Union Budget 2020 India Reactions Highlights: Here’s how politicians and analysts reacted to the Budget
Union Budget 2020 India Reactions Highlights: As Finance Minister Nirmala Sitharaman began presenting the Union Budget 2020 Saturday, reactions from several quarters started pouring in. Congress leader Rahul Gandhi took a jab at Nirmala Sitharaman over the duration of the budget speech and said it was probably “the longest but it was hollow”. Meanwhile, CPI(M) chief Sitaram Yechury describing the budget as ‘just platitudes and slogans’, shared a cartoon of the Jamia shooting on Twitter. Meanwhile, Defence Minister Rajnath Singh hailed Budget and said, strategic allocations have been made in this Budget, welcoming policy intervention in new tech economy.
Facing the challenge of reversing India’s sharp economic slowdown, Finance Minister Nirmala Sitharaman presented her second Union Budget on Saturday. As it happened, we bring to you all the reactions surrounding the budget from politicians to experts to common masses. On Friday, the Economic Survey pegged economic growth at 6-6.5% in the fiscal year, starting April 1.
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India Inc.’s reactions last year to Sitharaman’s maiden budget was a mixed bag as they said no incremental changes were made since Interim budget. However, the Finance Minister needs to ensure relief to ailing sectors this fiscal year, analysts believe.
Ola Mobility Institute: The budget’s focus on the development of transportation infrastructure, specifically on urban transportation through allocation of funds for metro-rail projects will help achieve Ease of Living through Ease of Moving. The transportation infrastructure development should also focus on accessibility to all including senior citizens and persons with disabilities. Sub-urban rail will boost multi-modal connectivity and open up new economic opportunities for areas in and around cities like Bengaluru.
The clean-air fund of Rs 4,400 crores to be provided in the form of incentives to be notified by MoEFCC should consider measures to link the incentives to the electrification of vehicles and associated infrastructure such as battery-swapping and charging.
The government’s recognition of the role of New Economy in the form of aggregator platforms and sharing economy is a significant step towards encouraging innovation and entrepreneurship. The universal pension coverage with auto-enrolment realises the long-felt need of mobile social security for workers will boost the platform economy.
Mitesh Shah, Head - Finance, BookMyShow said “At the onset, we would like to laud the Government for a growth-driven budget. We welcome the progressive policies aimed at encouraging rural demand, changes in personal taxes to spur consumption, impetus to infrastructure development, measures aimed at bolstering growth and reversing slowdown. Additionally, taxation related to ESOPs as a perquisite and removal of DDT are significant moves. However, it would have been beneficial to have the benefits of taxation relief on ESOPs expanded to companies and industries at various stage of growth and not be limited to startups alone.
Compliance on e-commerce has been increased by mandating them to deduct a TDS of 1% on all goods and services sold on e-commerce platforms. This would be in addition to TCS under GST and this amendment might further increase the cost of compliance for e-commerce companies. The government’s vision to build data centre parks, allocation towards quantum computing and its focus on using artificial intelligence in statistical and other government departments will take India’s growth story to the next level and help further the 'Digital India dream."
TRS party leader K T Rama Rao slammed the Union Budget and said reducing the state's share in central taxes will impact the implementation of various developmental projects. "Utterly disappointed with the #UnionBudget2020 While economic survey showcases Telangana as a performer & a progressive state, Reducing Telangana’s share in Central taxes is bound to impact the implementation of various development & welfare initiatives of the state government. The fact that the States' share in Central taxes has gone down by an unprecedented 18.9% in FY 2019-20 proves how poorly the Union Govt is managing the economic affairs of the country. This is going to severely impact Telangana state’s planning. Though NITI Ayog had recommended Union government to extend financial assistance of Rs 24,000 Crores to Telangana’s flagship initiatives #MissionKakatiya and #MissionBhagiratha, unfortunately Union Govt did not allocate even a single rupee in #UnionBudget2020," he tweeted.
Karnataka Chief Minister B S Yediyurappa Saturday described the Union budget presented by Finance Minister Nirmala Sitharaman as pro-people, pro-farmer and pro-poor. “For the first time in the history of the country, priority has been given to farmers, poor and rural areas. This is a boon to the farmers. The programmes announced for the farming sector compliment the Prime Minister’s vision to double the income of farmers,” Yediyurappa said in a statement. Read more here
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.
