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Budget 2020 - 2021
Economic Survey Preview Announcement Articles Reactions Budget Special

 
Dr. U S Awasthi, MD, IFFCO
A welcome initiative by our FM @nsitharaman ji to make use of efficient & balanced use of fertilizers in our soils to enhance the soil health & it's productivity. #IFFCO is already working on this by its #SaveTheSoil project. On behalf of #IFFCO & it's more than 36,000 #cooperative societies, I welcome the proposal of exempting #cooperative societies from minimum alternate tax & also bringing tax rate for cooperative societies to 22% from 30%. I also thank our finance minister @nsitharaman ji for considering & taking care of #cooperatives in this #Budget2020 by lowering tax on cooperatives to 22% in tune with Corporate Tax; a welcome step. These steps will indeed help the cooperatives to work in a dynamic manner and can bring more innovations for the farmers of the country.
 
Mukesh Kalra, Founder & CEO - ETMONEY
"The Finance Minister's proposal to introduce new tax regime is a great step towards giving equal chance to every Indian in lower income segment to maximize their post tax incomes. In the old regime, an individual supporting a larger family & negligible savings was forced to pay higher tax compared to an individual supporting a smaller family or one with no dependents. This created disparity when it came to effective taxation for the former group. In the new regime, the disparity ends & also frees up income in hands of individuals to give a boost to consumption."
 
Mr. Tim Nicolle, Founder, PrimaDollar
"The Finance Minister's announcements under Union Budget 2020 introducing new schemes will help the small players in the export sector in a big way. The new Nirvik scheme introduces high insurance cover for exporters at a reduced premium. Simplified processes for faster claim settlements will be beneficial for both the exporters and the general insurers.It will lead to providing high insurance cover, reduction in premium for small exporters and simplified procedures for claim settlements,this will encourage export finance. This will boost exports. Coming to the MSMEs, the announcement for the subordinate debt for entrepreneurs is a big positive and will help the MSME sector benefit in a massive way. These seem to be sound measures that can stimulate profitable activities for players in the trade and finance sector."
 
Mr. Harsh Jain, Co-founder and COO, Groww
"The government's decision to spend Rs 6000 cr on Bharat Net, to increase accessibility to the internet, will give a huge boost to internet-based companies -fintech being a prominent sector that will be benefited from the move. This will enable e-commerce and fintech companies, particularly the ones operating in the investment and lending domains, to serve customers in parts of the country that are not served by more traditional offline service providers and increase their footprint."
 
Mr. Indroneel Dutt, CFO, Cleartrip
"The government has backed its vision to turn India into one of the world's top tourism hubs by allocating INR 2,500 crore for promoting tourism in general and setting aside a sum of INR 3100 crore for the Culture Ministry to boost regional tourism. What would be wonderful is to have an empowered nodal body comprising of the Govt / OTA / airline, hotel and other industry representatives with the objective of promoting discoverability, ease of booking and fulfillment of our cultural, natural and heritage sites. Introduction of more Tejas Express type trains and the inauguration of several culturally-significant archaeological sites are other much-needed moves. We also welcome the Hon'ble FM's proposal to develop 100 more airports as well as the doubling of the airline fleet by 2024. This calls for skilled manpower development in parallel. The aim to double the fleet to 1200 in the next 3 years will certainly accelerate the passenger growth rate."
 
Mr. Sushant Raorane, Co-Founder_Director Adroit Biomed
"A holistic effort by the government to facilitate ease of living and ease of doing business, the 2020 budget comes as a hope for the stagnant economy. With an allocation of INR 69,000 Cr. for the healthcare sector and INR 35,600 Cr. for nutrition-related programs, health and wellness have received due attention in the budget. Apart from the healthcare, promoting entrepreneurship and facilitating easy tax structures for business, strengthening the infrastructure and cold chain logistics as well as focus on skill development, are all areas that will hugely benefit the nutraceutical sector in India. As entrepreneurs in the nutraceuticals space - a promising sector with huge growth potential, I see tax policies like reduction in corporate tax for companies to 22%, removal of DDT and simplified return for GST is being introduced from April 2020, as impactful initiatives that will help drive business."
 
