union budget 2016 reactions.docx

7/24/2019 UNION BUDGET 2016 REACTIONS.docx

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Compiled By : Partho Ganguly March 1 2016

UNION BUDGET 2016

Highlights

INTRODUCTION

1. Growth of Econom !cc"l"r!t"# to $.6% in 201&'16.Ro()st growth !chi"*"# #"s+it" *"r )nf!*o)r!(l" glo(!l

con#itions !n# two cons"c)ti*" "!rs shortf!ll in monsoon

( 1,% 2. In#i! h!il"# !s ! -(right s+ot !mi#st ! slowing

glo(!l "conom ( I/.

D"s+it" incr"!s"# #"*ol)tion to t!t"s ( &&% !s ! r"s)lt

of th" 1th in!nc" Commission !w!r#3 +l!n "4+"n#it)r"

incr"!s"# !t RE st!g" in 201&'16 5 in contr!st to "!rli"r

"!rs. ,. or"ign "4ch!ng" r"s"r*"s to)ch"# high"st "*"r

l"*"l of !(o)t ,&0 (illion U #oll!rs.

CH77ENGE IN 2016'1$

1. Ris8s of f)rth"r glo(!l slow#own !n# t)r()l"nc".

2. ##ition!l 9sc!l ()r#"n #)" to $th C"ntr!l :!

Commission r"comm"n#!tions !n# ORO:.


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ROD/: ; :RIORITIE


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1. 'Transform India' to have a signicant impact on economy andlives of people.

2. Government to focus on

a)ensuring macro-economic staility and prudent scal

management.

) oosting on domestic demand

c) continuing !ith the pace of economic reforms and policy

initiatives to change the lives of our people for the etter.

". #ocus on enhancing e$penditure in priority areas of - farm and

rural sector% social sector% infrastructure sector employment

generation and recapitalisation of the an&s.

. #ocus on (ulnerale sections through

a) *radhan +antri #asal ,ima oana

) /e! health insurance scheme to protect against hospitalisation

e$penditure

c) facility of coo&ing gas connection for ,*0 families

. ontinue !ith the ongoing reform programme and ensure

passage of the Goods and 3ervice Ta$ ill and Insolvency and,an&ruptcy la!

4. 5nderta&e important reforms y

a) giving a statutory ac&ing to 667869 platform to ensure

enets reach the deserving.

) freeing the transport sector from constraints and restrictions

c) incentivising gas discovery and e$ploration y providing

calirated mar&eting freedom

d) enactment of a comprehensive la! to deal !ith resolution ofnancial rms

e) provide legal frame!or& for dispute resolution and re-

negotiations in *** proects and pulic utility contracts

f) underta&e important an&ing sector reforms and pulic listing


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of general insurance companies underta&e signicant changes in#7I policy.

GRICU7TURE ND R/ER


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1. 6llocation for 6griculture and #armers: !elfare is 9s "%;rishi 3inchai oana: to e implemented in

mission mode. 2


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crore.1. 9s


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OCI7 ECTOR INC7UDING HE7TH CRE


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1. 6llocation for social sector including education and health care 9s 1%1%OB CRETION


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1. 42 ne! /avodaya (idyalayas !ill e opened2. 3arva 3hi&sha 6hiyan to increasing focus on Kuality of

education

". 9egulatory architecture to e provided to ten pulic and ten

private institutions to emerge as !orld-class Teaching and

9esearch Institutions

. 8igher Aducation #inancing 6gency to e set-up !ith initial

capital ase of 9s 1@@@ rores

. 7igital 7epository for 3chool 0eaving erticates% ollege

7egrees% 6cademic 6!ards and +ar& sheets to e set-up.

RUR7 ECONO/?


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1. 6llocation for rural sector - 9s


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1. ommitted to providing a stale and predictale ta$ationregime and reduce lac& money.

2. 7omestic ta$payers can declare undisclosed income or such

income represented in the form of any asset y paying ta$ at

"@F% and surcharge at B.F and penalty at B.F% !hich is a total

of F of the undisclosed income. 7eclarants !ill have immunity

from prosecution.

