and welcome. The steps to provide impetus to the housing sector would have a multiplier effect on GDP growth given the sector’s significant economic linkages. Overall, the Budget is likely to boost domestic demand and support India’s economic outlook.”
Nikhil Prasad Ojha, partner, Bain & Company
This budget is consumption friendly, specially at bottom-of-pyramid and lower-middle income groups. Increase in allowable rebate will boost purchasing power in urban and semi-urban areas. Additionally, minimum assured farmer income will impact rural demand for FMCGs and small durables.
Ankur Dhawan- chief investment officer, PropTiger.com
Government has given sufficient reasons for real estate to rejoice in this budget. Though there were many direct announcements for sector such as extension of Section 80 IBA for 1 year, no interest on notional rent till 2 year of completion of project, reinvestment of capital gain in 2 houses rather than one and no tax on notional rent for 2 self-occupied houses, yet announcement of doubling of NIL income tax slab from ₹2.5 Lakh to ₹5 Lakh will have much stronger impact on real estate sales especially for affordable housing buyers. Not only government is giving credit link subsidy scheme for these buyers but also leaving more money in hand to pay EMIs through increased tax savings.
Vishal Gondal, CEO and founder GOQii
“The 2019 budget looks promising for the healthcare sector; we have seen some major initiatives and announcements that will potentially change the health Index of India. One of the key highlights is the establishment of a system that ensures a stress free environment and comprehensive wellness for all. Keeping in mind that 55 per cent of India’s workforce are millennials, this is definitely need of the hour. Therefore, paving way for a stress-free India is directly proportional to its growth. The healthcare announcements made in the budget are a welcome move and will help build a strong economy. This will provide opportunities for companies like GOQii to contribute to making a stress-free India and creating a space that encourages preventive healthcare over curative.
Further, Ayushman Bharat’s vision of improving the lives of 50 crore Indians which will potentially result in cumulative savings of ₹3,000 crores by the poor, is a testimony that the Government of India is strengthening the nation’s health ground up. We support the same philosophy that is making healthcare easily accessible for all Indians and governments efforts are evident through increased focus on making medicines, healthcare services and other health related instruments more affordable.”
Anuj Puri, chairman, ANAROCK Property Consultants
The interim budget was more or less a vote bank-facing exercise - an electoral pitch that drew attention to past achievements. Vote-bank directed announcements included benefits to 12-crore small farmers via credit of ₹6,000 per year directly into their bank accounts, and also to 10 crore labourers by way of direct pension bonanza.
Direct and indirect positives for the real estate sector include boost to affordable homes: People earning up to ₹5 lakh will get a full tax rebate. However, if one invests in specified government saving schemes then the tax exemption extends to Rs. 6.5 lakh. This can have good implications for affordable housing, but not really on the mid-income housing. The Government also extended the benefit of tax exemption for developers by one more year, up to 2020 now. This, too, will give a push to the affordable housing segment. Electricity for all by 2019 could have positive implications by making more far-flung areas liveable and therefore more viable for affordable housing.
The standard deduction for the salaried class was raised from ₹40,000 to ₹50,000, which definitely implies some increase in disposable income.
There was a decisive push to the second home market via exemption of notional rent on second self-occupied homes. This could boost the second home market to some extent. There will now be no tax on house rents up to Rs. 2.4 lakh from the previous limit of Rs. 1.8 lakh. This can attract more investors to buy second homes for earning rental income.
On the downside, there was no major tax relief to the ‘real’ middle-class. No announcements were made with regards to clearing the NBFC deadlock which continues to hold the real estate sector to ransom. Industry status for the real estate sector, while not really expected, was ignored again. There were promises of reduction on GST burden on homebuyers, but no announcement of actual relief. To bail itself out from the issue of job creation deficit in the country, this budget could have given a far more decisive impetus to real estate sector - one of the largest creators of jobs. Alternately, it could have created a stress-asset fund to bail out distressed homebuyers.
All in all, this was a balanced budget for real estate, even though it was clearly configured as a crowd-pleasing electoral pitch with a cursory nod towards the ongoing challenges in the economy.
For the housing sector to regain significant momentum, the real need is to woo back the long-term investors who exited the residential market. One possible way was to re-introduce the home loan benefit on second homes. The Government's move on this front is certainly welcome.
