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
Quote
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.
Unquote
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.”
