POST Union Budget Reactions

Union Budget 2022-23 Highlights

Budget Allocated to Ministries

Dishan Kamdar, Vice-Chancellor, FLAME University 

“The decision to establish the digital university is a disruptive and futuristic decision that will benefit a large number of students even from the remotest part of the country by making world-class education accessible. This will surely give wings to the dreams of deserving students and meet the goal of providing high-quality education to all students across the country. 

The plan to increase the ‘One Class One TV Channel’ from 12 to 200 TV Channels in all States in India will enable students to learn through radio and DTH channels thereby overcoming the problem of internet connectivity. The two decisions truly reflect the Government’s aims to leverage technology advancements and use them as tools to meet the educational aspirations of a large number of students in the country. They have set an example that is worthy of being emulated by others.”

Aakash Minda, Executive Director, Minda Corporation Limited   ***Minda Corporation Limited is the flagship company of Spark Minda Group***

I am broadly pleased with the Budget 2022 presented in Parliament today by our Hon’ble Finance Minister Shrimati Nirmala Sitharaman. Dubbed the ‘booster dose budget’ in some quarters, some of the measures unveiled today, as Capex spent around 7.5 lakh crore, PM Gati Sakti projects and focuses on making India more Atmanirbhar will certainly offer a shot in the arm for the manufacturing industry. Furthermore, announcements such as the battery swapping policy and the push for cleantech and electric vehicles will further spur the growth of the EV industry while also acting as a catalyst for jobs among the youth.”

Vijay Chandok, MD & CEO – ICICI Securities

The Union Budget 2022-23 is a Budget with a vision to transform India in the medium term. The budget has adopted a new economic growth template for “Amrit Kaal” (run-up to India@100) by promoting capital expenditure-led economic growth. An outlay of Capital expenditure of Rs 7.5 lakh crore, up ~35% YoY (and at 2.9% of GDP) along with expanding the scope of private CAPEX through PLI for new age segments is expected to deliver inclusive growth, job creation, and welfare for all.    The Budget also seems to be presented in the backdrop of likely pandemic aftereffect which is reflective in the relatively conservative estimation of growth (merely ~11% nominal GDP in FY23) and receipts. Thus, there is a likelihood of a lower than projected fiscal deficit. With growth-oriented focus intact in the Budget, we expect economic and capital market buoyancy to remain. 

Umesh Revankar, VC & MD at Shriram Transport Finance

“The union budget 2022 is a bold and growth-oriented budget which will result into a multiplier effect on the economy and benefit the Aam Aadmi, despite no direct benefit transfers. We believe the FM has presented an investment-led budget and this will propel sectors like cement, steel, and construction which will lead to increased movement of goods, boost bulk transportation movement and help in the revival of the transport industry.  The government widening the ECLGS scheme & revamping CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises) are steps taken to accelerate growth and reduce stress particularly in the MSME segment. Housing project allocation of Rs 48000 crore is likely to boost growth momentum for the building materials sectors and real estate activities in general. We believe the budget is a very forward-looking one with an emphasis on the digital economy and reducing carbon footprint, which will benefit digital lending and lead to environment-friendly policies going ahead for the vehicle sector. The ease of doing business has taken center stage as the Government has committed to the long-term growth of over 8% for the next 3 years. India’s economy is now well placed and we are optimistic on credit uptake in the economy.”

Rampraveen Swaminathan, CEO, Mahindra Logistics Ltd

“We welcome this budget as it focuses on building holistic infrastructure in India. With an outlay of INR 20,000 crores via financing, the expansion of the national highways network by 25,000 kilometers in 2022-23 will provide a much-needed boost for smoother and faster logistics transportation. The announcement of 100 cargo terminals for multi-modal logistics facilities will provide integrated and seamless connectivity for the movement of people, goods, and services from one mode of transport to another. Additionally, the announcement of Indian Railways developing new products and efficient logistics services will provide a big boost for farmers, small and medium enterprises.”

Manish Chourasia, Managing Director, Tata Cleantech Capital Limited.

“The announcement of the Finance Minister to issue sovereign green bonds to mobilize resources required for green infrastructure will certainly help boost the financing of clean energy projects, thereby providing an impetus to the Indian energy sector. With the Approved Module Manufacturer List becoming applicable from April 2022, the allocation of an additional INR 19,500 crore under the PLI scheme for solar would help create a much-needed manufacturing ecosystem. The enhanced focus on electric mobility is showcasing the clear desire to mainstream this emerging industry. Overall, the budget is giving clear direction for India to meet its COP26 commitments by 2030.”

