Govt seems to be firm on pursuing further reforms: Magma

Sanjay Chamria, vice chairman & MD, Magma Fincorp on Budget 2011:

The Government has delivered a very positive and inclusive budget. The Government seems to be firm on pursuing further reforms and the intention is articulated by the Finance Minister in his budget speech seeking to introduce bills on banking, insurance; pensions and companies in this fiscal which will restore confidence of the foreign investors.

In the budget, the FM has ensured renewed thrust on the rural infrastructure and agri economy with higher allocation of Rs 58,000 cr for Bharat Nirman and proposing to invest in a four-point programme to improve agri productivity and storage. This will boost the economy and result in more entrepreneurs in the rural India, and will help increase opportunities for Asset Finance Companies (AFCs) to partake in this credit requirement.

Lower fiscal deficit and lower than expected borrowings of government will defintely help in better liquidity and interest scenario for the private sector including AFCs. The FM has taken measures on rural housing by setting up of a Rs. 3000 cr fund, increased limit to Rs. 15 lakhs from Rs. 10 lakhs for interest subsidy and increased limits of priority home loans to Rs. 25 lakhs from Rs. 20 lakhs. All these will lead to overall growth of affordable housing and related core sectors such as cement, steel, transportation and financial services for these sectors.