Post Budget Reactions – India Inc Sees Growth Revival and Job Creation with Budget 2021

Since yesterday, more than 100 business leaders have come forward with their reactions on the budget. Directors, CEOs, Presidents, COO, CFO, Vice Presidents to name a few from reputed business houses commented. We had stalwarts such as Motilal Oswal, Vishal Suri from SOTC, Prakash Chhabria from Finolex Industries, Mukundan from Tata Chemicals and it goes on.

Now, we have stalwarts from more accomplished companies in India. Sectors such as IT/Tech, Finance/Taxation, Women Entrepreneur, Startup, Automotive, Retail/Sports and Healthcare share their budget reactions.

Karthikeyan Natarajan, President and Chief Operating Officer, Cyient

Focus on setting up of Fintech Hub at Gift City, enhancing digital payments and use of AI in governance – all provide a strong platform for Digital India. Allocation of Rs 50,000 crore towards National Research Foundation will work towards boosting India’s Innovation Quotient on the global map and is a welcome move.

Allocation of funds as incentives for promoting digital payments is also a step in the right direction and a significant step in ease of doing business. Lastly, increase in allocation for highways and railways will lead to employment generation and boost the economic growth of the nation.

Suraj Malik, Partner, BDO India (M&A)

Budget 2021 constructively impact the lives of common man with targeted proposals for extending social security benefits to gig economy, tax concessions on affordable housing and rental housing, simplified compliance regime for start-ups and exemption to senior citizens from tax filings. Stability in tax regime, simplification in compliance procedures along with consolidation of laws will provide a strong foundation to the six pillars for achieving economic growth.

Neetish Sarda, Founder, Smartworks

Hon’ble FM’s vision for Atmanirbhar Bharat with a budget focused on six essential pillars is commendable. The government has set an ambitious target to build infrastructure in the country and increase focus on digitisation and public investments. The proposal to exempt dividend payments on REITs and InVITs from TDS will surely boost investor sentiment thus augmenting funds for infra and real estate sectors. Initiatives to boost the Indian startup ecosystem by incentivising the setting up of One Person Companies (OPCs), announcing tax holidays and an extension in capital gains exemption are welcome steps.

Prashant Solomon, MD, Chintels India and Hon. Treasurer- CREDAI NCR

Finance Minister has presented a forward looking Budget that is aimed at generating investments and reigniting the growth cycle. The government’s big bet on infrastructure is bound to pay off in the long term and bring in growth for real estate and allied sectors.  Giving flexibility to REITs to raise more debt capital will attract more investment in the real estate sector and will lead to faster closure of transactions. The decision to extend tax holiday for affordable housing projects is a step in the right direction and will help realise Prime Minister’s dream of ‘Housing For All by 2022’.

Vipul B Gajingwar, Regional Director, ASSOCHAM West

It’s a very practical, rational & progressive Budget. Finance Minister has meet almost all the expectations in Budget 2021. Given the current times, the budget is focused on India’s growth and is tailored to accelerate the growth rate making it Aatmanirbhar Bharat in real.

Jahnabi Phookan, National President, FICCI FLO

The budget proposed by Finance Minister will help to boost the revival of our nation’s economy following the Covid induced Economic Fallout. With its targeted proposals for extending benefits to the women in form of policies such as Mega Investments Textiles Park, Incentivising one-person companies, Implementation of the four labour codes, dedicating 3000 crore to NATS, proposal of funds for the welfare of tea workers especially the women & children in Assam & West Bengal, It will provide a strong foundation for the female strata to rise and support in building an Atmanirbhar Bharat.

Shammi Pant, Co-Founder, myJen.ai

This budget reinforces the focus on the fundamentals with intent to revive the economy from the unprecedented pandemic setback of last year.  In a major way it focuses on Health, Infrastructure and further rationalization of our financial regulations, which is going to give the economy an impetus in revival and put the focus back on fundamentals. The startup community welcomes the attention given in Budget speech of the Finance Ministry and we thank for announcements regarding Tax Holidays and Capital Gain Exemptions.

Romira Roy, Founder and Chairperson – SEED

The six-pack budget proposed by the Finance Minister encompasses the true spirit of sustainable and equal growth. The push for the health sector and the skilling space with tie-ups with UAE and Japan, to begin with, will go a long way. The focus on revamping the health infrastructure, the push for aggressive disinvestment with LIC’s IPOs, Tax holiday for start-up, expansion & strengthening of nameless faceless IT along with the revision of years are something to be applauded. Although tax slab revisions & further involvement of the private sector in the COVID vaccination distribution is something that could have also been looked at. Overall it was a well-balanced budget given the fiscal deficit constraints.

Rishi Ahuja, Founder, Klip VR Immersive Tech

It’s heartening to see the focus on Education in Finance Minister’s budget speech where she rightly said youth of the country have abundant skills and it needs proper channelization. This year will be historic and motivational for our youth with events like 75th Year of Independence and Chandrayaan Mission 3. The education budget and steps announced for effective implementation of National Education Policy, increased focus on the role of technology will provide further opportunities for growth and sustained development of the sector and students.

Sharad Malhotra, President – Automotive Refinishes and Wood Coatings, Nippon Paint India

With an expansionary Budget that focuses on growth, the Finance Minister has delivered on major counts. The Budget has announced a massive infrastructure boost with huge outlay for Railways and privatizing airports. Along with this, measures that will increase consumer spending and make India more self-reliant are a step in the right direct. Fitness testing for both PVs and CVs is a positive move that will not only generate employment opportunities but also ensure a cleaner environment. Our sector has got a favorable boost in form of FM’s voluntary vehicle scrappage policy announcement.

Arun Pandey, Chairman & MD, Rhiti Group

The Union Budget 2021-2022 laid major impetus on unlocking our nation’s true potential by introducing schemes such as providing financial incentives to promote digital transactions, providing incentives to one-person companies, allocating resources for the revival of the MSME sector, setting up of Central University in Leh, allotment of 3000 cr to NATS, etc. These initiatives will help to foster the Start-up Industry, MSME sector, education sector & help in the overall development of the nation. Through this budget, the Finance Minister was able to address each & every aspect of the economy.

Farhan Pettiwala, Executive Director & Head Development, India & South Asia, Akhand Jyoti Eye Hospital (AJEH)

We expected a bigger change and disruptive budget, indeed the budget has Kickstarted by increasing investment in Infra, healthcare, ARC (assett management company), LIC IPO disinvestment, no change in tax structure, INR 64,180 crore to new health scheme is a big plus, with 35,000cr for covid vaccine.

The budget focused on the education aspect as well. Hence, a large number of acadamecians across the country have come up with their thoughts too. And that comes next.

Image by Gerd Altmann from Pixabay