UNION BUDGET 2016 REACTIONS.docx
-
Upload
partho-ganguly -
Category
Documents
-
view
217 -
download
0
Transcript of UNION BUDGET 2016 REACTIONS.docx
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
1/40
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 $th C"ntr!l :!
Commission r"comm"n#!tions !n# ORO:.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
2/40
Compiled By : Partho Ganguly March 1 2016
ROD/: ; :RIORITIE
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
3/40
Compiled By : Partho Ganguly March 1 2016
1. 'Transform India' to have a signicant impact on economy andlives of people.
2. Government to focus on
a)ensuring macro-economic staility and prudent scal
management.
) oosting on domestic demand
c) continuing !ith the pace of economic reforms and policy
initiatives to change the lives of our people for the etter.
". #ocus on enhancing e$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$ploration y providing
calirated mar&eting freedom
d) enactment of a comprehensive la! to deal !ith resolution ofnancial rms
e) provide legal frame!or& for dispute resolution and re-
negotiations in *** proects and pulic utility contracts
f) underta&e important an&ing sector reforms and pulic listing
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
4/40
Compiled By : Partho Ganguly March 1 2016
of general insurance companies underta&e signicant changes in#7I policy.
GRICU7TURE ND R/ER
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
5/40
Compiled By : Partho Ganguly March 1 2016
1. 6llocation for 6griculture and #armers: !elfare is 9s "%;rishi 3inchai oana: to e implemented in
mission mode. 2
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
6/40
Compiled By : Partho Ganguly March 1 2016
crore.1. 9s
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
7/40
Compiled By : Partho Ganguly March 1 2016
OCI7 ECTOR INC7UDING HE7TH CRE
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
8/40
Compiled By : Partho Ganguly March 1 2016
1. 6llocation for social sector including education and health care 9s 1%1%OB CRETION
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
9/40
Compiled By : Partho Ganguly March 1 2016
1. 42 ne! /avodaya (idyalayas !ill e opened2. 3arva 3hi&sha 6hiyan to increasing focus on Kuality of
education
". 9egulatory architecture to e provided to ten pulic and ten
private institutions to emerge as !orld-class Teaching and
9esearch Institutions
. 8igher Aducation #inancing 6gency to e set-up !ith initial
capital ase of 9s 1@@@ rores
. 7igital 7epository for 3chool 0eaving erticates% ollege
7egrees% 6cademic 6!ards and +ar& sheets to e set-up.
RUR7 ECONO/?
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
10/40
Compiled By : Partho Ganguly March 1 2016
1. 6llocation for rural sector - 9s
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
11/40
Compiled By : Partho Ganguly March 1 2016
1. ommitted to providing a stale and predictale ta$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.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
12/40
Compiled By : Partho Ganguly March 1 2016
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.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
13/40
Compiled By : Partho Ganguly March 1 2016
INRTRUCTURE ND IN@ET/ENT
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
14/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
15/40
Compiled By : Partho Ganguly March 1 2016
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/
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
16/40
Compiled By : Partho Ganguly March 1 2016
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. $. Com+r"h"nsi*" C"ntr!l
7"gisl!tion to (" (o)ght to #"!l with th" m"n!c" of illicit
#"+osit t!8ing sch"m"s.
A. Incr"!sing m"m("rs !n# ("nch"s of th" "c)riti"s
++"ll!t" Tri()n!l.
. lloc!tion of 2&3000 cror" tow!r#s r"c!+it!lis!tion of:)(lic "ctor B!n8s.
10. T!rg"t of !mo)nt s!nction"# )n#"r :r!#h!n /!ntri
/)#r! ?o!n! incr"!s"# to Rs 13A03000 cror".
11. G"n"r!l Ins)r!nc" Com+!ni"s own"# ( th"
Go*"rnm"nt to (" list"# in th" stoc8 "4ch!ng"s.
GO@ERNNCE ND EE O DOING BUINE
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
17/40
Compiled By : Partho Ganguly March 1 2016
1. T!s8 orc" h!s (""n constit)t"# for r!tion!lis!tionof h)m!n r"so)rc"s in *!rio)s /inistri"s.
2. Com+r"h"nsi*" r"*i"w !n# r!tion!lis!tion of
)tonomo)s Bo#i"s.
,. Bill for T!rg"t"# D"li*"r of in!nci!l !n# Oth"r
)(si#i"s3 B"n"9ts !n# "r*ic"s ( )sing th" !#h!r
fr!m"wor8 to (" intro#)c"#.