L C Singh, vice chairman, Nihilent Limited
The impetus provided by the government in propagating the advancements in Artificial Intelligence for building nation’s assets is indeed heartening to know. The plan to set up a National Centre for AI augers well for positioning India at the centre of global innovations.
Gaurav Gupta, CEO, Adani Capital
The Budget has announced some key measures for the rural economy and SME sector. The Interest subvention for SME for loans up to ₹1 crore, the government’s aim to source 25% from SMEs will spur a new wave of economic development, making way for more capital expenditure by the SMEs, with add-on benefits to other allied industries. This will further aid employment generation and help in the all-inclusive growth of the economy.
Jayant Manglik, president, Religare Broking Ltd
The Modi government has seemingly once again managed to defy the convention by pulling off a Budget, which seems more in the nature of a full budget rather than an interim budget.
The priorities in the budget were clearly focused on two important segments of the Indian economy – the middle-income group and the farmers. Thus, for the former, while the government has proposed income tax relief to those having income of upto ₹5 lakhs, a ₹75,000 cr relief package has been announced for the farmers community for FY20 and also a ₹20,000 cr farmer income support package for the current fiscal. However, the government has pegged the fiscal deficit target at 3.4% for FY20, which is a marginal negative considering that the objective of staying on course to reducing the fiscal deficit has been compromised for another year.
From the stockmarket point of view, this Budget will be welcomed, as it focuses on increasing the disposable income in the hands of a large section of the economy i.e. middle-income group and farmers. The budget proposals are a positive for sectors related to consumption, which include FMCG, Auto, Consumer Durables, Banks and Fertilizer / Agri. Moreover, with several announcements pertaining specific to the Real Estate sector in the Budget, this sector will stand to be a beneficiary over the medium-to-long-term. Thus, sectors related to and dependant on Real Estate will also stand to gain and these include Paints, Cement, Ceramics, etc.
The General Elections are around the corner, a fact which was seemingly on the government’s mind, and at the same time, a feel-good in the economy was the need of the hour. In this backdrop, the government has rightly put growth (consumption) over fiscal discipline for next year. Overall, it was a good budget, which is aimed at setting the stage not just for the Election battleground at a micro level, but for pushing India’s growth to a higher growth trajectory at the macro level in a challenging global and domestic set-up.
Ashok Hinduja, chairman, Hinduja Group of Companies (India)
It is a people’s budget with the long term vision for making India an engine of growth for world economy. The proposals would fulfill the expectations of common people, salaried class and farmers to a large extent. The distressed farmers will stand to benefit by several measures announced. The cash support of ₹6,000 per year to them is a good beginning to increase their income and lift them above poverty level as experienced in Telangana. Another welcome measure is the assured monthly pension for unorganized sector workers. However, more money supply into the economy should not lead to inflation and other adverse effects. The higher allocation to Defence and capital expenditure should give a boost to manufacturing industry and job creation. The fiscal deficit is stated to be 3.4% of GDP which is slightly higher than the figure expected by the global rating agencies. But if the higher deficit leads to creation of more goods and services, it will not affect the economic growth. On the whole, the acting Finance Minister has done a good job.
Ranen Banerjee, partner, PwC India
The income tax sops for the taxpayers will lead to higher disposable incomes for discretionary spends. This will support demand uptick. We expect credit growth from some of the banks coming out of the PCA (Prompt Corrective Action) framework and realisation of ₹3 lakh crore of NPAs as announced. The changes to the capital gains from sale of house property, being allowed to be invested in 2 properties instead of one and the 10 year window for registration of affordable housing projects for getting tax relief will provide a boost to the real estate sector and consequently to construction activity. We expect good tailwinds to the India growth story from these announcements in the budget.
Nikunj Ghodawat, CFO, CleanMax Solar
It is good to see that Renewable Energy remains a priority for the Government and has been prominently highlighted in India's 2030 Vision. Electric Vehicles have also been brought into focus. What we will wait to see is, finer print on the renewable industry like uniformity in policies, imposition of duties, ease of financing etc. to reduce dependence on deplete-able energy resources, thereby fueling adoption of renewable energy. For Electric Vehicles to be a norm of the future, policies should include how EVs can be powered by renewable energy. While the budget has confirmed the role of renewables in its vision of a clean and green India, and states have started showing enthusiasm in adoption, a long term road map will be expected by the industry.
