New Delhi, Feb 1 (KNN) As the Modi Government presented its last Budget before the General Elections due in May, KNN India spoke to industry associations from across the sectors and across the states over their views on the Budget.

While some of the industry bodies lauded the announcements on Pension Scheme and Income Tax rebate, some expressed disappointment over less focus on access to credit and lack of sops in line with agriculture sector.

Here are the views from industry experts on the Interim Budget 2019:

 

Neel Juriasingani, Co-Founder & CEO, DataCultr

Startups and the industry can take clues out of the various topics touched upon in this budget, to understand the direction and focus. Startups will have an integral role to play towards Vision 2030, it's a great opportunity.

The concept of Digital villages and rural industrialisation opens up great avenues for companies & start-ups like us in the IOT & AI space, as well as for those working on building digital infrastructure of a connected India.

 

Usha Jha, President, Bihar Mahila Udyog Sangh

Overall budget is good as it has covered all the major sectors especially for the women entrepreneurs’; steps like 3% tax benefit on women-owned MSMEs and providing 26 weeks of maternity leave is greatly appreciable.

Besides, reduction in corporate tax from 30% to 25% and 2% interest subvention to MSMEs are also welcome steps.

 

V K Aggarwal, Former President of FISME

This budget is too much politically oriented and the party has utilized the government funds for its vote bank, which is not fair enough. It’s a vote catching budget and not a budget for the country’s economy.

The government focus should be on strengthening of the economy and not on giving sops to people.

 

Animesh Saxena, textile entrepreneur cum Vice President of FISME

From SME point of view, increase in income tax exemption and 2% interest subvention for MSMEs will be a big support for SMEs.

Apart from this, in general the overall budget is people friendly budget and will improve and help the economy. In addition, social funds for unorganized sector workers will also provide a big support.

 

Ravi Sehgal, Chairman, EEPC India:

The Budget for 2019-20 of Prime Minister Narendra Modi's Government gives a clear vision for further improving the Ease of Doing Business by committing increased investment to projects relating to key infrastructure projects which would reduce the cost of transactions for India's exports.

The EEPC India Chairman also lauded the interest subvention for the SMEs, up to two per cent. While the exporters endorse and applaud the GST as the biggest tax reforms in the country, implementation machinery needs to be further pruned so that the exporting sector can fully take advantage of the rationalisation of GST rates.

The infrastructure development must be done year after year, incrementally to make India's exports competitive, so that the export growth which had been slackening can revive sooner than later. 

There is also a big announcement for technology up-gradation with the help of emerging artificial intelligence. The setting up of National Artificial Intelligence would be a big initiative forward.

 

Kumar Rajagopalan, CEO, Retailers Association of India

This is a pro-farmer and pro-middle class budget. It’s also a budget that creates lots more clarity about the Government’s path towards going digital.

More money in the hands of middle class, thanks to the increase in basic exemption limit from Rs 2.5 lakh to Rs5 lakh will be beneficial for retail as it will create a feeling of wellbeing, which is known to boost consumption.

The government’s measures for marginal farmers are in fact a benefit transfer process, which has been seen as an effective tool for development. The Mega Pension Yojana is a welcome move, which shows sensitivity towards older and poorer sections of the society. It’s a pro-infrastructure, pro-Digital India, pro-transparency, pro-poor farmer budget—a feel-good budget that will lead to positive sentiments all around, which will create better retail conditions in the country.

Confederation of All India Traders Association (CAIT)

The Union Budget though seems to be overall good has utterly neglected the trading community and it has highly disappointed 7 crore traders of the Country who were hoping very high from the budget, said CAIT.

The traders’ body said that every other section of the economy has been given relief in the budget except the trading community which is the backbone of the economy. The budget makes us to feel that trading community is like an unwanted community in the Country.

After renaming DIPP as Department for Promotion of Industry and Internal Trade and giving no extension to FDI policy in e commerce, the traders were hopeful that they will get due attention in the budget but with totally left out from the budget, the traders feel aggrieved.

Pankaj Bansal, Treasurer, Federation of Indian Micro and Small & Medium Enterprises (FISME)

The overall budget is good, though it’s an interim budget, implementation depends on whether NDA comes to power again or not, if another party is elected then proposals could be reversed. Many of the announcements like tax exemption and relief to the farmers etc. have been made specially to please the vote bank, which could have been done earlier but alas it was not done.

If Piyush Goyal would have been the Finance Minister all through our story would have been much better for India.

 

R Raju, Ex President, Karnataka Small Scale Industries Association (KASSIA): The Budget has encouraged the farmers, working class and real estate. It does not encourage the micro, small and medium scale industries entirely.

 

Anil Bhardwaj, Secretary General, FISME: As was widely expected, concerns of farmers and workers in unorganized dominated the Union Budget 2019-20. 

Many MSMEs and traders would also welcome announcement that up to the turnover of Rs. 5 crore dealers could file quarterly returns.

MSME sector cannot hide their disappointment, however, as nothing new came their way either in the way of direct taxes or credit ease of access to credit. 

But the big bang has been the massive jump in Income Tax exemption limit to Rs. 5 lac. This will help in revival of demand which was badly affected by demonetization and GST.

 

Manmohan Gaind, Vice President, Manesar Industries Welfare Association (MIWA)

It’s a populist budget and a positive one also as Finance Minister has taken care of every strata in the budget.

2% interest subvention for MSMEs on 1 crore loan is a welcome step. This is a good start, though Finance Minister didn’t allow the capital gains to be used for setting up of industries, which was our demand.

Tax relief given to working class and lower income groups is also a welcome step taken by Ministry.

 

Mustafa Nadeem, CEO, Epic Research

A taxpayers’ budget with political undertone stands to change the scenario for consumption based stocks. Slab change with no Tax for people earning up to 5 lac + 1.5Lac investment, secondly no TDS on income from Post office deposit up to 40000 and on rental income up to 240000 per year are great benefits along with that no tax on second house and increase in the standard deduction limit from 40k to 50K are welcome moves.

So, to sum it all these are those factors that are going to bring in a lot of liquidity to the market in terms of investment. The high impact of this is to be seen on consumption-based stocks. Secondly, when we put that in perspective the slowdown we have seen in real estate in the last few months in an environment of higher interest rates may get its relief with the above announcement coupled with efforts to boost affordable housing.

 

N. K. Thakur, Vice President, Bihar Chamber of Commerce & Industries

The overall budget is an average one, though our demands for the state has not been fulfilled in the budget like special economic package for the state, special budget allocation for sectors like education and industries like Sugar Industry, Power Industry.

However, we welcome certain moves like tax benefits for middle class, 2% interest subvention for MSMEs, PM Kisan program for small farmers, mega pension scheme for unorganized sector workers.