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.
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.
Tripura Chief Minister Biplab Deb congratulated Finance Minister Nimala Sitharaman on the Union Budget and said the budget proposal has stress on agriculture, rural development, health and education sectors. “I congratulate @FinMinIndia Smt. @nsitharaman ji for presenting the pro-people #Budget2020 which will fulfill @PMOIndia Shri @narendramodi ji’s vision of #NewIndia. The budget laid special focus on the Agricultural, rural dev, Health and Education sectors for the overall development”, the Chief Minister wrote on his official Twitter handle.
Deputy Chief Minister Jishnu Devvarma lauded the budget proposal later this evening saying it is ‘pro-poor, pro-village, pro-development. He said the agricultural sector and rural people would benefit from the budget.
However, veteran Congress leader Tapas Dey criticized the Budget and said it was rudderless about providing employment, development of tribals. "This budget reflects the BJP-led central government's policy of financial mismanagement and indiscipline", Dey said.
"From five years, Modiji is presenting budget and in five years, they have taken economy at a level where GDP is decreasing and unemployment is increasing. Every year they praise themselves through the media.There was need to make incentive better and increase consumption," says Madhya Pradesh Chief Minister Kamal Nath.
Abheek Barua, Chief Economist, HDFC Bank: The Budget provides credible numbers in terms of the fiscal math, recognising the revenue shortfall faced this year. It uses up the 50bps point leeway that the FRBM act provides for both this and the next year which is a welcome step.
Mr. Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani: While the budget overall had measures directed towards boosting the income of people and enhance their purchasing power through tax relief, it has some specific measures for the real estate sector too. The budget announced the initiative to develop five new smart cities in collaboration with States in PPP mode. This is a welcome move and will enhance the real estate prospects. It strengthened the commitment to affordable housing, which is the government’s focal point for real estate. The previous tax exemptions for both homebuyers and developers have been extended for another one year. Personal tax relief across various income slabs will invariably increase disposable income at the hands of the middle class, and boost their consumption capabilities. Alternative segments have got a boost. While not giving direct benefits to residential real estate as a whole, the budget has laid more focus on alternative segments within real estate – such as warehousing, data centres, schools, hospitals and hospitality. Plans to build Data Centre Parks across the country will boost demand for more real estate spaces. Simultaneously, plans to develop 5 archaeological sites will open new avenues for employment and also indirectly push real estate development. Infrastructure development has been a top priority for economic growth and will have a major multiplier effect on not just the overall economy but on the real estate market as well.
Harshil Mathur, CEO and Co-founder, Razorpay: The budget does meet some of the expectations from the FinTech industry and startups. The introduction of some sort of a tax relief on ESOPs was one of the biggest asks from the startup industry - this deferment of tax payment by five years, to me, is one of the biggest welcome moves by the government in this budget. This is a good start and I hope we see more focus on this going forward. Secondly, the reduction on corporate tax to 22% is an encouraging step. This is the lowest in the world and will be encouraging for Indian businesses. Lastly, the changed income tax slabs and rates is not only a huge income tax relief for individuals but will also lead to an increase in disposable income, thereby giving a boost to consumer spending.
Prakash Mallya, VP, and MD – Sales and Marketing Group, Intel India: The Union Budget highlights the role technology-enabled innovation can play in leapfrogging the nation. From integration in priority sectors like agriculture and healthcare to a continued focus on smart cities, the first budget of the new decade clearly outlines the significance of a digital-first India in realizing the country’s potential. I am especially encouraged by the efforts to use artificial intelligence (AI) and machine learning (ML) to improve disease detection and pre-emption as part of the PM Jan Arogya Yojana. Such applications of emerging technologies combined with the focus on increasing the penetration of fibre connectivity in the nation have the potential to fundamentally impact the lives of millions in the coming years.
