The steel industry today welcomed the Budget proposals and hoped that focus on areas such as ports, roads, affordable housing, physical infrastructure should provide the steel sector necessary impetus to meet its growth targets.
CNBC-TV18‘s Ronojoy Banerjee spoke to Naushad Forbes, President, CII, Vipin Sondhi, MD & CEO, JCB India, Rajiv Memani Chmn - Global EMs Committee EY, Chandrajit Banerjee Director General, CII who gave their views on Union Budget 2017-18. Here‘s what they had to say.
The proposal to hike expenditure under IPDS and DDUGJY schemes together by 25 per cent to Rs 10,635 crore as provided in the budget is likely to pave the way for sustainable energy for all.
Listing his views on the policy announcement, Gulabchand told CNBC-TV18 that the government government has understood that there is a lack of demand and that it must step in to create demand.
The US Federal Reserve's intention to increase policy rates in 2017 may lead to lower capital inflows and higher outflows from the emerging economies, Finance Minister Arun Jaitley said.
The Ministry of Corporate Affairs (MCA) will get more funds in the next financial year, as the yearly allocation has been increased to Rs 448.04 crore in the Union Budget.
Lots of stocks from auto, FMCG, housing, banks to infra sectors participated in today's relief rally led by Union Budget 2017 but technology stocks (TCS down 2.7 percent and Infosys down 1.4 percent) continued to get butchered due to HI-B visa woes.
We expect interest rate sensitive sectors like banking & financial services (BFSI), auto & auto ancillaries, cement, construction and consumer goods to outperform in view of the boost that the Budget has provided, says Ajay Bodke, CEO & Chief Portfolio Manager-PMS at Prabhudas Lilladher.
According to Dipen Shah, Sr. Vice President - PCG Research, Kotak Securities, Budget has been along expected lines on most fronts.
Ashish Puravankara â€“ Managing Director, Puravankara is of the view that Budget 2017 has spelt out roadmaps and allocations across various initiatives of the Central Government and the Finance Minister has done an excellent job of managing the expectations.
With tax rate cut to 25 percent for small and medium enterprises with revenue under Rs 50 crore per year, we are ahead of the roadmap, says the CEA. This new tax rate creates a level playing field for all corporates, he adds.
Raj Jain, Chairman and Managing Director at RS Software is of the view that India will be the fastest country to adopt digital payments.
In an attempt to help banks reduce their tax outgo, the Union Budget offered a 1 percent tax sop on provisions towards non-performing assets (NPAs). However, bankers are not too happy as this may not be a substantial gain for the banks.
The tax relief given by the Government for the middle class tax payers will definitely boost the purchasing power, thereby aiding the overall growth of the economy, says Rajiv Srivastava, MD, HP India.
The government also announced setting up of two more All India Institutes of Medical Sciences (AIIMS) in Jharkhand and Gujarat and asserted that it has prepared an action plan to eliminate kala-azar and filariasis by 2017, leprosy by 2018, measles by 2020 and tuberculosis by 2025.
Subrata Ray, Group Head, Corporate Sector ratings ICRA is of the view that focus on rural economy and infrastructure are two big positives in Union Budget 2017-18.
The plight of stainless steel industry has been ignored in the Budget; despite an increase in import of stainless steel products, the basic customs Duty on finished products has been not hiked, industry body ISSDA today said.
The government's revenue foregone in the form of incentives to corporates in the current fiscal is estimated to grow nearly 8.63 percent to over Rs 83,492 crore.
Asserting that the Budget provides a 'big relief' to the MSME sector, Union Minister Kalraj Mishra today said announcements like the lowering of income tax for smaller firms and doubling the lending target under MUDRA Yojana will benefit small entrepreneurs in the country.
Indian businessmen in the Gulf today largely welcomed the Budget, regarding it as good for the long-term growth of the country's economy saying the impetus given to rural, agricultural, infrastructural sector and reduction in personal income tax, will be a game-changer after demonetisation.
The big hit appears to be the Government‘s commitment to strengthening India‘s telecom network with the allocation of Rs 10,000 crore to the ambitious Bharat Net project, says Naveen Aggarwal.
Reduction in BCD on LNG is a welcome move, which will make LNG more affordable to end users in industrial category such as ceramics, glass, chemicals besides large consumers such as power and fertilizer sectors, says K Ravichandran, Group Head, Corporate Sector ratings at ICRA.
The reduction in capital gains period for real estate is a positive move, says Shanti Ekambaram, President â€“ Consumer Banking, Kotak Mahindra Bank.
Jaitley said infrastructure was the thrust area of the government for efficiency, productivity and quality of life and approach was to spend more on infrastructure development.
Welcoming the announcement to extend the network of Pradhan Mantri Kaushal Kendras to 600 districts across the country, Rudy told PTI that in days to come, these centres would become benchmarks for skilling infrastructure.