Budget Reactions from the Industry

Mr. Subhrakant Panda, Vice President, FICCI & Managing Director, IMFA

The budget is very comprehensive and proposals are well thought through which will provides fiscal support for investment & consumption while also providing a 5 year roadmap to come back to prudent norms. Higher outlays for various sectors augurs well, as does the fact that the quality of expenditure is improving with more thrust on capital expenditure. Setting up of a DFI to fund long gestation projects, and an asset reconstruction cum asset Management Company to deal with stressed assets are welcome steps. Limiting reopening of assessments and providing for a faceless ITAT will encourage the honest taxpayer. Similarly, several regulations and laws subsiding into a single securities code is a very positive step. Finally, no major changes in the tax structure is a major commitment to provide stability.

Mr. Randhir Chauhan, Managing Director, Netafim India and Senior Vice President, Netafim Ltd.

“The Union Budget clearly highlights the Government’s continued focus to modernize the Agri sector. We welcome the announcement of additional allocation of Rs. 5,000 cr to the Micro Irrigation Fund (MIF) under NABARD which now totals Rs. 10,000 cr. This is in line with the Government’s vision of ‘per drop more crop’, and will help move closer to the target of micro irrigation coverage across 1 crore ha in five years, across the country. In order to improve the fund utilization, we request policymakers to remove the condition of disbursement (which is only against additional subsidy) and consider to make it available for the mandatory state share as well. The additional fund could keep the momentum up in states like Tamil Nadu, Maharashtra, Gujarat and Karnataka which are already in favour of the scheme, help restart in states like Andhra Pradesh and Telangana and bring newer states like Uttar Pradesh, Bihar, Jharkhand, etc. under its gamut."

Mr. Shyam Sunder Aggarwal, Managing Director, Bikano

"First of all, the government must be congratulated for a comprehensive well-considered budget in what was an extremely taxing economic backdrop thanks to the Covid-19 battle. Now that lives have been saved and we are to feel even safer in the coming month's thanks to the largest Covid vaccination programme in the world which is underway – the government has to think of livelihoods. And in that respect, taking the right policy measures in the budget 2021 for urban infrastructure, transport, textile, fisheries and encouragement of startups, along with disinvestment and Atma nirbhar Bharat programme and production-linked incentive’s (PLI) with a special focus on 13 sectors would generate sufficient and sustainable employment. Only this would lead to stable incomes and higher purchasing power which would, in turn, generate demand for FMCG and food products and services. Furthermore, the allocation of substantive funds for roads, highways and railways will improve the distribution network and efficiencies of food products and services leading to even higher demand and consumption thereby giving a huge fillip to the latter", said Mr. Shyam Sunder Aggarwal, Managing Director, Bikano.