Mahesh Balasubramanian – MD & CEO, Kotak General Insurance
The honourable FM has done a fine balancing act in his budget speech, with something for everyone, given that this is an election year budget. He has kept the interest of both Bharat and India in mind and announced measures which caters to all.
The fiscal deficit of 3.4% for this year in a minor slippage, I am sure the markets will not be too worried about it and infact have responded well. The market is relieved to hear that the government continues on road of fiscal discipline with Fiscal deficit at 3.4% for FY 20. We have to see how the government will achieve this, but directionally it gives great comfort.
For Bharat, the Assured Farm Income scheme called PM Kisan Sanman Nidhi, is a good move. Rs 6000 / year for every farmer will cost Rs 75,000 cr and will be 0.26% GDP. The fact that this a DBT scheme also ensures that the money reaches the hands of the farmer. ₹60,000cr for MNREGA, ₹3000 cr savings through the Ayush Bharat insurance program will help put more money in the hands of Bharat. The social security through pension scheme of ₹3000 per month for 42L workers in the Unorganized sector is a welcome move for these workers who were deeply affected in the last few years.
The Personal Income tax slabs going up to ₹5 lakh, increased standard deduction limits of ₹50000, along with increase in TDS limits in savings accounts from ₹10,000 to ₹40,000 is a welcome move and is pro middle class and will boost urban consumption. Personal consumption will continue to drive growth. Continued spends on Roads (₹19,000 cr), Railways ( ₹64,000 cr) and Defence ( ₹3 lakh cs) by the government is crucial as private investments are yet to kick in. This spend by the govt will be required to keep our GDP growth going. Real Estate, SME sectors also have some benefits announced and will help in revival of these sectors. Overall a good budget, which will keep India on course.
Kamal Nandi, president – CEAMA and business head and executive vice president, Godrej Appliances
The interim budget for 2019-20 has focused on farmers and the middle class and should boost consumption.
Full tax rebate for income up to 6.5 lacs (including investment under 80 C) will boost sentiments and we foresee a rise in demand for the mass segment of consumer durable goods.
Rural electrification which aims to touch every household by March 2019 coupled with infrastructural push via Gram Sadak Yojana and the rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should therefore improve faster.
Also, governments continued attention towards skilling will help improve the quality and quantity of skilled labour - critical to industrial growth.
We also welcome governments attention towards climate change and clean energy. We are committed towards the success of the energy efficiency regime and will continue to support the government in this area.
The FM also talked about the vision of making India a 5 trillion dollar economy in next 5 years and a 10 trillion dollar economy in next 8 years thereafter. We welcome this ambition and would like to affirm that electronics, appliances and AI industry will serve as major growth drivers in achievement of this objective.
The interim budget though did not provide much further impetus to the indirect tax reforms which are crucial for manufacturing and Make in India. We hope to hear some major announcements in the full budget which may provide the desired support to the ACE Industry and electronic manufacturing.
Keshav Murugesh, group CEO, WNS global services & vice chairman - NASSCOM
“The broad narrative of the Interim Budget 2019 is one that is pro-economy, pro-development. It has announced much-needed steps for every section, be it farmer incentive schemes to propel the agrarian economy, tax rebates for the middle class, enabling overall tax compliance bringing more transparency in the systems, real estate, insurance, healthcare, amongst the others.
The 10-point agenda in Vision 2030 lays out a sharp roadmap for India’s growth. It aims to elevate the citizens’ overall standard of living in a clean, healthy and green India, make the nation a world’s launchpad, expand rural industrialization, and make India agriculturally self-sufficient.
It’s laud worthy that the government has given due prominence to the disruptive space of artificial intelligence (AI) for the first time, announcing setting up of a National Centre for AI along with the development of a National AI portal. The technology sector welcomes the move and would like to see a quick turnaround if we aim to catch up with other global economies such as China and the U.S. We are confident that all these measures would bring back economic buoyancy.”