". 3urcharge levied at B.F of undisclosed income !ill e called

>rishi >alyan surcharge to e used for agriculture and rural

economy.

. /e! 7ispute 9esolution 3cheme to e introduced. /o penalty in

respect of cases !ith disputed ta$ up to ?9s1@ la&h. ases !ith

disputed ta$ e$ceeding ?9s 1@ la&h to e suected to 2F of the

minimum of the imposale penalty. 6ny pending appeal against a

penalty order can also 1 e settled y paying 2F of the

minimum of the imposale penalty and ta$ interest on Kuantum

addition.

. 8igh 0evel ommittee chaired y 9evenue 3ecretary to overseefresh cases !here assessing oOcer applies the retrospective

amendment.

4. Dne-time scheme of 7ispute 9esolution for ongoing cases

under retrospective amendment.

B. *enalty rates to e @F of ta$ in case of underreporting of

income and 2@@F of ta$ !here there is misreporting of facts.


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once the assesse pays 1F of the disputed demand% !hile theappeal is pending efore ommissioner of Income-ta$ P6ppeals).

11. +onetary limit for deciding an appeal y a single memer

,ench of IT6T enhanced from 9s 1 la&hs to 9s @ la&hs.

12. 11 ne! enches of ustoms% A$cise and 3ervice Ta$ 6ppellate

Triunal PA3T6T).

=I77 DE@E7O:/ENT

1. lloc!tion for s8ill #"*"lo+m"nt 5 Rs 1A0. cror"

2. 1&00 /)lti 8ill Tr!ining Instit)t"s to (" s"t')+

,. N!tion!l Bo!r# for 8ill D"*"lo+m"nt C"rti9c!tion to ("

s"t)+ in +!rtn"rshi+ with th" in#)str !n# !c!#"mi!

. Entr"+r"n")rshi+ E#)c!tion !n# Tr!ining thro)gh

/!ssi*" O+"n Onlin" Co)rs"s

>OB CRETION

1. GoI will +! contri()tion of A.,,% for of !ll n"w

"m+lo""s "nrolling in E:O for th" 9rst thr"" "!rs of

th"ir "m+lom"nt. B)#g"t +ro*ision of Rs 1000 cror" for

this sch"m".

2. D"#)ction )n#"r "ction A0>> of th" Incom" T!4 ct

will (" !*!il!(l" to !ll !ss"ss"s who !r" s)("ct to

st!t)tor !)#it )n#"r th" ct,. 100 /o#"l C!r""r C"ntr"s to o+"r!tion!l ( th" "n# of

2016'1$ )n#"r N!tion!l C!r""r "r*ic".

. /o#"l ho+s !n# Est!(lishm"nts Bill to (" circ)l!t"# to

t!t"s.


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INRTRUCTURE ND IN@ET/ENT


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1. Tot!l in*"stm"nt in th" ro!# s"ctor3 incl)#ing :/G?!lloc!tion3 wo)l# (" Rs $3000 cror" #)ring 2016'1$.

2. In#i!s high"st "*"r 8ilom"tr"s of n"w highw!s w"r"

!w!r#"# in 201&.

,. To !++ro*" n"!rl 103000 8ms of N!tion!l Highw!s in

2016'1$.

. lloc!tion of &&3000 cror" in th" B)#g"t for Ro!#s.

##ition!l Rs 1&3000 cror" to (" r!is"# ( NHI thro)gh

(on#s.

&. Tot!l o)tl! for infr!str)ct)r" ' Rs 2321326 cror".

6. m"n#m"nts to (" m!#" in /otor @"hicl"s ct to o+"n

)+ th" ro!# tr!ns+ort s"ctor in th" +!ss"ng"r s"gm"nt

$. ction +l!n for r"*i*!l of )ns"r*"# !n# )n#"rs"r*"#

!ir+orts to (" #r!wn )+ in +!rtn"rshi+ with t!t"

Go*"rnm"nts.

A. To +ro*i#" c!li(r!t"# m!r8"ting fr""#om in or#"r to

inc"nti*is" g!s +ro#)ction from #""+'w!t"r3 )ltr! #""+'

w!t"r !n# high +r"ss)r"'high t"m+"r!t)r" !r"!s. Com+r"h"nsi*" +l!n3 s+!nning n"4t 1& to 20 "!rs3 to

!)gm"nt th" in*"stm"nt in n)cl"!r +ow"r g"n"r!tion to

(" #r!wn )+.

