Walmart India Boss Says Budget 2020 Will Strengthen Grassroots Of Economy; Sanjay Dutt Calls It Disappointing For Realty
Hello, Madam FM
Stating that the Government was committed to present a Budget that would help boost consumer’s incomes and enhance their purchasing power, she laid down the three planks of Budget 2020: Aspirational India, economic development, and creating a caring society that provides ease of living for every citizen.
Here's what business leaders had to say about Sitharaman's second Budget
Logistics Leading The Way
“The Union Budget for 2020-21 has focused on agriculture, infrastructure and economic activities. The Government providing viability gap funding for PPP-based warehousing at block and district level will add to the boost for the logistics sector and attract global investors and developers.
"It also places a strong emphasis on infrastructure building by faster connectivity via roads and railways with an investment of Rs 1.7 lakh crore for transport infrastructure. The Government’s firm move on National Logistics Policy will further have a positive impact on the country's logistics industry as it will help increase warehousing capacity, and also identify gaps that could be bridged to bring down the cost of logistics for traders. Additionally, the proposal of National Bank for Agriculture and Rural Development (Nabard) mapping and geotaging the warehouses and cold storages will initiate making a seamless cold storage chain available across the country. We are confident that this policy will further enhance India’s ability to trade globally.”
Real Estate Disappointing
"The 2020 Union Budget outlined Aspirational India, Economic Development & Caring Society as the key focus areas. A lot has been attempted in the Budget to address this. Thrust on accelerated infrastructure development is meaningful. The launching of Rs 103 lakh crore infra projects and focus on accelerating highways construction will also boost the infrastructure of the country. Tax benefit to Power Generating companies on the lines of new manufacturing companies, 15 per cent Corporate Tax is certainly a welcome move as it will support industrialisation as well as generation to meet future demand.
"However, from the real estate sector point of view, it had been disappointing. It has only touched the outlines of Affordable Homes tax benefits to the developers from timelines perspective, allowing an extension by one year to avail tax benefit. On the brighter side, we are pleased to know about the government’s focus on the introduction of a policy to build data centre parks throughout the country. Overall, we would have liked to see a few of the several long- standing needs of the real estate sector be addressed.”
"Budget 2020 is a comprehensive and inclusive framework aimed at putting India back on the accelerated growth path. The government has done well to articulate a roadmap that continues to back investment areas with multiplier effects(rural infrastructure, healthcare, transportation & tourism), focuses on job creation (assemble in India, increased opportunities in Government agencies, establishment of the investment clearance cell), while also taking meaningful steps towards making structural supply side changes (education outlays, tax reforms, investments in new age technologies, key disinvestments).
"What remains to be seen is, if the fiscal scenario would permit the Government to enact all that it has envisaged. In summary, Budget 2020 is ambitious in scope; but its success is hinged on hope."
"The Budget 2020 would lead to creation of a New Aspirational India, anchored around agriculture, health and education. This budget, seeks to strengthen grassroots of the economy with its positive push towards creation of a strong agriculture infrastructure, which will give a big push to India’s rural sector.
"The rate cuts in the Personal Income Tax rates would increase disposable income in the hands of the Indian middle class which will enhance consumption through improved purchasing power. These two positive budgetary interventions together would drive a strong demand growth that drives the Indian economy in turn. This is a budget that unveils the roadmap to Prime Minister’s vision of $5 trillion economy by 2024-25 by reinvigorating the hopes of both urban and rural consumers."
AI Is The Way
“We are delighted with the steps taken by the Government in the Union Budget towards providing an impetus to entrepreneurship and acknowledging that startups are major job creators. This year, the budget has allocated Rs. 3,000 crore for skill development, which will help in creating a future-ready workforce. The provision for setting up an investment clearance cell for entrepreneurs, an online portal to facilitate quicker business clearances, and a seed fund to support early-stage startups will all collectively attract foreign investment in Indian startups.
"At present, startup employees are required to pay tax whenever they sign up for ESOPs with a vesting schedule and also pay taxes on capital gains whenever they redeem their ESOPs. As a provisionary measure to this, the minister has proposed deferring the tax payment by five years, or until employees leave the company, or when they sell their shares—whichever is earlier. Additionally, we welcome the government’s move towards boosting emerging technologies such as internet of things (IoT), machine learning (ML), artificial intelligence (AI) and analytics which will provide a filip to the country’s digital economy. We believe that with all of these measures, 2020 will be a great year for the Indian startup ecosystem.”