Mahesh Balasubramanian, MD & CEO, Kotak Mahindra General Insurance Co. Ltd.: This is a “ Laghe Raho” Budget as there were no quick fixes or grandiose plans but lots and lots of initiatives which will all help keep the economy on course for the 10% realistic Nominal GDP growth planned. Big spend push through National Infra Pipeline, Transport sector and 16 initiatives on Farm growth should help rural economy and growth. Fiscal deficit at 3.5% for Fy 21 is a relief as we stay the course and yet spend extra within limits. Disinvestments target of 2.1 L cr will have to be met through LIC, IDBI etc. Overall, time to switch of TV Channels and go back to the hard grind of execution to get the economy on track. So, as we chase the 5 tn GDP target, its ‘Lage Raho’ for now.
Sanjay Jalona CEO&MD, LTI (L&T Infotech): Acknowledging the influence of technology in shaping new age economy is a distinct aspect of the Union budget. Focus on artificial intelligence and targets set for quantum computing is a step in the right direction to strengthen India’s position as a frontrunner in exponential technologies. From IT services perspective, it will be interesting to see if setting up more export hubs is encouraged by incentives for the industry that has been at the forefront of exports for the country.
Union Budget 2020: "Investment is the biggest driver for employment. Steps have been taken to strengthen the bond market and finance for infrastructure. The removal of DDT will hand companies Rs 25,000 crore that will be further invested by them," says PM Modi
"National Logistic Policy will benefit trade, business, and employment. The target to build 100 airports in India will embolden the will of a general Indian. This infrastructure is very important for Indian tourism": PM Modi
"India will now move to become a key member of the global value chain. The skill development of the youth has also been stressed upon. Skill sets needed for the development of a modern and New India have been focussed," says PM Modi.
'I congratulate Finance Minister Nirmala Sitharaman and her team for presenting the first Budget of the decade that has vision as well as action. Several new reforms have been announced in the Budget that will give a push to the economy,' says Prime Minister Narendra Modi.
Atul Rai, Co-Founder & CEO of Staqu: "We appreciate the government’s emphasis on promoting cutting-edge technologies in India. In her Union Budget 2020 announcement, the FM observed that technologies like machine learning, robotics, AI, along with number of productive age group (15-65 years) are cross-cutting streams in India, which is a special attribute for our country".
Mr. Nikhil Kamath, Co-founder, Zerodha & True Beacon: "Nothing substantial seems to have changed, for the government to expect a 10 percent nominal GDP growth rate continues to sound like hubris, the situation on the ground is a lot worse, the need of the hour might be to recognize the issues at hand and transparently deal with them. Personal income taxes being cut do not make a substantial difference to consumption, the rich tax which has essentially with surcharges brought the effective tax rates to 42 percent for the highest bracket continues to be a big deterrent to consumption. This is not yielding substantial revenue gains for the government, and it might have been prudent to do away with this.
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. 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. Pathik Shah, CEO of DB Digital: "Promoting and building data center parks across India and improving connectivity through BharatNet seems like a great move forward - it would be great to leverage both to enable seamless interchange of data across local government bodies and also enabling access to it to private companies to build innovative applications leveraging that data - just like the data.gov initiative by the US government; and that could also help drive data localization forward - depending on the specifics. The way they should be structured should be very similar to UPI - making technology entrepreneurs from across India lead the strategy, architecture and execution of the network and making it open so anyone can plug in - from existing tech giants to startups."
Manit Jain, Chairman, FICCI ARISE: "In order to reach the target of average spend of USD 173 billion a year to achieve the SDG 4 by 2030, it would be an unrealistic expectation to see that coming solely from government and pure philanthropic initiatives. In this context, we welcome the Government’s steps towards encouraging sourcing External Commercial Borrowings and FDI to boost quality education. We hope this would pave the way for opening up and formalising the sector and ensuring long term responsible and patient capital, giving the much needed confidence to potential investors to invest in the sector and expect legitimate RoI as spoken about several times in the past".
Anuradha Singh, CEO and founder at Indi Collage: "Nirmala Sitharaman in her Budget 2020-2021 acknowledged the startup ecosystem as the "strength of India," and proposed a bunch of measures to ensure ease of doing business for Indian startups. Proposal of National Technical Textile Mission with an outlay of Rs 1,480 crore over four years to cut down imports has been a great move to boost the the textile industry. However, with regards to tax exemptions we were expecting some major moves to encourage women entrepreneurship in India."