Rakesh Sharma, MD&CEO, IDBI Bank 

This is a growth-oriented, forward-looking budget with a focus on capital expenditure in the infrastructure sector, particularly in roads, railways, and their associated logistics. Coming on the back of nascent economic growth, estimated to be around 9.2% in the current year, and in the midst of the third wave of the pandemic, the Union Budget provides for targeted policy prescriptions for enabling inclusive development, productivity enhancement, and financing of investment mainly through PPP model. Keeping in view the prevailing financial strain, especially on small businesses, during the pandemic, the extension of ECLGS till March 2023, and expansion in the guarantee cover of CGTMSE will indeed be a boon for MSMEs, which have been primary beneficiaries under the scheme. I am sure that the Budget announcements will go a long way in achieving the goal of “Atmanirbhar Bharat.

Ram Iyer, Founder & CEO, Vayana Network, India’s largest trade finance platform.

“The finance minister reiterated Govt.’s commitment to the policy of stable and predictable tax regime. The announcements continued to build on the themes of the previous year, such as infrastructure, education, health, housing, and ease of doing business. The substantial increase in CAPEX is expected to have a multiplier effect and a tightrope to manage between growth and inflation.

The extension to Emergency Credit Line Guarantee Scheme (ECLGS) was expected and needed to ensure the growth and survival of MSMEs. Linking of various MSME portals, and initiatives announced towards skill development, credit, and market access reflect Govt.’s commitment towards the growth of the critical sector.  

The other interesting announcement of bringing post office accounts onto a Core Banking System will make interoperability possible, resulting in the next phase of growth for UPI and other digital infrastructure. This will also bolster the public welfare and delivery contributing towards the financial inclusion of the country.

The budget also had something for the sunrise sectors like EVs and Solar, along with capping on the LTCG which will help the start-up employees. The introduction of Digital Rupee will be a very interesting area to look out for.

It will be important to look at the finer details as they emerge and the execution, on which the success of all the policy announcements will depend.”

Venu Srinivasan, Chairman, TVS Motor Company

“Union Budget 2022 sets the pace for the Indian Economy’s growth trajectory amidst the challenges brought forth by the pandemic. The big boost to capital expenditure is welcome and it would give a fillip to the Indian economy. For the automobile sector, we welcome the ‘PM Gati Shakti Master Plan’ focusing on building world-class infrastructure and improved connectivity for commuters. The strong push towards augmenting agricultural productivity should help enable buoyant rural demand.  In the electric mobility space, we strongly support the measures undertaken by Government to promote clean and green mobility, mainly introducing the battery-swapping policy will be instrumental in supporting an efficient EV ecosystem. There is an impactful thrust towards renewable energy incentives with an increased focus on reducing infrastructural waste for a greener tomorrow.  We appreciate the Government’s vision of building the skilling ecosystem for youth in India, which will play a critical role in driving innovation in the industry.”

Sunil Duggal, Group CEO, Vedanta, 

“The FY23 Union Budget is a growth-oriented and pro-development budget with sizeable capital investment for sustained and speedy economic revival. The budget has sharply hiked the capital expenditure for FY23 by 35% to Rs 7.5 lakh crore. The government’s thrust has been to allow public investment to take center stage so that private investment can follow suit. The sizeable capital expenditure will also have a multiplier impact on the economy as it will create not only assets but also large-scale employment opportunities and lead to higher demand for manufactured goods by both large industries and MSMEs. Beyond the immediate task of ensuring that growth momentum is sustained, the budget has laid the roadmap for the nation’s development in the next 25 years with building blocks for future growth areas like artificial intelligence, geospatial systems and drones, semiconductors, space economy, genomics, green energy, and clean mobility systems. The plan to launch sovereign green bonds for green infrastructure to reduce carbon intensity and thematic funds to provide blended finance to sectors like climate action and the digital economy shows that government is now following up its commitment at COP 26 with credible action.”

Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd

“We welcome the futuristic budget presented by our  Hon’ble Finance Minister. I consider it as a visionary budget largely focused on sustainability and transition towards cleaner and greener mobility, which is the future of the transportation. The proposed Battery Swapping Policy will provide a mammoth push to the EV adaptability campaign across the nation. We are eagerly looking forward to the Government’s ambitious vision towards upgrading the EV infrastructure ecosystem and also, easing the supply chain through a multi-modal logistics park which will augment the movement of goods and services across the region. PM Gati Shakti will act as a catalyst for the industry, 60 lac new jobs will be created which will benefit the automobile industry. With the infra boost and changes in corporate taxes, the industry is optimistic that this budget will definitely augur well for the economic recovery and overall growth for the country.”