:)(lic Utilit R"sol)tion of Dis+)t"sF Bill will ("

intro#)c"# #)ring 2016'1$10. t"+s to r"'*it!lis" :::s

11. G)i#"lin"s for r"n"goti!tion of ::: Conc"ssion

gr""m"nts will (" iss)"#

12. N"w cr"#it r!ting sst"m for infr!str)ct)r" +ro"cts to(" intro#)c"#

1,. R"forms in DI +olic in th" !r"!s of Ins)r!nc" !n#

:"nsion3 ss"t

1. R"constr)ction Com+!ni"s3 toc8 E4ch!ng"s.

1&. 100% DI to (" !llow"# thro)gh I:B ro)t" in


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m!r8"ting of foo# +ro#)cts +ro#)c"# !n# m!n)f!ct)r"# inIn#i!.

16. n"w +olic for m!n!g"m"nt of Go*"rnm"nt

in*"stm"nt in :)(lic "ctor Ent"r+ris"s3 incl)#ing

#isin*"stm"nt !n# str!t"gic s!l"3 $ !++ro*"#.

INNCI7 ECTOR REOR/


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1. com+r"h"nsi*" Co#" on R"sol)tion of in!nci!l irmsto (" intro#)c"#.

2. t!t)tor (!sis for ! /on"t!r :olic fr!m"wor8 !n# !

/on"t!r :olic Committ"" thro)gh th" in!nc" Bill 2016.

,. in!nci!l D!t! /!n!g"m"nt C"ntr" to (" s"t )+.

. RBI to f!cilit!t" r"t!il +!rtici+!tion in Go*"rnm"nt

s"c)riti"s.

&. N"w #"ri*!ti*" +ro#)cts will (" #"*"lo+"# ( EBI in

th" Commo#it D"ri*!ti*"s m!r8"t.

6. m"n#m"nts in th" REI ct 2002 to "n!(l" th"

s+onsor of !n RC to hol# )+ to 100% st!8" in th" RC

!n# +"rmit non instit)tion!l in*"stors to in*"st in

"c)riti!tion R"c"i+ts. $. Com+r"h"nsi*" C"ntr!l

7"gisl!tion to (" (o)ght to #"!l with th" m"n!c" of illicit

#"+osit t!8ing sch"m"s.

A. Incr"!sing m"m("rs !n# ("nch"s of th" "c)riti"s

++"ll!t" Tri()n!l.

. lloc!tion of 2&3000 cror" tow!r#s r"c!+it!lis!tion of:)(lic "ctor B!n8s.

10. T!rg"t of !mo)nt s!nction"# )n#"r :r!#h!n /!ntri

/)#r! ?o!n! incr"!s"# to Rs 13A03000 cror".

11. G"n"r!l Ins)r!nc" Com+!ni"s own"# ( th"

Go*"rnm"nt to (" list"# in th" stoc8 "4ch!ng"s.

GO@ERNNCE ND EE O DOING BUINE


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1. T!s8 orc" h!s (""n constit)t"# for r!tion!lis!tionof h)m!n r"so)rc"s in *!rio)s /inistri"s.

2. Com+r"h"nsi*" r"*i"w !n# r!tion!lis!tion of

)tonomo)s Bo#i"s.

,. Bill for T!rg"t"# D"li*"r of in!nci!l !n# Oth"r

)(si#i"s3 B"n"9ts !n# "r*ic"s ( )sing th" !#h!r

fr!m"wor8 to (" intro#)c"#.

. Intro#)c" DBT on +ilot (!sis for f"rtili"r.

&. )tom!tion f!ciliti"s will (" +ro*i#"# in , l!8h f!ir

+ric" sho+s ( /!rch 201$.

6. m"n#m"nts in Com+!ni"s ct to im+ro*" "n!(ling

"n*ironm"nt for st!rt')+s.

$. :ric" t!(ilis!tion )n# with ! cor+)s of 00

cror" to h"l+ m!int!in st!(l" +ric"s of :)ls"s.