'The government is in complete denial that the economy faces a grave macro challenge and the growth rate hs declined in six successive quarters. But nothing in the Budget leads us to believe that growth will revive. The claim of 6 to 6.5 per cent growth next year is astonishing and even irresponsible,' says former finance minister P Chidambaram
Mr. Dhiraj Relli, MD & CEO, HDFC Securities: "The FM has done well in abiding by the fiscal prudence principles for FY21 and the targets set by her look achievable. But it will be crucial for her to stick to it for FY21, else the international rating agencies may have adverse views. The markets have reacted negatively to the Budget, mainly due to some disappointments on account of non-abolition of LTCG, confusion about the impact of DDT removal and taxing dividends in the hands of recipients. Also the alternative provided to individuals for lower rate of tax, provided they do not claim exemptions/deductions, did not seem too attractive. The alternative tax system discourages investments which market participants do not seem to be comfortable with. The overhang of coronavirus outbreak on our markets also got magnified in the later half of the session. Foreign investors will look for signs of revival of growth before they commit funds."
"The Indian economy is demand-constrained and investment-starved. The FM has not acknowledged these two challenges, and that is a pity. Consequently, she has proposed no measures or solutions to those two challenges. If the twin challenges remain, the economy will not turn around and there will be no relief to the millions of poor and the middle class," says Congress leader P Chidambaram.
Union Minister Piyush Goyal hailed the Budget and said it is a welcoming step towards 5 trillion dollar economy. "It is a balanced Budget which prepares India for the decade ahead of us and prepares it to be a 5 trillion dollar economy. It also covers a vast canvas both on the social side, on economic development and ensures that we continue to remain an economic powerhouse," Goyal told news agency ANI.
Congress leader P Chidambaram on Saturday slammed the Budget and said that the government had given up on reviving the economy. 'I am at a loss to understand what was the message intended to be conveyed by Budget 2020-21. I am also not able to recall any memorable idea or statement in the speech. The government has given up on reviving the economy or accelerating the growth rate or promoting private investment or increasing efficiency or creating jobs or winning a greater share of world trade,' he said. "You did not ask for such a Budget and you did not deserve such a Budget for voting the BJP to power. But you have to live with it until the government is forced to revisit it as it did in 2019," Chidambaram added.
Mr. Vikas Garg, Deputy CFO, Paytm: 'We see this budget as a good step in direction to become a $5 trillion dollars economy. As a technology player embedded in India’s technology ecosystem, we welcome the government’s vision to build Data Centre Parks in the country. The government’s focus on enhanced digital connectivity, and focus on emerging technologies such as machine learning and artificial intelligence, along with the allocation towards quantum computing are sure to provide a fillip to India’s economy'
Jaideep Hansraj- MD & CEO Of Kotak Securities: “The Union Budget has tried to balance higher expenditure and still maintain a prudent Fiscal Deficit target of 3.5% for FY21. Removal of Dividend Distribution Tax (DDT) will lead to higher cash flows in the hands of cash-starved India Inc. If individual tax payers opt for the new tax regime then it will result in higher cash in the hands of the individuals. This in turn would lead to increased spending or higher investments, both being good for the country. Nominal GDP growth estimates of 10% for FY21 looks realistic on the back of lower base of FY20. Listing of LIC would help bridge a gap in the Fiscal Deficit for FY21. Market expectations were high on capital market reforms which have not materialised and to that extent there could be some near term disappointment. As earnings recover in the course of next fiscal year, markets will also follow a similar path.”
Sunny Kataria, VP, OLX Auto India: 'The focus on the rural economy will be an integral factor for the auto industry as more income in the rural areas will translate to a spurt in demand for two-wheelers, Agri related auto products like tractors, cars such as entry-level cars and utility vehicles. I was glad that the government addressed the liquidity crisis of the NBFCs which would mean more inflow of capital for the auto segment. The government allocating over 1.7 lakh cr for infrastructural development is a positive step towards ensuring more connectivity between key industrial corridors which should augur well for the automobile industry'
Neeraj Roy, Founder & CEO, Hungama Digital Media: "The government’s plans to promote entrepreneurship through Investment Clearance Cell is an interesting move that should be brought into effect at the earliest in order to boost employment and self-reliance. Easy accessibility along with a fair and transparent implementation will decide its success. Likewise, the proposal to provide early life funding including a seed fund, should help in promoting ideation and creativity. I also look forward to the new education policy and hope that it includes special initiatives to increase digital literacy. Digital education needs to start at the grassroots level in order to ensure that the youth of tomorrow are well-equipped to secure better prospects."