Vamsi Krishna, CEO & Co-founder, Vedantu
"The vision of making education accessible to the farthest corner of the country will greatly benefit students. The allocation of budget to hone the skill sets of teachers and educators will positively impact quality learning and thereby provide a boost to the education sector. Additionally the allocation of budget to BharatNet will also have a deep impact on skilling rural India as it has the potential to open up online learning to students and professionals from remote villages. With better bandwidth internet, a qualified teacher located in a metro city can impart LIVE online classes to students in small town India, where there's a dearth of quality education. Technology will soon disrupt the entire concept of the classroom and make it an extremely personalized, one to one teaching-learning experience tailored for each mind."
 
Jitendra Chaddah, Chairman, IESA
"The vision for the semiconductor and electronics industry in the budget speech is encouraging. We feel this interim budget by Finance Minister is progressive and inclusive. It focuses on leveraging new technologies to build countrywide digital infrastructure, skill-building and drives growth by providing cost benefits for electronics manufacturing in India. The scheme to boost the intelligent electronics & semiconductor ecosystem by the manufacturing of mobile phones, semiconductor packaging and electronic equipment, assures more investment. We foresee the sustained incentives by the government to promote local manufacturing will fulfil local demand and also enable India to become an export hub for electronics."
 
Saurabh Garg, Co-Founder & CBO (Chief Business Officer) of Nobroker.com
"We, like the rest of India, welcome Budget 2020 with open arms. The budget is a mixed bag with its positives and misses. In a commendable move, Government has extended support to affordable housing. The Government has extended an additional INR 1.5 lakh tax benefit on interest paid on affordable housing loans by one year. The extension of one year of Tax holiday on profits of developers involved in affordable housing projects is a clear-cut indication of higher allocation of resources towards affordable housing. This focus on affordable segments comes as a win-win situation for both sellers and buyers. The Government has also proposed measures to improve liquidity for NBFCs and HFCs. This would be a welcome move for the real estate sector which has been struggling with liquidity crisis. The boost to growth of infrastructure & transport are positive step to ease living in suburban parts of the cities. Announcement to create 5 new smart cities reinforce the Government's mission to provide Housing for All by 2022. However, tax exemptions on housing loan and interest payments have been removed. This will be negative for the real estate sector which is already undress stress. House rent deduction has also been taken away and will burden the tenants. We were also expecting the stamp duty to be reduced or subsumed partially in GST which has also not happened and is a significant expense for the buyer".
 
Indroneel Dutt, CFO, Cleartrip
"The government has backed its vision to turn India into one of the world's top tourism hubs by allocating INR 2,500 crore for promoting tourism in general and setting aside a sum of INR 3100 crore for the Culture Ministry to boost regional tourism. What would be wonderful is to have an empowered nodal body comprising of the Govt / OTA / airline, hotel and other industry representatives with the objective of promoting discoverability, ease of booking and fulfilment of our cultural, natural and heritage sites. Introduction of more Tejas Express type trains and the inauguration of several culturally-significant archaeological sites are other much-needed moves. We also welcome the Hon'ble FM's proposal to develop 100 more airports as well as the doubling of the airline fleet by 2024. This calls for skilled manpower development in parallel. The aim to double the fleet to 1200 in the next 3 years will certainly accelerate the passenger growth rate."
 
