Mr. Gopichand. P. Hinduja, Co-Chairman, Hinduja Group -
“The finance minister, Mrs. Nirmala Sitharaman, must be congratulated for presenting a pathbreaking, inclusive budget in these unprecedented times. The high fiscal deficit would be a worry for many, however, these uncertain times call for high government spending. The proposed capital expenditure of Rs. 5.54 lakh crores, 34.5% higher than the current year augurs well for the infrastructure, manufacturing industry and job creation.
She has ensured capital allocation towards social welfare schemes, health sector, aspirational India and good governance.
The bold BFSI reforms announced of creating pathway for transferring NPAs from PSB balance sheets will spur the lending activity.
The government’s decision to increase FDI in the insurance sector, monetization of government assets will boost global investors sentiments and should greatly contribute to the advancement of India in Ease of Doing Business Index. Disinvestment target set by the government is encouraging however, it should be completed in the stated timeframe.
The budget also encourages an entrepreneurial eco system in the country through one-person company. The long-awaited voluntary vehicle scrappage scheme to phase out old vehicles to curb environmental pollution and oil imports will give an impetus to the automotive industry. The extension of tax holiday for start-ups and increased allocation for research and development will encourage innovation. Tax relief provided to Non Resident Investors is a welcome move but a lot more could have been done for encouraging investments through NRIs.
The decision to set up a Development Finance Institution is very encouraging and I hope we learn from our past and this time create a world class institution.”