Former Congress president Rahul Gandhi on Saturday slammed the Union Budget and said that it looked like both the Prime Minister and the finance minister had no clue on what to do next. He said the youth needed jobs, but instead got the longest budget speech. "Our youth want jobs. Instead they got the longest budget speech in parliamentary history that said absolutely nothing of consequence. PM & FM both looked like they have absolutely no clue what to do next," he tweeted.
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.
NCP chief Sharad Pawar on Saturday slammed the Union Budget 2020 and said that although the speech was the lengthiest, it lacked farsightedness and direction. He added that the automobile sector was ignored and there was no vision and clarity on doubling the farmers' income.
Shubham Maheshawari, CEO and Founder at Being Chef: Union Finance Minister Nirmala Sitharaman in her Budget 2020-2021 speech addressed the startup ecosystem as the "strength of India," and "job creators", and announced a bunch of measures to ensure ease of doing business for Indian startups. We are glad that this budget has included a seed fund to support early-stage startups and an investment clearance and advisory cell for entrepreneurs. ESOP tax relaxation will help a lot in team building. Allocation of Rs 6,000 crore under the Bharat Net Programme with a focus on digital connectivity across India is also an appreciable move. We hope that these steps will take the Indian startup ecosystem to new heights.
Nipun Marya, Director – Brand Strategy, Vivo India: It is heartening to see that the Government has time and again recognized the significance of electronics manufacturing in today's economy. The Union Budget's significant focus on local production of mobile phones, electronics, and semiconductor packaging is going to propel the Make in India vision further. We are excited about the detailed scheme, which will follow soon.
Prateek Mehta, Chief Business Officer, Scripbox: Applaud the vision of the government and finance minister on these counts. There are some clear positives announced in this budget. The commitment to doubling the rural income by 2022, Increased allocation to infra development, education and skill development, science and technology. These are interventions that will impact the trajectory of the economy for the long term. The increased disinvestment target also iterates the commitment to reforms. The big announcement on LIC IPO will be something that is good for the financial markets. Applaud the vision of the government and finance minister on these counts. The changes in the tax code are also significant. I think it will be difficult for taxpayers to choose the regime. Depending on the stage of life, they might have deductions across sections because of investments, home loans, Sections 80 (C, D, E, G and their sub-sections). It will also be important to understand if a taxpayer can do a flip between regimes or not. Overall, it is a good attempt to put more money in the hands of the taxpayers. But we will need to read the fine print before making the choices and rejoicing on this.DDT being abolished and depositor insurance hike to 5L is a very welcome move. The dividend option of Mutual funds and also the dividend generated via stocks might become unattractive for a lot of investors from a tax perspective. Possibly selling systematically will become more tax efficient.Also, appreciate the moves on the start-up side. ESOPs not being treated as perquisite for a 5 year window is positive. Would have ideally preferred the tax liability to moved only to the point of liquidity as the liquidity cycles are long in start-ups. Moving the limits on Audit requirements is also a positive.As an economy that desperately needs to encourage the growth of capital markets via retail participation, not addressing and removing LTCG in the budget was a disappointment. Increased customs duty on medical equipment might impact the cost of those treatments for Indians - more expenditure on healthcare. Finally, as a marathon-runner, not too happy about the increased customs duty on footwear!!
Union Home Minister Amit Shah on Saturday hailed the Budget and said that it will further push India towards a 5 trillion-dollar economy. "In this budget, the Modi govt has taken effective steps to rationalize the tax system, boost the basic infrastructure, strengthen the banking system, promote investment and ease of doing business, which will further Modi govt’s resolve to make India a 5 trillion-dollar economy," Shah tweeted.
Chief Minister Arvind Kejriwal on Saturday alleged that the Union Budget has meted out step-motherly treatment to Delhi again in the Union Budget. Taking to Twitter, he wrote, "Delhi had high expectations from the budget. But once again the Delhiites were given step-motherly treatement. Delhi does not come in BJP's priority. So why should Delhi vote for BJP? The question is also that when BJP is disappointing Delhi before the elections, will it keep its promises after the elections?"