A. E8 Bh!r!t hr"shth! Bh!r!tJ +rogr!mm" will ("

l!)nch"# to lin8 t!t"s !n# Districts in !n !nn)!l

+rogr!mm" th!t conn"cts +"o+l" thro)gh "4ch!ng"s

in !r"!s of l!ng)!g"3 tr!#"3 c)lt)r"3 tr!*"l !n#to)rism.


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,DD3T A+*0D+A/T 6/7 G9DET8 1. Increase theturnover limit under *resumptive ta$ation scheme under

section 67 of the Income Ta$ 6ct to ? 2 crores to ring ig

relief to a large numer of assessees in the +3+A category.

2. A$tend the presumptive ta$ation scheme !ith prot

deemed to e @F% to professionals !ith gross receipts up to

9s @ la&h.

6ccelerated depreciation !herever provided in IT 6ct !ill e

limited to ma$imum @F from 1..2@1B". *hasing out

deduction under Income Ta$

. ,enet of deductions for 9esearch !ould e limited to

1@F from 1..2@1B and 1@@F from 1..2@2@

. ,enet of section 1@66 to ne! 3AQ units !ill e availale

to those units !hich commence activity efore "1.".2@2@.

4. The !eighted deduction under section "7 for s&ill

development !ill continue up to 1..2@2@

/e! manufacturing companies incorporated on or after

1.".2@14 to e given an option to e ta$ed at 2F R

surcharge and cess provided they do not claim prot lin&ed

or investment lin&ed deductions and do not avail of

investment allo!ance and accelerated depreciation.B.

orporate Ta$ rate proposals


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11. omplete pass through of income-ta$ to securitiCationtrusts including trusts of 69s. 3ecuritisation trusts reKuired

to deduct ta$ at source.

12. *eriod for getting enet of long term capital gain

regime in case of unlisted companies is proposed to e

reduced from three to t!o years.

1". /on-an&ing nancial companies shall e eligile for

deduction to the e$tent of F of its income in respect of

provision for ad and doutful dets.

1. 7etermination of residency of foreign company on the

asis of *lace of ASective +anagement P*DA+) is proposed

to e deferred y one year.

1. ommitment to implement General 6nti 6voidance 9ules

PG669) from 1..2@1B.

14. A$emption of service ta$ on services provided under

7een 7ayal 5padhyay Grameen >aushalya oana and

services provided y 6ssessing ,odies empanelled y

+inistry of 3&ill 7evelopment Antrepreneurship.1B. A$emption of 3ervice ta$ on general insurance services

provided under =/iramaya: 8ealth Insurance 3cheme

launched y /ational Trust for the Eelfare of *ersons !ith

6utism% ereral *alsy% +ental 9etardation and +ultiple

7isaility.

1


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Ch!ng"s in c)stoms !n# "4cis" #)t r!t"s on c"rt!inin+)ts to r"#)c" costs !n# im+ro*" com+"titi*"n"ss of

#om"stic in#)str in s"ctors li8" Inform!tion t"chnolog

h!r#w!r"3 c!+it!l goo#s3 #"f"nc" +ro#)ction3 t"4til"s3

min"r!l f)"ls ; min"r!l oils3 ch"mic!ls ; +"troch"mic!ls3

+!+"r3 +!+"r(o!r# ; n"ws+rint3 /!int"n!nc" r"+!ir !n#

o*"rh!)ling K/ROL of !ircr!fts !n# shi+ r"+!ir.

B)#g"t'2016'wh"r"'it's)r+ris"#'wh"r"'it'#is!++oint"#Fnance Minister Arun Jaitley presented his Union Budget in Parliament yesterday.