Sanjay Chamria, vice chairman and MD, Magma Fincorp
“A middle class budget with a rural focus is what the government has delivered in an election year. They have managed to focus on rural and SMEs while enabling higher affordable housing too. Farm support schemes will put more money in the hands of farmers thus giving an impetus to rural consumption. MSMEs will benefit from the interest rate subvention and from the sourcing requirement guidelines for government entities. Low income individuals will reap significant benefits from this budget and that will mean a stimulus for affordable housing.
The announcement of benefits under Section 80 - IBA of the Income Tax Act being extended, additional boost from exemption of tax on Notional Rent and capital gains benefits on selling one property and buying two will all give affordable housing financing a leg up. On the interest rate front, the FM has set the stage for a rate cut by the RBI and that is a positive for funding. The removal of three banks from PCA framework and the expected capital infusion in this month, will ease the liquidity problems to a good extent. Fiscal arithmetic however doesn’t seems to be too clear, but in an election year you usually see higher spends.”
Surendra Hiranandani, founder & director, House of Hiranandani
“It is an inclusive budget that focused on strengthening the agricultural and rural economy, healthcare, infrastructure, social inclusion, digital and employment generation in the country. It also gave a substantial boost to the residential housing sector.
The rise in individual tax exemption up to ₹5 lakh will impact consumer sentiments positively. The tax savings that the salaried class stand to benefit will lead to higher consumption including investments into residential real estate. The proposal to raise the limit TDS threshold to ₹40,000 currently will also provide relief to taxpayers who invest in bank deposits and various post office schemes.
Amongst the notable announcements for the real estate sector, the decision to eliminate tax on notional rent on second self-occupied house is a welcome move. This will prep up demand for second homes substantially.
Relaxation of notional rent on unsold inventory to 2 years will also ease burden on developers, who now have more time to sell their projects. Continued thrust on affordable housing through tax benefits on projects allows for expansion of this class of the asset even further. The benefit of exemption of capital gains up to Rs 2 crore for investment in two houses will increase sales in the residential sector.
The FM has brought about substantial improvements in both personal income and capital gains. This is extremely positive as compared to the slow incremental reforms of the past.
The decision to grant significant capital for rural development and infrastructure is a step in the right direction. The impressive development of roads, infrastructure over the last five years has been significant and if the same momentum is continued then the increased connectivity will have a positive rub off on all segments of real estate including commercial and industrial developments.
To sum it up we definitely believe that this budget has set the tone for future growth of the economy.”
Priti Rathi Gupta, MD and promoter, Anand Rathi Group
“The FM did what was the need of the hour by encouraging MSMEs and Women entrepreneurs in boosting the economy. The increase in basic exemption limit to INR 5,00,000 will stimulate additional investments and disposable income resulting in more Investment power. I also feel tax breaks for women returning to the workforce will prove to be a push in the right direction. Celebrating women and giving them equal and better opportunities in the upcoming budgets will be a positive big contributor to grow the Indian economy.”
Sampad Swain, co-founder & CEO, Instamojo
“While ease in obtaining loans for MSMEs continues to remain the need of the hour, additionally aided by the government’s 59-minute loan portal, the hike in the GST threshold has certainly brought about a major relief for MSMEs. Additionally, the government’s aim to empower 1 Lakh villages digitally only gives us further hope to identify an addition of more MSMEs in the country, which is currently populated with 6.3 crore enterprises, given that digital adoption by small businesses has always been a challenge to fight through, for the fin-tech sector. Further, the reduction in the GST slab from 18% to 6% could be a great move to encourage new and aspiring entrepreneurs to begin new ventures.
The government’s mandate of 25% of goods procurement from SMEs will help the sector scale up, not only in terms of quantity, but will also enable wider reach, thus expanding to different markets.”
Shyamal Mukherjee, chairman, PwC India
“The thrust on social infrastructure, ease of living, and technology led governance for inclusive, equitable growth is a welcome move. India would continue to need more structural, policy and economic reforms to become a $5 trillion economy in the next five years. There is a considerable ground to be covered and this Budget has set the tone for future discourse.”
