India Inc. has welcomed the announcements made in the Interim Budget on Friday and called it forward-looking, primarily due to the enhancement of income tax rebate, measures to boost the rural economy and the SME sector.
According to the industry, proposals made in the Interim Budget will increase the levels of consumption and in turn provide a fillip to the domestic manufacturing sector.
The Budget presented at the Lok Sabha by Finance Minister Piyush Goyal contained proposals to aid small farmers and the middle class.
Welcoming the budgetary proposals, industry body Confederation of Indian Industry (CII)President Rakesh Bharti Mittal said: "The measures announced in the Budget are likely to provide a significant impetus to consumer spending in the economy, which will boost growth in the near to medium term."
"In an astute balancing act, the Finance Minister has presented a budget, which addresses issues of every segment of society. This a true peoples budget".
However, K.G. Purushothaman, Partner, Advisory, and Telecom Leader at KPMG expressed concerns for the telecom sector.
"With a strong focus on overall fiscal growth of the Indian economy, the telecom sector remained forlorn in the interim budget of 2019."
Purushothaman said that the telecom sector, despite being the foundation ground of digital India, remained wanting for critical support needed by the sector to reinvigorate itself. The ailing telecom sector had huge expectations from the budget in terms of relaxation and reduction of huge taxes and levies paid by them.
Adding that the significant financial distress faced by the sector due to huge debt pile up and the impending infrastructure spend which is estimated to be over Rs 1 trillion, the industry was expecting a financial relief and resolution of some disputed issues like SUC etc.
Hailing the announcement of an assured Income Support Scheme for Small and Marginal farmers, Rajnish Kumar, Chairman, SBI said: "The Union Budget for FY 19-20 is growth-oriented and forward-looking in nature... Interest Subvention announced for farmers pursuing Animal Husbandry and Fishery will provide a fillip to this sector".
"Raising the full tax rebate up to Rs 5 lacs will surely be welcomed by country's emerging middle class. We believe this will further strengthen the purchasing power of the growing middle class thereby providing a welcome fillip to the economy at large."
BK Goenka, president, Assocham explained that India is an agrarian economy and has the largest number of people depending on it. "The PM Kisan Samman Nidhi where Rs 6,000 assured income benefit would be provided to all farmers with land holding of fewer than 2 hectares would encourage small farmers to continue in the field."
"An additional 3 per cent interest subvention to farmers repay loans on time would also encourage timely repayment of bank loans," he added.
Sandip Somany, President, FICCI said: "It is a progressive budget that addresses both the current challenges being faced by the economy as well as presents an outline of the vision the government has for the future of India ten years ahead".
"It's good to see the focus of the interim budget on rural sector, middle class. More money in the hands of the rural and middle class is good for driving consumption in the country And hence good for economic growth," said Kalyan Krishnamurthy, CEO Flipkart Group.
"More and more local MSME manufacturers and sellers can cater to this increased demand from rural, tier 2-3 towns and we at Flipkart marketplace will be happy to support thousands of such sellers to access the consumers cost-effectively and efficiently."