Where Jaitley Surprised

No increase in Service Ta

No changes to !ong Term "apital #ains ta on e$uities

%edressal mechanism &or in&rastructure pro'ects

Stayed (ith the &iscal consolidation road map

Steps to open up the road transportation sector )a*olish permit ra' over time+

%educed corporate ta &or ne( companies

,igh net (orth dividend earners )earning more than %s - la/h as dividend

income+ to pay additional - percent ta

STT increased

0omestic ta amnesty scheme announced

Where he disappointed

Not a *old *udget

No out o& the *o measures to *oost gro(th

Pu*lic sector investment may not *e enough to /ic/ start the investment cycle


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Just %s 123 crore &or PSU *an/ recapitalisation4 seen as inade$uate No ma'or announcement on *an/ing sector re&orms

5n&ra cess on cars )they (ill no( turn costlier3 especially diesel cars (hich carry

a higher cess+

No across the *oard reduction in corporate ta that (as /eenly anticipated

0ivestment target on the lo(er side3 raises concerns a*out revenue mo*ilisation

Industry Reactions

The Union Budget 2016 continues to rightly focus on rural and

infrastructure sector. The planned investment in these two critical sector will

not only create jobs but also give impetus to demand generation and

economic growth.The governments proposal to create e!mar"et for our

farmers through #Unified $gri %ar"eting platform is very bold and forward

loo"ing and will positively impact countrys farmers. &e will continue to

strengthen our 'irect (arm programme to complement government visionto ma"e a difference to the lives of our millions of farmers. The continued

focus on ease of doing business) as highlighted by (inance %inister $run

*aitley augurs very well for the industry. +ecognition of retail trade as the

largest service sector employer in the country and proposed focus to simplify

the regulations for retail sector is very laudable. The +etail sector in ,ndia is

currently the hotbed of economic growth. The sector has made noteworthy

progress over the last two decades) with rise in disposable earnings) shift in

youth populous and an attitudinal shift in consumer preferences. ,ndia is a

domestic consumption driven growth story and therefore this support -

encouragement to the retail trade will surely further drive consumption)

which in turn will help manufacturing sector and job creation.

The decision by the government to allow up to 100 foreign direct

investment /(', through (,B in mar"eting of food products produced and

manufactured in ,ndia is very progressive and will help in reducing


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wastage) helping farm diversification and encourage industry to produce

locally within the country. This far reaching reform will benefit farmers)

give impetus to food processing industry and create vast employment

opportunities.

- Krish Iyer, president & CEO Walmart India

overnment has been facing many challenges and "eeping the fiscal

discipline in control is one of the most significant one) especially) when theworld economy is passing through major socio!political turbulence. 3eeping

the fiscal deficit at 4.5 and yet meeting the growth - social objectives is a

difficult tas" which the (inance %inister has attempted to solve. There are

no major negative surprises during these challenging times and thats good

about this budget. $ll the sectors vi7. agriculture) infrastructure) oil - gas)

realty) rural development) manufacturing) ban"ing - ta8 reforms have been

well addressed. (ocus on infrastructure - rural sector) which are the

bac"bone of the economy - society) provides major impetus to the industries

in the long term. 9verall this years budget can be termed as a good effort.

- Aditya V Agarwal, director, Emami Group

9verall) this is a responsible :+ural (irst; budget that attempts to revive

demand) while continuing on the path of fiscal consolidation. (or the (%


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in the system to drive private capital investment. oing forward) given the

plethora of schemes that have been announced) it will be important to deliver

on the promises made through effective on!the!ground e8ecution.

- Vie! Gam"hir, managing director, Godre# Consumer $roducts

%imited

The budget was reasonably well!balanced. The government has done a good

job of stic"ing to the fiscal deficit target of 4.5 percent for the ne8t year.

There have been some good initiatives concerning agriculture reforms) social

sector spending and rural electrification that have been announced. The

impetus provided to the real estate sector through higher ta8 e8emption limit

for home loan borrowers) higher allowance for ta8 deduction on account of

rent paid and ta8 benefit for +?,Ts is a welcome step. The additional ta8 on

dividend that individuals and firms will have to pay in e8cess of +s10 la"hper annum is a negative. +aising ta8 rates has never been a productive step

and goes against the re>uirement of development and growth.

- Adi Godre#, chairman, Godre# Group

9verall) this is a responsible :+ural (irst; budget that attempts to revive

demand) while continuing on the path of fiscal consolidation. (or the (%


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consumer confidence. iven the overnments intent to stic" to its path of

fiscal consolidation) we loo" forward to an interest rate cut or more li>uidity

in the system to drive private capital investment. oing forward) given the

plethora of schemes that have been announced) it will be important to deliver

on the promises made through effective on!the!ground e8ecution.