Sanjay Chamria, vice chairman and managing director, Magma Fincorp
A middle class budget with a rural focus is what the government has delivered in an election year. They have managed to focus on rural and SMEs while enabling higher affordable housing too. Farm support schemes will put more money in the hands of farmers thus giving an impetus to rural consumption. MSMEs will benefit from the interest rate subvention and from the sourcing requirement guidelines for government entities. Low income individuals will reap significant benefits from this budget and that will mean a stimulus for affordable housing. The announcement of benefits under Section 80 - IBA of the Income Tax Act being extended, additional boost from exemption of tax on Notional Rent and capital gains benefits on selling one property and buying two will all give affordable housing financing a leg up. On the interest rate front, the FM has set the stage for a rate cut by the RBI and that is a positive for funding. The removal of three banks from PCA framework and the expected capital infusion in this month, will ease the liquidity problems to a good extent. Fiscal arithmetic however doesn’t seems to be too clear, but in an election year you usually see higher spends.
Ashish Mehrotra, MD & CEO, Max Bupa Health Insurance
“It’s heartening to see the Government’s continued thrust towards building a Digital India and providing Universal Health Insurance Coverage to about 80% of the Indian population which is grossly underpenetrated. We wholeheartedly support the Government’s resolve to make preventive healthcare and health insurance more affordable for the masses. Ayushman Bharat has the potential to alter the social fabric of the country and with the announcement of two major initiatives - Health and Wellness Centres (HWCs) and Pradhan Mantri Jan Arogya Yojna (PMJAY), the world’s largest social health scheme is expected to provide coverage to nearly 50 crore people.
This year, the announcement of a National Centre for Artificial Intelligence, National AI portal, support to digital start ups and setting up of Centres of Excellence, is a crucial step towards realizing the vision of building a Digital India. Specifically from a health insurance perspective, AI has the power to revolutionize the sector - personalising, improving and streamlining processes from underwriting, claims management, to even product design and innovation. With greater focus on digitization, the play of health tech in the health insurance space will encourage players to provide customers a complete health and wellness ecosystem.
The budget has also been encouraging for the common man with increased income tax relief coming their way.
However, as a health insurer, we believe the introduction of Reduced/No GST slab for health insurance would have been a significant driver to increase health insurance penetration in the country. Nonetheless, the overall budget has been reflective of the efforts made by the government to build a healthier nation.”
Sanjaya Gupta, managing director, PNB Housing Finance
“Finance Minister Piyush Goyal’s thrust on the middle class, in his Interim Budget 2019-20, is welcome as it will place more disposable income in the hands of the salaried class, small traders and businessmen, which will in turn boost the affordable housing segment. With various sops announced for the middle class — such as the IT exemption on annual income, tax exemption on notional rent on a second self-occupied house and the benefit of rollover of capital gains from investment in one residential house to two residential houses — will help both existing and potential homebuyers. Besides, the extension of benefits under Section 80-IBA of the IT Act for housing projects approved till March 2020 will give a big impetus to the real estate sector. The Budget will also have a positive impact on first-time homebuyers.”
Rajnish Kumar, chairman, State Bank of India
The Union Budget for FY 19-20 is growth oriented and forward looking in nature. The announcement of an Assured Income Support Scheme for Small and Marginal farmers is the most welcome step. Additionally, Interest Subvention announced for farmers pursuing Animal Husbandry and Fishery will provide a fillip to this sector. Raising the full tax rebate up to ₹5 lacs will surely be welcomed by country’s emerging middle class. We believe, this will further strengthen the purchasing power of the growing middle class thereby providing a welcome fillip to the economy at large. Further, exemption of tax on second self-occupied house is likely to give further boost to the housing sector. Hiking the ceiling limit for TDS on bank deposits and small savings will act as a catalyst for this deposit segment by attracting the new depositors. To sum up, on the whole, it is a growth-oriented budget having something for everyone.
Ritesh Agarwal, founder & group CEO, OYO Hotels & Homes
“This is the Budget for a New India. The honorable interim FM has meticulously balanced priorities of various sections of our society and delivered on his government’s vision of ‘Sabka Saath, Sabka Vikas’. This Budget makes a strong promise to the people to India, which I hope will be backed by an equally strong delivery, especially in the areas of job creation and addressing the skill-talent gap. The announced tax breaks, together with low average inflation, are likely to spur domestic demand and spending, and inject liquidity in the market. This is great news for sectors such as hospitality and travel. The announcements on bridging the digital divide and improving efficiency through technology are also welcome. I am excited about India’s Vision 2030 and believe that it will empower more young entrepreneurs to set off on their entrepreneurial journeys.”