CPI(M) leader Sitaram Yechury slammed the Union Budget 2020 and said that it failed to address the current economic slowdown in the country. "Budget 2020 has completely failed to address the current economic slowdown. It does not have a roadmap on how the economy can be turned around".
Uttar Pradesh Chief Minister Yogi Adityanath Saturday hailed the Union Budget and said it will further strengthen the economy in many ways. "I congratulate Prime Minister Modi and Finance Minister Nirmala Sitharaman for this development-oriented and pro-farmer budget. This Budget will further strengthen the economy," he told news agency ANI.
Commenting on the Union Budget 2020, Syska director Rajesh Uttamchandani said, “We welcome the steps taken by the Government in the Union Budget towards boosting electronic manufacturing in the country. The electronic industry has huge potential both in terms of manufacturing in India and job creation and will provide a major impetus for growth. This will further enhance the exports of networked products. Another important step taken is the further push provided by the Government for its smart cities mission. It aims to create 100 cities with state-of-the-art infrastructure that includes intelligent lighting, Wi-Fi access points, leading to enhancement of the quality of life of every citizen while building efficient living spaces for future generations. As a company, Syska has been striving towards developing technology-driven, energy-efficient and affordable solutions that positively impact the lives of our customers. With India heading towards mass urbanization, we are aligned towards promoting sustainability, enhancing social development and creating new employment opportunities through rapid digital innovations.”
Rasanna Sarambale, CEO, Sterling & Wilson, Data Centre Business: “The Union Budget 2020, is extremely encouraging and would ensure the necessary boost to the economy. For the first time Data centres have been given due importance. As technology leads the next level of growth for the country, the government’s move to focus on building the necessary back end infrastructure (via construction of new Data centre parks through the country) will ensure the GDP gets the necessary shot in the arm that the country is looking forward too. The impetus planned by the government will ensure long term sustainable growth not only for the sector but also the country. Development of smart cities will need smart data centres, which is a huge opportunity for the sector, this move will also ensure jobs creation and boost to local consumption. This will act as a catalyst in the development of individual states”
Yogesh Bhatia, Founder, and CEO, Detel: "We welcome the initiatives announced by the honorable Finance Minister to boost the start-up ecosystem. The measures made by the government will encourage fresh investment in the sector because the proposed scheme is set to focus on encouraging the manufacturing of mobile phones and electrical products. The government planned to reveal more of a detailed scheme to boost mobile phone, electronics products in the country and to initiate more of phones and electronics to be Made in India soon. We are glad for this opportunity that the government has taken and it encourages us to scale up our defined mission of connecting40croreIndians."
Aakrit Vaish, CEO, Haptik: “As digitization and advanced technologies continue to gain momentum, we welcome the Budget 2020 announcements. Once again, the Finance Minister’s emphasis on machine learning, robotics, AI and IoT will help boost India’s digital journey. A significant proportion from the allocation of INR 3000cr for skill development should focus on these cutting-edge technologies. We are also delighted to witness proposals such as the linking of 100,000 Gram Panchayats through the enhancement of Bharat Net and setting up of data centre parks across the country. As national systems become more sophisticated and our workforce is equipped with the relevant skills, we will truly see the next wave of digital revolution, with greater scope for large-scale indigenous innovation.
Maninder Bharadwaj, Partner, Deloitte India on Data Centric Parks: ‘’The setting up of data centric parks in our own jurisdiction will encourage innovation, the ease of accessibility, creation of jobs and in gaining competitive advantage in the era of globalization. Ever since the launch of Digital India initiative by Hon'ble PM in the year 2015, technology based solutions are being rapidly adapted by businesses. The security aspects during this rapid technology transformation should be considered a vital component to protect the digital universe from cyber threats which eventually could compromise the envisaged growth. Cyber everywhere, grow anywhere.’’