- Vie! Gam"hir, managing director, Godre# Consumer $roducts

%imited

@ots of useful measures announced. &e have to see how they get detailed for

eg. the dispute resolution.,f you loo" at every Budget in the last 20 years)

what the mar"et shows immediately after the Budget means little.

- aushad 'or"es, co-chairman, 'or"es (arshall

(% seems to have covered all the critical areas that were being tal"ed about)

whether it was rural economy) agriculture) infrastructure) ta8

simplification) etc. Ae seems to have covered a lot of ground in this and at

the same time stuc" to the (+B% target) which especially for me was a bit of

a surprise because there is additional spend on 9+9 and salary increases.=o if he is doing this) , would say full mar"s to him on that. The higher ta8 on

higher income is something that was e8pected because to be able to meet the

maths of the additional spends you have to find some sources of revenue.

,thin" overall hes done a very good job.

- )unil Kant (un#al, #oint managing director, *ero (otoCorp

, dont have a problem with this e8tra ta8 /on =UCs and lu8ury cars. , wish

this e8tra ta8 on vehicles) as they called it a green ta8) is used for removingB= 1 and 2 vehicles and promoting electrical and hybrid vehicles) , will be

very happy. , am very pleased with the first part of the Budget) the policy

issues that he has announced. , thin" its very forward!loo"ing.

- Vi!ram Kirlos!ar, ice chairman, +oyota Kirlos!ar (otor $t %td


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:The nation would have to wait and see its implementation) but the Budget

definitely generates substantial amount of positive sentiments. ,t has a

vision of the government to bring out stability and e>uitable growth in the

country. =tructurally sorted budget with ade>uate emphasis on agriculture)

rural ,ndia) infrastructure and health which will reap benefits in the long

run.

,t may not be a populous one with incentives but there is enough balancing

which has not harmed the common man rather aims at incentivising

entrepreneurship in some segments. Benefits of deductions to income below

5 la"h) e8emptions on pensions and increase in deductions limits on homeloan interest and incentivising low cost housing are good measure.

$lthough there is nothing direct for the industry or for that matter

manufacturing sector) there is enough scope to generate demand and "ic"

start the industry. The proposed spending on infrastructure and rural

development definitely has the ingredient to get things going) provided the

e8ecutions are done well. The attempt to reduce ta8 litigation is positive on

the Dease of doing businessD front.;

r aghupati )inghania - Chairman and (anaging irector, .K

+yre & Industries %td/

We welcome this budget as it is positive and growth oriented with a clear view

to uplift the rural economy.

The budget will result in major change in the sectors of agriculture and farmer

welfare, rural development, infrastructure, social sector development and

manufacturing among others. This is expected to result in increased

employment, boost to entrepreneurship, better healthcare system andincreased ease of doing business, all of which are pivotal to growth of the

economy.

I congratulate the finance minister for taking definitive steps to address

concerns of the global slowdown. Spurring rural development, focus on job


26/40


creation and increasing consumer demand and exports are steps in the right

direction for the Indian economy. The finance minister has maintained the

fiscal discipline path by setting the fiscal deficit target of .!" in #$%&.

The budget also reiterates the mission and vision of the government to achieve

long term self'sufficiency and sustainability, create the necessary support

infrastructure and enhance the nation(s literacy rate.

)n renewable energy specifically, as part of rural development, the

government continues on its plan to providing %**" electrification by %st +ay,*%-. This poses incredible opportunity for the renewable sector and to boost

rural economy. t the same time, coal cess has been doubled to /s.

0**1tonne, thereby, creating the resources to achieve *'!" carbon

emissions reduction target outlined by India at 2)3% this year and also

%&!4W renewables target by *.

#urther, government commitment to improve grid infrastructure is reflected

in the proposed additional depreciation for the plant and machinery ac5uired,

installed for transmission activity.