Sumeet Mehta, Co-founder, and CEO, LEAD

“Overall, this has been a progressive budget as it accelerates the government’s efforts towards inclusive and sustainable development. As an educator, I welcome the emphasis on creating digital and free-to-air channels of education. However, at the same time, the budget appears to circumvent physical schooling. I sincerely hope that is not the case. While online learning was inevitable due to the Covid-19 pandemic, it would never be as effective as offline learning, which brings out the best in students in terms of learning outcome and performance. Online education can at best only play a supplementary role in education. I would have also loved to see a greater focus on improving the teaching and learning processes in our schools vis-a-vis infrastructure and tech-enabled curriculum. Going forward, I hope there will be policy changes in that direction.”

Javed Ahmad, Sr. Vice President, Global Supply Chain, International Region, Schneider Electric

“The Union Budget 2022 made a significant endeavor in addressing some of the most pivotal issues that affect the country’s economy, and the resolution provided towards these will accelerate efforts and provide opportunities towards growth. The vastly expanding supply chain market has received immense focus in the budget, and this is an active driver of the country’s economy. The new proposals put forth by the budget will ensure that greater support is rendered to bolster the existing nexus of supply chain networks across the country, and this will further embolden them towards empowering end-to-end supply chain mechanisms for local products. Not only will this contribute towards building digitally-led, future-proof supply chain networks, but will also align with our larger goal of powering an Aatmanirbhar Bharat.

The logistics sector is a critical enabler in achieving the goal of becoming a $5 trillion economy. The implementation of the National Logistics Policy will aid in the elimination of several bottlenecks in the supply chain industry and chart a roadmap for a streamlined and scalable future for enterprises, industries, and the greater nation. Furthermore, the development of 100 cargo terminals under the Prime Minister Gati Shakti scheme is a positive step that will not only help the industry grow but will also provide more job opportunities for our country’s youth. We are hopeful for great developments and defining new possibilities with this announcement.” 

Ketan Patel CEO Mswipe

On the boost provided for the Fintech Ecosystem: The fintech ecosystem requirements have been well addressed in the budget. Measures to boost skill development through public-private partnerships, and by incentivizing courses on fintech through world-class education institutions will definitely help the workforce and the ecosystem. The government’s outlay on capital expenditure includes the proliferation of digital payments, and technology infrastructure expansion for MSMEs, both of which bring much cheer to the ecosystem players as they make efforts to drive digital penetration across India. Not just fintech, the government’s shout-out to startups across Agritech, HRtech, EdTech is a clear sign that the technology ecosystem is going to play a major role in achieving not just near-term GDP targets but in the long run, elevate India as a technology-driven economy.

For MSMEs: Interlinking portals such as Udyam, e-shram, NCS, and Aseem to improve credit facilitation for small businesses is welcome and it will push them to embrace entrepreneurship. Raising and Accelerating MSME Performance (RAMP) program for MSMEs that is slated to be rolled out in the next five years will push a high number of technology companies to come forward with innovative solutions.

For Consumer: Setting up of Digital Banking Units to mark 75 years of Independence is not just a symbolic honor but also a recognition of the digital-first banking approach that the government is keen to pursue to help the larger part of the population, which is new to digital or new to banking, find it easy to access financial services. By choosing to continue with the benefits that the digital payments ecosystem enjoys, the government has reaffirmed its commitment to digital payments and digital financial services as ‘the way forward for consumers. Bringing post offices under the core banking system is a major step to ensuring inclusive and accessible financial services to the remotest of locations in the country.

Vidit Aatrey, Founder and CEO of Meesho 

“The 2022 Union Budget is forward-looking and inclusive and lays down the roadmap for an aspirational India. Overall the government’s growth CAPEX announcement will prime the wheels for the entire economy and will have a multiplier impact. Investment-led growth which has been adopted by the government of India will result in higher quality growth versus a mere consumption-led growth. We are happy about the government’s intent to continue supporting the new age tech ecosystem by forward-looking initiatives such as the introduction of the digital rupee, extending the existing tax benefits of startups by one more year, and reduction of overlapping compliances which will improve the ease of doing business in India.