Rajesh Srivastava, Executive Chairman, Rabo Equity Advisors: “We heartily welcome Government’s 16-point action plan to boost agriculture, towards the goal of doubling farmers’ income by 2022. This year’s budget is particularly aimed at promoting smart irrigation, liberalisation of agricultural markets and addresses several concerns of farmers such as agricultural credit, production incentives, cold supply chain, farmers’ insurance, pushing farmers’ income and much more. Some great announcements which we highly appreciate include setting up of the agricultural credit target at Rs 15 lakh, allocation of ?2.83 lakh crore for agriculture, provision of standalone solar pumps to 20 lakh farmers under PM KUSUM scheme. Setting up of Kisan rail through PPP arrangement, for transportation of perishable goods, launch of Krishi UDAN by Ministry of Civil Aviation on international and national routes are equally commendable moves and truly show the feel for woes of farmers.”
Delhi Chief Minister Arvind Kejriwal on Saturday said that it had high expectations from Budget for Delhi, 'but step-motherly treatment meted out to it again.'
Ahead of Delhi going to polls on February 8, Chief Minister Arvind Kejriwal questioned why should people vote for BJP if the national capital does not figure in the party's priorities. "Delhi does not figure in BJP's priorities. Why should people vote for it? Delhi had high expectations from Budget, but step-motherly treatment meted out to it again."
The Trinamool Congress on Saturday slammed the Union Budget over removal of tax exemptions and questioned such a move in a country with no social security. Finance Minister Nirmala Sitharaman introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum, if a taxpayer opts for foregoing exemptions and deductions. "Tax cut ki goli mat do (don't lie about tax cuts). Read the fine print on the so-called IT cuts. Govt removes incentives to 'save' in a nation where there is no social security," TMC's national spokesperson and Rajya Sabha MP Derek O' Brien tweeted.
Rajnath Singh on Budget 2020: "By focusing on reviving growth and rejuvenating demand the Budget is expected to trigger a new virtuous cycle in our economy. Despite the fact that there is lack of fiscal headroom to pursue fiscal expansion, the Budget has done a wonderful job at this juncture. Under the leadership of Prime Minister Narendra Modi, the nation aspires to be a $5-Trillion economy. The Budget today has emphatically laid down this goal to be achieved by 2024-25. I must congratulate the Prime Minister Narendra Modi and the Finance Minister Nirmala Sitharaman for giving the country an excellent Budget by addressing the aspirations of the people and at the same time clearly underling our national goals and priorities."
Commenting on the Budget 2020, Mr. Loknedra Ranawat, Founder & CEO, WoodenStreet says, "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."
Nakul Kumar, Co-Founder and COO, Cashify: The Budget 2020, is a step in the right direction for a more promising time to come for India's startup environment. It is very encouraging to see that the Government has perceived startup as a key job creator as well as an engine of growth which form the backbone of our economy. Tax reforms on ESOPs, and increase the turnover limit for start-ups from Rs 25 crores to 100 crores will boost the start-up system and will lessen the burden from complying with complex red tapism. This year, the budget also focussed towards fuelling growth of early- stage start-ups by introducing initiatives such as setting up portal- based investment clearance cell for offering end-to-end facilitation services at the Central as well as State level in funding and a portal will be set up thereby creating more opportunities for startup owners.
Prasanna Sarambale, CEO, Sterling & Wilson, Data Centre Business: “The Union Budget 2020, is extremely encouraging and would ensure the necessary boost to the economy. For the first time Data centres have been given due importance. As technology leads the next level of growth for the country, the government’s move to focus on building the necessary back end infrastructure (via construction of new Data centre parks through the country) will ensure the GDP gets the necessary shot in the arm that the country is looking forward too. The impetus planned by the government will ensure long term sustainable growth not only for the sector but also the country. Development of smart cities will need smart data centres, which is a huge opportunity for the sector, this move will also ensure jobs creation and boost to local consumption. This will act as a catalyst in the development of individual states”
Siddharth Jain, Co- founder, Vaahika: Personal income tax deduction is a big plus given by the FM, this will help in growth revival. The increasing turnover threshold limit to 100 Cr and tax benefit time period to 10 years is another big push for startups. Also, Deferring tax on ESOP's for startups is a big positive move that will help small startups in retaining talent. The increasing tax audit minimum turnover limit from the current 1 Cr limit to 5 Cr will benefit a large number of small and medium enterprises.
After Finance Minister Nirmala Sitharaman ended her Budget speech abruptly after speaking for over two hours, Rahul Gandhi outside the Parliament told news agency ANI: "Maybe this was the longest Budget speech in history but it had nothing, it was hollow. The main issue facing is unemployment. I didn't see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition, rambling-it is mindset of the government, all talk, but nothing happening."