The excise duty reduction from %.!" to 6" on materials used for parts and

sub'parts of rotor blades for wind operated electricity generators is a positive

move. 7owever, the government should review the increase in excise duty of

unsaturated 3olyester /esin 8polyester based infusion resin and hand layup

resin9, 7ardeners17ardener for adhesive resin, :inyl ;aster dhesive 8:;9

and ;poxy /esin used for manufacture of rotor blades. lso, the imposition of

service tax on freight charges incurred for transport of goods by sea willadversely impact the competitiveness of Wind turbine manufacturing in India

and hence the finance minister should also review the same.

We hope the government will reconsider the ccelerated


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*, aligned to the government target of %&!4W renewables by * and to

boost manufacturing under the +ake in India vision.

(r +ulsi +anti, Chairman and (anaging irector, )u0lon Group/

9ur (inance %inister has very rightly given very high priority to rural

infrastructure in general and agricultural sector in particular. $part from

all the pro!agricultural initiatives announced) the (inance %inister has laid

out the road map for the overnments ambitious aim to double farmers

income in the ne8t five years. $ll these measures will go a long way in

improving the livelihood of the farmers which forms a very large portion ofour population. This is e8pected to reform the agricultural mar"ets. Thrust

on the rural sector and social sector) including healthcare) educational s"ills

and job creation) to ma"e ,ndia a "nowledge!based productive economy. ,

e8pect these measures to give a strong impetus to the demand for C< pipes

and fittings in the years to come. The incentives for low cost housing also

augur well for the demand for C< pipes and fittings in the construction

sector.

$ra!ash Chha"ria, E1ecutie Chairman, 'inole1 Industries %td

The Budget is pragmatic and growth!oriented. The overnments

commitment for retaining the fiscal deficit at 4.5 will have sobering effect

on the interest rate in general and on the yields of government and

corporate bonds in particular. This will place our economy in the double

digit growth trajectory.


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- Asho! $ *indu#a, Chairman, *indu#a Group o2 Companies

3India4

The (inance %inister has ta"en a cautious) yet courageous path with his

budget announcements. ,t will reap long!term benefits for the economy on a

whole. The (% in order to promote +?,Ts in the country has provided an

e8emption to 'ividend 'istribution to =Cs where the +?,Ts have specified

shareholding.

9n the affordable housing front the government seems to ta"e active steps

towards its Aousing for $ll %ission) wherein various sops have been

provided. ?8emption from service ta8 on construction of houses up to 60

s>uare meters under any scheme of the


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story of the country by unloc"ing value.

- Kamal Khetan, C(, )untec! ealty %td

The (inance %inister has managed to carve out a well!balanced budget

proposition with a good spread of focus across major sectors while

addressing issues of business and economic relevance. The F!pillar approach

lays specific focus on industry sectors while slicing out timely and feasible

objectives with clarity for e8ecution.

The current budget lays tremendous focus on rural development and

resource mobili7ation for the rural economy while endorsing technology as a

"ey platform for ensuring accountability and ease of operations.

%oreover the digital literacy scheme proposed to cover 6 crore additional

rural households comes in as a very welcome move. Targeting more than

G0 of the countrys population and enhancing digital literacy in this

segment will ensure deeper penetration of the digital platform in rural ,ndia

while driving the macro scheme of #'igital ,ndia and 'igital %oney with arenewed vigor.

- aeen )urya, (, It0Cash

(rom a rating perspective) the budget for (J1G contains a number of positive

elements) even though it is subject to substantial uncertainty.

(irstly) the government continues to gradually broaden its ambitious reform

program and li"e last year this budget contains some further

announcements of reforms) including measures related to the (', regime)the financial sector and agriculture.

=econdly) fiscal credibility is supported by the central government meeting

its budget deficit target of 4.F for (J16) as well as by the choice to maintain

the previously communicated target of 4.5 of ' for (J1G.


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The acceleration of the targeted revenue growth to 1H percent in (J1G from

nine percent in (J16 is subject to substantial uncertainty related to '

growth. $t the same time) revenue growth is supported to some e8tent by a

number of ta8 measures) including increased e8cise duties on various

tobacco products and a one percent ta8 on lu8ury cars.