Sunil Gupta, MD & CEO, Avis India
"The Union budget takes a calibrated approach to boost the country's growth by investing in new infrastructure and ensuring clean air and environment for the people. Avis is a strong believer in making available transportation and infrastructure of the future, to build an environment-friendly economy. The allocation of Rs 1.7 lakh crore for transport infrastructure and the announcement of setting up 100 new airports under UDAN, is a big booster for travel and tourism in the country. At the same time, allotment of Rs 4,400 crore for clean air policies is a step in the pursuit of sustainable development. The scheme to boost electronic manufacturing in the country will also support the electric vehicle ecosystem in the country. Setting up of on-site museums at five archaeological sites will help promote tourism and on road-transport in the country. The vision of the current government is to promote the domestic industry, tourism, and entrepreneurs, and the budget lays down its foundation through focused policies in the same direction."
 
Anurag Avula, Co-founder & CEO, Shopmatic
At Shopmatic, we are happy that aspiring entrepreneurs and small businesses will benefit from the many initiatives that the finance minister has announced in today's union budget.We believe that the announcement caters to the rising aspirations of India and is aimed at giving the startup economy a boost!. Setting up an Investment clearance cell to offer end-to-end facilitation and support to start-ups, will give a strong lift to the country's aspiring entrepreneurs. Start-ups have more than one reason to celebrate, as entrepreneurial ventures with turnover up to 100Cr, as opposed to the previous threshold of 25Cr, can now avail 100% profit deduction in 3 out of 10 years instead of the previous limit of 7 years. This will surely allow entrepreneurs to take more risks and innovate while pursuing their aspirations. Deferring ESOP taxation in the hands of employees is another welcomed move, offering them a window of 5 years or whenever they exit the organisation, whichever is earlier. This will continue to help more startups hire the best candidates and retain them, for longer periods of time. Rural entrepreneurs are also being offered more opportunities to grow and up-skill, with the government allocated INR 3,000Cr for skill development. Stressing on digital connectivity, the FM has proposed to bring digital connectivity to 100,000 Gram Panchayats and allocating INR 6,000Cr for the optical fibre program under BharatNet. The same will strengthen the digital infrastructure that rural entrepreneurs can leverage to promote and sell their products and services. These are pivotal steps that the economy needs to boost consumerism and cater to India's growing economy.
 
Jasmeet Thind, Co-founder, Coutloot
With technologies like AI, IoT and Data Analytics transforming the world, and cutting across streams, the Union Budget 2020 has introduced some ample changes that will certainly benefit the start-up community. The finance minister announcing that entrepreneurs from rural areas will be offered additional opportunities to learn and develop their skill sets is definitely a moment to rejoice. Stressing on digital connectivity throughout the country the INR 6000 crore allocated for the same under the BharatNet program, we are happy that aspiring entrepreneurs and small businesses from suburban and rural areas will be able to scale their business outside of their towns. We will continue to offer our support to enable them to achieve their goal and own successful businesses
 
Manish Khera, Founder & CEO, HAPPY
"A number of positive measures have been taken by the government including the increase in FPI limit in corporate bonds, concession in NBFC eligibility in SARFAESI Act, and ease of liquidity constraints for NBFCs and HFCs. The biggest announcement this year is undoubtedly going to be the change in Income Tax slabs since it will boost consumption in the horizontal market. There will also be changes in the Contracts and Company Act to ensure a conducive business environment. Apart from these, the ease of doing business for startups by including seed fund for early-stage startups and the establishment of investment clearance and advisory cell for entrepreneurs will go a long way. We welcome this year's budget and let's patiently wait to see how everything pans out."
 
Mr. Sunil Patwari, CEO, Rashmi Rare Earth Limited
"We laud the budget presented by Ms. Sitharaman today. She stated that the Government could announce a Rs. 36,000 crore fund to provide production linked incentives (PLI) to smartphones makers. Building a complete ecosystem to spur local manufacturing is the key for its success. This scheme will support the manufacturers to offer quality products at competitive prices, generating ample employment opportunities and boosting the domestic economy. Our request to the Government to give preferential treatment to Indian companies having 100% local equity over their Chinese counterparts. Faster and hassle free implementation of Incentive Schemes is the call of the hour."
 