“Another step targeted to make India an attractive destination of investment - the government has proposed to remove DDT paid by indian companies on dividend and replace it with traditional withholding mechanism. The abolition of this tax can boost market sentiment and make Indian equity more attractive,” says Mr. Amit Bablani, Director, Deloitte India.
"Goal of 5 Trillion dollar Economy by 2024 with a GDP growth of 4.8% is a pipe dream . To achieve that requires uninterrupted double-digit GDP growth. FM's silence on outstanding refunds on GST, Exporters duty refunds and unpaid bills of PSU's amounting to Ten lac crores is conspicuous. Budget is insipid lacking in stimulus for growth. No clear roadmap for job creation," Sharma wrote on Twitter.
As Finance Minister Sitharaman broke her own record by delivering the longest Budget speech in the Parliament, Congress MP Karti Chidambaram in a sarcastic tweet said, "There must be a time limit for budget speeches."
Tripura Chief Minister Biplab Kumar Deb appreciated steps taken by the NDA government in Budget 2020 with its income tax relief announcements.
"I’m less worried about the government’s ‘Fiscal’ Deficit than I am about it’s ‘Talent’ Deficit," Milind Deora wrote on Twitter reacting to Budget 2020.
In a jibe directed at the NDA-led government, Vadgam MLA Jignesh Mevani wrote on Twitter: "Imagine a govt working for the 99% masses, not the less than 1% billionaire classes. We raise this fact everywhere, from @BernieSanders @AOC in the West to crores of people here - poonjipati ki nahi, janta ki sarkar chahiye! (We do not need government for the rich, but for people.")
"The move to increase the deposit insurance from Rs. 1 lakh to Rs. 5 lakh by the RBI subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC) is great news for the common man. It was a necessary step to boost depositor sentiment following some bank runs. The increase in deposit insurance was overdue. This will certainly give a sense of security to depositors, especially senior citizens, who rely on their deposit interest for regular income needs in their golden years," Adhil Shetty, CEO, BankBazaar.com told indianexpress.com.
Claiming that Finance Minister Nirmala Sitharaman's Budget was all "platitudes and slogans", CPI(M) chief Sitaram Yechury shared a cartoon on Twitter and wrote that there was nothing substantial to alleviate peoples’ misery, the growing unemployment, rural wage crash, farmers’ distress suicides and galloping prices.
"Economy is in tatters, all that Nirmalaji can do is cosmetic surgery because all that BJP govt has been talking about is Pakistan Imran Khan Musalmaan," Opposition leader in Parliament, Adhir Ranjan Chowdhury tells ANI.
Congress Rajya Sabha MP Anand Sharma slamming Sitharaman for her Union Budget 2020, claiming that she "failed to explain budgetary maths." He said that the Finance Minister's claim of doubling farmers' income was hollow and contradicted factual reality. Sharma added that entrepreneurship had nosedived under PM's watch.
After reports emerged regarding the Economic Survey having Wikipedia citations, Congress spokesperson Sanjay Jha in a sarcastic tweet directed at Finance Minister Nirmala Sitharaman, said she should not be criticised for Budget 2020 as "it has been prepared by Alexa".
Ahead of the Finance Minister presenting the Union Budget 2020, IMF Managing Director Kristalina Georgieva assured that the Indian economy was not in recession, however it was experiencing some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation. "The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to four percent for last year. We are expecting 5.8 per cent (growth rate) in 2020 and then an upward trajectory to 6.5 percent in 2021," Georgieva told a group of foreign journalists here on Friday. Read full story
Taking a dig at the Government, ahead of Finance Minister Nirmala Sitharaman presenting the Budget, Congress spokesperson Randeep Surjewala wrote on Twitter expressing hope that it would provide relief to the salaried class through tax cuts and increased investment in rural India. Surjewala added that the last budget led to crashing consumption levels, soaring unemployment and falling GDP.
Amid concerns over growing inflation and slowing economy, Finance Minister Nirmala Sitharaman presented the Union Budget 2020 today in the Parliament. We will keep track of the political reactions pouring in from various quarters. Stay tuned to this space for all the latest updates.