From our perspective, we have been keenly watching the developments that impact our sellers and their ecosystem and we see positive moves on those aspects. Emergency credit guarantee scheme (ECLGS) extension upto March 2023 will be helpful for the MSMEs to regain their business above the pre-pandemic levels. Further, the revamp of CGTMSE will also help the banks extend lending to the credit-starved MSMEs. Finally, duty concessions to promote electronics manufacturing, wearables, and wearables devices and mobile phones will boost Indian manufacturing and thereby reduce imports in these critical sectors”

Rahul Raj, Founder & CEO FloBiz

“We wholeheartedly welcome the Union Budget 2022-23. It is gratifying to see a sustained push towards digitization & promoting the Aatmanirbhar Bharat vision. We believe the measures & initiatives announced for the upliftment of MSMEs will significantly help in boosting the economic activity impacted by the pandemic. The decision to revamp the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme & infuse additional credit of Rs 2 lakh crore will also assist in business continuity, exploring new opportunities in manufacturing, and creating more employment avenues. In addition, the Emergency Credit Line Guarantee Scheme (ECLGS) extension up to March 2023 is a great push for the MSMEs, especially for enterprises that are not yet back to the pre-pandemic levels of business scale & are slowly moving towards their recovery. 

This Union Budget has also recognized startups as key drivers of growth and innovation in the country. The extension on the period of incorporation and providing tax incentives will provide impetus and inspire entrepreneurs to continue driving innovation to put the Indian economy strongly on a clear growth trajectory.”

 Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra and Mahindra Ltd. 

“The roadmap laid out to usher in sustainable mobility by the Honourable Finance Minister in the Union Budget 2022-23 will bolster the electric mobility adoption in India. Battery swapping can offer a practical alternative to increase the adoption of electric vehicles. As part of our Last Mile Mobility, we look forward to working with the Government, policymakers, and our partners to formulate and implement the battery swapping policy. This will include introducing interoperability standards as well as driving innovation in Battery as a Service business model.”

Baba Kalyani, CMD Bharat Forge Ltd

“I would like to congratulate the Hon’ble FM for a growth propelling budget with significant thrust on enhancing competitiveness, infrastructure development, holistic digital drive, and promoting financial inclusion. The proposed New legislation for SEZs with states as partners coupled with a heightened emphasis on the seven engines under PM Gati Shakti initiative should pave way for a New India that is recognized for its Speed, Productivity, and Scale; thus, boosting the country’s overall investment attractiveness and export competitiveness.

Aligned with the Hon’ble Prime Minister’s AatmaNirbhar Bharat agenda, the Government’s commitment to promoting self-reliance and indigenization by leveraging Indian Industry is once again reinforced with the 68% (enhanced) domestic allocation for defense capital procurement. Earmarking 25% of Defence’s R&D budget for Industry, Start-ups & Academia is a forward-looking measure that will pave way for investments in frontier technologies and capability development. Industry in partnership with DRDO through SPV mode for the development of critical weapon systems and military platforms is a path-breaking reform that will significantly transform the Indian defense eco-system and lead India to be a net-exporter of defense equipment/platforms.

I should particularly laud the thrust given to new-age technologies and wider adoption of digital platforms in Healthcare, Education, FinTech, Agriculture among others. Exclusive policy on Battery swapping, special mobility zones, and incentivizing clean technologies in public transport should lead to accelerated adoption of Electric Vehicles across the country. The increased outlay towards manufacturing of High-Efficiency modules for Solar Power and a strong emphasis on Circular Economy transition reinforces India’s commitment to Global Climate Action and Sustainable Technologies.”

Rajiv Gandhi, CEO & MD, Hester Biosciences

“The Union Budget 2022-23 is very progressive, focussing on – farmers, agriculture productivity along with the incorporation of digital technology with various segments, uplifting and supporting small enterprises and boosting infrastructure in the country. Along with that, there’s a lot of importance given to Atmanirbhar Bharat and PM Gati Shakti.”

Harpreet Singh, Partner, Indirect Tax, KPMG in India

From an indirect tax perspective, there could not have been a better day for Budget announcements as the highest ever GST collections of INR 1.41 lakh crores for the month of January 2022, were confirmed.

While the budget speech this year was truncated, the broad theme of the budget was in sync with various initiatives launched by the Government viz. self-reliant India, make-in-India, digitization, and ease of doing business.

Some of the key announcements include a proposal to replace existing SEZ law with a fully technology-driven regime and aligned reforms such as risk-based checks, to bring ease of doing business. Also, to discourage imports and provide a level playing field to domestic manufacturers, proposals have been made to further rationalize the duty rates and withdraw 350 exemptions (on textiles, leather, medical devices, etc.). Likewise, concessional rates of capital goods and Project Imports are also proposed to be gradually phased out. In addition, few duty concessions have been proposed for parts of the mobile cameras, chargers, etc. which are likely to extend much-wanted impetus to the electronic domestic manufacturers.