- +homas oo!maa!er, group director, 'itch5s Asia-$aci2ic

)oereign

=The #+ has delivered a fiscally responsible budget. The extension of S;>scheme till ** and reduced tax at %*" for global revenues generated by

India'registered I3/ will further energise entrepreneurship. The #+ has

announced a slew of


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strong signal to global investors. The increased infrastructure push) reforms

in the financial sector and steps to boost $+


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Arundhati 6hattacharya ,Chairman, )6I

It(s a balanced budget with an overarching theme of reali@ing inclusive and

staggered economic growth, without stepping down on the path of fiscal

prudence. mongst positives, focus on infrastructure development, fixing

distressed asset concerns of financial sector, employment generation through

indigeni@ation stand out. Aankruptcy code and a framework for commercial

dispute settlement under 333 framework are the two most significant

regulatory reforms rolled out.

(u!esh 6utani, (anaging $artner, 6( %egal

&ell!balanced budget. (% shown determination to "eep fiscal deficit at

4.5.

&e were e8pecting focus on rural economy and infrastructure and (% has

done that. (% has touched on every aspect. ,ts a well!rounded) progressive

Budget.

- )umit (a0umder, president, CII


33/40


The Bnion Audget for *%6'*%& has been presented and reactions are now

pouring in from various sectors. The technology industry has reacted

favourably to the budget. 7ere are the top reactions so far.

ataWind

Suneet Singh Tuli, 2;),


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skilling them, we are very happy to be an active contributor to the

government(s Skill India initiative. 7owever, the withdrawal of A2


35/40


=We welcome the government(s initiative as this will help in building digital

infrastructure from the ground up that will help India grow much faster and

better to enable economic growth.


36/40


different markets. Start'ups getting %**" tax exemption for years except

+T is again a good call taken by the government, as this will entice budding

entrepreneurs to start their own business and since we are targeting this

sector for our software business, it could prove beneficial for us as well.

Aesides, it will also help in creation of more and more jobs in the country.

)verall, it(s a balanced and realistic budget in difficult times.?

(icroma1

/ajesh garwal, 2o'#ounder, +icromax Informatics said in a statement, =The

budget significantly focuses on stimulating growth in the country whileemphasi@ing on his nine pillars G agriculture and farmers( welfare, rural

sector, social sector including healthcare, education, skills and job creation,

infrastructure, financial sector reforms, ease of doing business, fiscal

discipline, tax reforms to reduce compliance burden.?

=The growth focused Bnion Audget *%6'*%& is announced in the light of

stressed global slowdown, yet it is heartening to see how the growth has

accelerated to &.6" and the 23I inflation has come down to !.0". Bnion

#inance +inister had a herculean task cut out to meet the raising expectationfrom industry leaders and the aam aadmi as he presents his third general

budget. The Audget *%6 outlines the government(s commitment to

reinvigorate the economy, kick'start investment cycle and also maintain fiscal

prudence, but it remains to be seen on how 5uickly would we see the impact in

execution,? he adds.

%enoo

Sudhin +athur,


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the (o"ernment &i oo! to&ards to transform #ndia, is a &ecome mo"e,) he

said$

7is statement add, =In addition, the rationalisation of custom duties and

excise duties for raw materials, manufacturing for the IT and 7ardware sector

apart from various sectors to boost the 4overnment(s H+ake In India( sector

are definitely going to boost the manufacturing sector and lower costs for

firms looking to do business in India.?

+eanwhile, /ahul garwal, +


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broad category of inputs including parts, components and sub'parts has been

exempted from excise as well as 2:< of customs when used for manufacture(,

said +ohindroo.

7e further says that, =s per estimates the total production output of approx.

/s &*** L /s %*,*** crores of mobile adapter 1 charger, battery and wired

headsets production can be achieved by *%-, based on this important

initiative.?

Intel India


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=;nhanced investment in the budget for infrastructure, agriculture, rural and

social sectors would support India(s continued journey of inclusive and

sustainable growth. 3rotected and secure technology infrastructure fostering

trust will be critical to success of projects like e'marketplace, digital vaults for

certificates and e'procurement. Fegislative backing for adhaar should have

re5uisite privacy provisions. )verall, a prudent budget, indeed,? said Shrikant

Shitole, +anaging


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