. Intro#)c" DBT on +ilot (!sis for f"rtili"r.
&. )tom!tion f!ciliti"s will (" +ro*i#"# in , l!8h f!ir
+ric" sho+s ( /!rch 201$.
6. m"n#m"nts in Com+!ni"s ct to im+ro*" "n!(ling
"n*ironm"nt for st!rt')+s.
$. :ric" t!(ilis!tion )n# with ! cor+)s of 00
cror" to h"l+ m!int!in st!(l" +ric"s of :)ls"s.
A. E8 Bh!r!t hr"shth! Bh!r!tJ +rogr!mm" will ("
l!)nch"# to lin8 t!t"s !n# Districts in !n !nn)!l
+rogr!mm" th!t conn"cts +"o+l" thro)gh "4ch!ng"s
in !r"!s of l!ng)!g"3 tr!#"3 c)lt)r"3 tr!*"l !n#to)rism.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
18/40
Compiled By : Partho Ganguly March 1 2016
,DD3T A+*0D+A/T 6/7 G9DET8 1. Increase theturnover limit under *resumptive ta$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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
19/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
20/40
Compiled By : Partho Ganguly March 1 2016
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$uities
%edressal mechanism &or in&rastructure pro'ects
Stayed (ith the &iscal consolidation road map
Steps to open up the road transportation sector )a*olish permit ra' over time+
%educed corporate ta &or ne( companies
,igh net (orth dividend earners )earning more than %s - la/h as dividend
income+ to pay additional - percent ta
STT increased
0omestic ta amnesty scheme announced
Where he disappointed
Not a *old *udget
No out o& the *o measures to *oost gro(th
Pu*lic sector investment may not *e enough to /ic/ start the investment cycle
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
21/40
Compiled By : Partho Ganguly March 1 2016
Just %s 123 crore &or PSU *an/ recapitalisation4 seen as inade$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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
22/40
Compiled By : Partho Ganguly March 1 2016
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 (%
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
23/40
Compiled By : Partho Ganguly March 1 2016
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 (%
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
24/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
25/40
Compiled By : Partho Ganguly March 1 2016
: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.
$lthough there is nothing direct for the industry or for that matter
manufacturing sector) there is enough scope to generate demand and "ic"
start the industry. The proposed spending on infrastructure and rural
development definitely has the ingredient to get things going) provided the
e8ecutions are done well. The attempt to reduce ta8 litigation is positive on
the Dease of doing businessD front.;
r aghupati )inghania - Chairman and (anaging irector, .K
+yre & Industries %td/
We welcome this budget as it is positive and growth oriented with a clear view
to uplift the rural economy.
The budget will result in major change in the sectors of agriculture and farmer
welfare, rural development, infrastructure, social sector development and
manufacturing among others. This is expected to result in increased
employment, boost to entrepreneurship, better healthcare system andincreased ease of doing business, all of which are pivotal to growth of the
economy.
I congratulate the finance minister for taking definitive steps to address
concerns of the global slowdown. Spurring rural development, focus on job
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
26/40
Compiled By : Partho Ganguly March 1 2016
creation and increasing consumer demand and exports are steps in the right
direction for the Indian economy. The finance minister has maintained the
fiscal discipline path by setting the fiscal deficit target of .!" in #$%&.
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
27/40
Compiled By : Partho Ganguly March 1 2016
*, 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.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
28/40
Compiled By : Partho Ganguly March 1 2016
- 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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
29/40
Compiled By : Partho Ganguly March 1 2016
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.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
30/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
31/40
Compiled By : Partho Ganguly March 1 2016
strong signal to global investors. The increased infrastructure push) reforms
in the financial sector and steps to boost $+
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
32/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
33/40
Compiled By : Partho Ganguly March 1 2016
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;),
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
34/40
Compiled By : Partho Ganguly March 1 2016
skilling them, we are very happy to be an active contributor to the
government(s Skill India initiative. 7owever, the withdrawal of A2
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
35/40
Compiled By : Partho Ganguly March 1 2016
=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.
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
36/40
Compiled By : Partho Ganguly March 1 2016
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,
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
37/40
Compiled By : Partho Ganguly March 1 2016
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, +
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
38/40
Compiled By : Partho Ganguly March 1 2016
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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
39/40
Compiled By : Partho Ganguly March 1 2016
=;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
-
7/24/2019 UNION BUDGET 2016 REACTIONS.docx
40/40
Compiled By : Partho Ganguly March 1 2016