Monday, 1 February 2021

Union Budget Statement and Viewpoints of Various Clients

Union Budget Statement and Viewpoints of Various Clients: Shriram Transport Finance, Muthoot Finance, BSE, Bank of India, DBS Bank, Mswipe, Hinduja Group, ICICI Securities, ZebPay, ICICI Lombard, PNB Metlife

Client: Shriram Transport Finance

Spokesperson: Umesh Revankar, MD and CEO, Shriram Transport Finance


“The budget presented in a new digital format by Ms. Nirmala Sitharaman aims to revive the economy from the economic turmoil of COVID -19. We welcome the government’s enhanced outlay of Rs.1,18,101 lakh crores for Ministry of Road Transport and Highways and the decision to launch a voluntary vehicle scrapping policy to phase out old vehicles. This step will be beneficial as it is aimed at reducing vehicular pollution post undergoing a fitness tests after 20 years for PVs and 15 years for CVs. This will encourage vehicle owners to buy younger vehicles up to 10 years old and ultimately lead to more new vehicles sales. We support these government initiatives as these steps are beneficial for both our company and sector.”



Client: Muthoot Finance

Spokesperson: Mr.George Alexander Muthoot, MD, Muthoot Finance


“The 2021-22 budget has laid clear emphasis on economic growth and the financial services sector will play a crucial role in achieving the development goals of the government. Among the several business friendly announcements, some that stood out for us include net rationalisation of customs duty on gold by 2.5% which should bring more gold into the country through official channels and incentivising purchase of affordable homes by extending eligibility period for claiming additional deduction of interest paid of Rs. 1.5 lakh to 31st March 2022. Increasing FDI limit in insurance to 74% from 49% is another progressive announcement that will bring more investments and activity in this sector. Lastly, reflective of the importance of the MSME sector, the government has provided Rs. 15,700 cr for it, double of last year’s budgeted estimate and we stand steadfast with the MSMEs, individuals and entrepreneurs of India in financing and enabling their Atmanirbhar Bharat ambitions.”



Client: BSE

Spokesperson: Mr. Ashishkumar Chauhan, MD & CEO, BSE


“Over all, the Budget is big on large picture and vision despite the calamitous period we have witnessed last financial year . I would give it 9.5/10.The markets were buoyant reacting to the budget proposals as no new taxes and levies have been imposed. The rationalization of tax structures for FPIs, NRIs, InvITS and REITs will also help attract more funds for capital formation in India. A consolidated Securities Market Act, Domestic Gold Exchange regulator, LIC IPO, other PSU disinvestments by showing a clear cut forward path has given tremendous boost and strengthened the markets infrastructure framework for capital formation. Tax efficient zero coupon bonds for infra financing will bring in significant flows and enhance the role of the capital markets in nation building.”


Client: Bank of India

Spokesperson: Shri A. K. Das, Managing Director & CEO, Bank of India


Bold initiatives and a strong resolve to pump prime Indian economy


Union Budget announcements feature bold initiatives and a strong resolve to pump prime Indian economy. The most fearless and progressive announcement relates to consciously going for fiscal slippage and in that bid, fast forward the V-shaped recovery in a broad based manner.  Re-visit of DFI framework, creation of ARC-AMC institution are few moves which provide feel good dimension to our real sector, including financial stability.


Client: DBS Bank

Spokesperson: Surojit Shome, Managing Director and CEO – DBS Bank India


“The Union Budget proposals for FY 21-22 outline several landmark proposals on much-needed reforms to fund a strong growth oriented multi-year program of capex-led recovery post a black swan event.  It is encouraging to see the FM target policy reforms and boost capital infusion into the infrastructure, SME and start-up sectors recognising them as engines of growth in the post-pandemic revival. The thrust on digital payments, e-resolution of tax related disputes and the first virtual census also underlines the Government’s focus and continued thrust on digital infrastructure.”


Client: Mswipe

Spokesperson: Manish Patel, 

Mswipe Founder and CEO Manish Patel said,

“Small retailers and kiranas were instrumental in growing the share of digital payments in India and in providing easy payment solutions to their customers since the onset of COVID 19. The budget provision of Rs.1500 crore to incentivize digital modes of payments comes as a recognition of these very efforts and will go a long way in encouraging Small and Medium Enterprises (SMEs) to switch to accepting digital payments. The announcement by the Honourable Finance Minister Nirmala Sitharaman has met the industry’s expectation of providing financial incentives that enable small businesses to adopt digital solutions. As India’s largest POS acquirer and end-to-end digital enabler of SMEs, Mswipe sees this as a great boost for digital payments infrastructure as well as growth in share of small businesses in online commerce. Further, the budget allocation of Rs.15,700 crore to support the Micro, Small and Medium Enterprises (MSMEs), which is more than double of this year’s budget estimate, is also a positive step. Similarly, the proposed development of a world class fintech hub at GIFT-IFSC is yet another effort in the direction of placing India as a leading innovation ecosystem on the global fintech map.” 


Client: Hinduja Group

Spokesperson: 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.”



Client: Hitachi Payments

Spokesperson: Mr. Rustom Irani, MD and CEO, Hitachi Payment Services on India Budget 2021


"In the last few years, the government has taken multiple measures to push digital payments in the country. By allocating Rs 1,500 cr for a scheme for financial incentives to boost digital payments and steps to support the development of a world-class Fin-Tech hub in India, will further drive digital payment penetration in the country.”


Client: ICICI Securities

Spokesperson: Mr. Vijay Chandok, MD & CEO - ICICI Securities



The Union Budget has set the foundation for the lifting of Indian economy from under US$ 3 trillion to US$ 5 trillion. The Budget focusses on making India Atmanirbhar by investing big in infrastructure, manufacturing and healthcare, to be aptly funded through higher fiscal deficit, in a benign interest rate scenario. The enhanced capex for Infra and manufacturing measures are likely to be key in generating overall demand as well as drive employment generation. Monetization of infra assets, divestment plans of non-core asset and conducive tax compliance is likely to attract the much needed foreign capital. Additionally, measures to strengthen domestic financial sector through capitalization of PSU banks, proposal to set up a Development Financial Institution, and stabile direct and indirect taxes are likely to provide the much desired impetus to growth and equity markets, post Covid induced economic pain.





Client: ZebPay


Spokesperson; Mr. Rahul Pagidipati, CEO, ZebPay


“We are excited to see a budget that put priority on healthcare and economic growth. Blockchain and crypto assets can play a positive role in improving healthcare delivery and financial inclusion. Moving forward on crypto regulation will allow India to take full advantage of this technology.

Until that time, we’ll continue to self-regulate with strict KYC and AML policies. And we’ll stand ready to have an honest, positive dialogue with the government about this new asset class the whole world is investing in and how blockchain technology can help in various sectors including the budget priorities like healthcare, agriculture, and the first digital census.”



Client: ICICI Lombard

Spokesperson: from Bhargav Dasgupta, MD & CEO of ICICI Lombard General Insurance.



“The non-life insurance sector finally witnessed a long-standing demand being fulfilled in terms of increase in FDI limit to 74%. This should catalyse the long-term development and growth of the industry. At the same time, steps such as privatization, increased allocation to healthcare and infrastructure, voluntary scrapping of vehicles policy are positive for the sector. What remains to be seen is the timely implementation of these measures.”


Client: PNB Metlife

Spokesperson: Ashish Kumar Srivastava, MD & CEO of PNB MetLife.


“We applaud this significant step towards 74%, this will provide a boost to the sector, and we look forward to the amendment to be come into effect at the earliest. We welcome the tax free pension for elderly citizens above the age of 75 years.”




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