Mr. Harsh Jain, Co-founder and COO, Groww
"Making policy for data center parks for digital resources like fintech, AI, aggregator platforms along with the connection of 1 lakh villages via optical fiber internet is great news for digital India. This will definitely increase digital penetration into India that was unthinkable before."
 
Sanjay Goyal, Business Head, TimesJobs and TechGig
"I would term it as a 'forward-thinking' Budget. The announcement of Rs 6,000 Crore to boost internet connectivity is certainly a piece of big news for the internet and e-commerce industries. The announcement of a single investment clearance window for entrepreneurial projects will boost the 'Startup India' mission. There was also an announcement about opening internship opportunities with urban local bodies and Rs 1 lakh Crore push for education, which will directly impact jobs and skill development. And, for those seeking jobs with the government sector, there's a plan for setting up a national recruitment agency for the hiring of non-gazetted jobs. These and other announcements of investments in the Healthcare and other sectors will give impetus to the recruitment scenario".
 
Dr. Vivek G. Mendonsa (Director-Sales - LYNX_Lawrence &Mayo)
"The budget 2020 is a holistic and integrated budget, focused on promoting the 'ease of living' for a common man and 'ease of doing business' for SMEs, MSME's and corporate. With a clear thrust on projects that work keeping sustainability and optimum use of resources in mind, the budget outlines plans to strengthen infrastructure relevant for renewable energy, transport, IT and agriculture, and allied industries. Further, a plan to offer employment opportunities to India's young engineers, management graduates, and economists, in construction, operation & maintenance of infrastructure through the 'Project Preparation Facility', and the mandate for urban local bodies will provide internships to engineers for one year at district and state level, the budget displays a long term vision to make India a youth-led economy. The proposal of 100% tax concession to sovereign wealth funds on investment in infra projects, budgetary allocations of INR 22,000 Cr earmarked for the power and renewable energy sector and allocations of INR 4,400 Cr for clean air in cities with a population of over one million, expansion of the National gas grid from 16,200 km to 27,000 km, concessional tax rate of 15% to power generation companies, and government initiatives to forge global partnerships for environment, are impactful steps in the direction of building a robust infrastructure for sustainable energy resources. Focus on building a strong IT infrastructure through the creation of 'Data Parks' for an effective and integrated digital network, is another visionary step to making India a robust digital economy. Focusing on transport, with the development of highways, waterways, and air-routes, especially the Krishi Udaan and Krishi Rail for agro produce transportation using cold storage, and enhanced connectivity of tribal and remote Northeastern states, are some of the impactful initiatives announced. All of these initiatives showcase the government's commitment to driving an integrated, sustainable, and humane approach to economic growth, that will have long term impact on the wealth and well-being of generations to come. (Please mention 100 new Airports are coming)"
 
Mr. Kuldeep Tomar, Director, Advisorymandi.com
"Despite the disinvestments target of 3.23 lakhs crore from FM Nirmala Sitharaman and scissor over the earlier tax regime in order to counter the PSU underperformance and cushion the slowdown in the Indian economy respectively, the Modi-led govt has failed to cheer the market participants as no deviation in the Long Term Capital Gain tax and sustenance of Securities Transaction Tax has made a bloodbath in the market. No doubt, the index was banking upon the expectation of a shift in LTCG tax to two or three years in order to boost the investment cycle but failure to make any changes and continuation of STT that would restrict retail participants to enter rigorously in the markets is going to keep the index on tenterhooks. Moreover, no deduction over GST rates on automobile sectors has added fuel to the fire."
 
Mr. Taranpreet Singh, TASS Advisors Partner.
"Tax proposals in line with government agenda of ease of compliance, reduce litigation and simplification. There is something for everyone. While personal income tax regime has been redone with a new optional scheme wherein no income tax payable for income up to Rs. 5 lakhs income, a significant reduction in tax slabs is likely to be appreciated by the public at large. Removal of DDT is a welcome step by the corporate world but it may have a mixed reaction by investors and shareholders who have been used to enjoying tax-free dividends as going forward such dividends will be taxable in their hands. Introduction of Vivaad- se- Vishwaas Scheme to reduce to direct tax litigations and shall reduce the burden on the appellate forums. Robust amendments in compliance regime with the introduction of instant PAN allotment based on Adhar and faceless appeal proceedings are likely to reduce tax harassment and fears. Overall a balanced budget with a key focus in making India a tax-friendly and growth-focused nation"
 
Mr. Loknedra Ranawat, Founder & CEO, WoodenStreet
With the focus on economic development, entrepreneurship, which has been the spirit of India is being given high value. A better environment for growth will be provided by opening portals to assist new entrepreneurs. Investment clearance, cells will also be set up to help with the funding process. Electronic manufacturing is in focus and different measures will be taken to enhance the local production. The Government will also launch e-marketplaces which will open various opportunities for SMEs. A total of Rs. 27,300 crore is also allocated to industry and commerce which will also give a boost to the start-up story in India.
 
Mr. Harsh Jain, Co-founder and COO, Groww
"Startup ESOPs taxation on vesting will be deferred for five years or till exit - whichever is earlier! This is great news as the current system collects taxes too early. This will encourage more startups to get incorporated and create jobs. It will make it easier for startups to incentivize good talent and attract more skilled talent towards working in startups"
 
Mr. Harsh Jain, Co-founder and COO, Groww
"Dividend tax removal and tax to be paid by the investor based on his/her tax slab is good news as it simplifies taxation on dividend earned by investors and reduces hassles." "Raising deposit cover from Rs 1 lakh to 5 lakh is great news and will definitely give investors more peace of mind."
 
Mr. Loknedra Ranawat, Founder & CEO, WoodenStreet
The allocation of Rs. 27,300 crore will lead to a setup of a better environment for industry and commerce. As the electronic sector is in focus of Government, new startups based on the manufacturing of electronic equipment and semiconductors will also see a rise. New investment in this sector and change in export norms will also give a boost to this industry. The subordinated debt for MSME's and overall debt restructuring will also benefit the entrepreneurs and small businesses greatly.
 
Mr. Archit Gupta, Founder, and CEO, ClearTax
"The complex tax regime for taxpayers with the slabs rejig. With the optional new regime, taxpayers will have to evaluate what works better. Those committed to long term saving and investing via 80C may be discouraged and this may likely demotivate taxpayers from tax-saving linked investing. DDT removal is good as it increases dividends received in the hands of the taxpayer - however, such receipts to now are taxable in their hands. Those above 20% tax slab - will now face more tax on their dividend income. We welcome deferment of perquisite taxation - now taxation at the time of 'exercise' deferred to 5 years or till they leave the company or till they sell their shares - whichever is earlier. This will be a key plank for hiring quality resources. Raising the turnover threshold for audit for businesses to Rs 5Cr is a welcome relief. Hopefully, tax filing for such businesses will also be simplified. However, such businesses will have to be careful with keeping cash transactions under 5% and will need a technology-based mechanism to track that."
 
Upasna Bhardwaj, Economist, Kotak Mahindra Bank
"The budget seems largely on lines with expectations with the fiscal deficit in FY20 pegged at 3.8% and 3.5% for FY21. The net market borrowing for both this year and next year is marginally lower than expectations, which could provide brief respite to the bond markets. Further, aiding sentiments could be a more realistic nominal GDP growth assumption of 10% and the related tax and expenditure growth. The income tax tweaks should help in boosting consumer confidence and demand raising hopes of a revival in growth. Meanwhile, the focus on infrastructure, agricultural warehousing, education and manufacturing sector should help ease structural bottlenecks over the next few years."
 
 
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