Sachin Menon, Partner & Head – Indirect Tax, KPMG in India

No big bang tax reforms, no appeasement of any sections, no populist announcements! Undoubtedly, this budget was focused on the revival of the Indian economy through a consistent approach to economic growth and sustainable development. The focus is on the maximum allocation of funds towards capital expenditure in advanced technology and infrastructure.

Earlier initiatives such as digitizing the tax compliances, promoting the digital economy, simplifying compliances’ etc., resulted in the buoyant GST collections for the last 10 months, averaging 1.30 lakh crore per month. In continuation of the 2 lakhs, crore PLI scheme announced earlier further investment is proposed in 5G and solar PV cells manufacturing.

The huge outlay has been proposed in infrastructure under “Gati Shakti Master Plan” encompassing road, rail, ports, airports, logistics park, etc, digitization of land records centrally, using the post offices for reaching the digital banking to villages, re-modeling SEZs; the budget makes the right choices. There are no new taxes, nor big-ticket concessions except the Customs act, and tariffs were pruned to get rid of unwanted concessions, redundant notifications and give necessary protection to “Atmanirbhar Bharat”.

Overall, the budget on the first look is very impressive, logical, and carries the right prescription to re-ignite the India growth story.

Santosh Dalvi, Partner, and Deputy Head, Indirect Tax, KPMG in India

“During last few years, there has been a focus on increasing Customs duty rates considering ‘Aatmnirbhar Bharat’ program. Though the intent of the Government is to make India a manufacturing hub for all kinds of drugs and medicines, however till our local manufacturing reaches domestic demand, imports shall continue. The rate increase on essential drugs & medicines would lead to increase in drug prices and ultimately impacting treatment cost for patients.”

Vijay Chawla, Partner & Head – Life Sciences and Head – Risk Advisory for KPMG in India

“The budget reflects a new India moving towards greater mental health initiatives and increasing digitalization for life sciences as a sector. The budget highlights the importance of a strong healthcare infrastructure backed by digital investments for long-term benefits in democratizing the healthcare industry. In one year, with the mantra of ‘Sabka Saath, Sabka Prayas we have been able to vaccinate the majority of our population, despite holding the second largest population in the world. A PLI scheme has also been introduced in the healthcare sector to reduce dependency on imports. The 35% on-year increase in budgetary support to capital expenditure to 7.5 lakh crore can boost spending on construction of hospitals and healthcare facilities, production of equipment, medical machinery as well as ICT equipment which can foster developments and further strengthen healthcare sector. With an allocation of INR 60,000 crore to the ‘Har Ghar Nal Se Jal’ program to cover 3.8 crore households in 2022-23, we could expect an overall upgrade in water quality, resulting in better living conditions to drive buoyancy in the Indian economy. Overall, the sector seems poised for a fundamental shift with the implementation of the National Digital Health Ecosystem, National Tele Mental Health Program, Continuation of ‘Sabka Saath, Sabka Prayas’, PLI Schemes, and Jal Jeevan Mission. The direction that the government has taken is a positive step towards boosting the life sciences sector.”

Sanjiv Chadha, Managing Director & CEO, Bank of Baroda

The Union Budget is an investment-oriented one that keeps fiscal prudence in mind. Hence, while the size of the Budget has increased significantly with the focus on CAPEX, the deficit has been reined in at 6.4% and hence indicates a graduated descent on the FRBM path. However, this deficit will still mean high borrowing comparable to that of last year. We may expect interest rates to be elevated and can look forward to the RBI doing more regular fine-tuning to balance liquidity with growing demand.

There is a push on several sectors such as solar energy, EVs, housing,  telecom, defense, hospitality, etc. This will help to provide a push to the private sector too.

The push to digitization especially in banking is welcome and setting up 75 units in various districts is the right step. Further, the extension of the ECLGS for another year with an enhanced limit will be good for the banking sector. We also see the issue of green sovereign bonds as an innovative measure that will provide a boost to this category of the debt market. We can see this leading down the road to further such issuances in the corporate bond market too.

Akhil Handa, Chief Digital Officer, Bank of Baroda

RBI to issue a digital rupee in FY23 using blockchain technology is the first step towards formalization of blockchain technology in banking and finance. CBDC opens up enormous possibilities for innovation. Glad the Government is taking a measured view of the same. Further, from 100 aspirational districts to 75 digital banking units, these government programs will provide the necessary focus to deliver banking products and services in the remotest areas. The digital economy is growing rapidly. All parts of the economy including commerce, financing, logistics need next-generation solutions. The Government’s focus on training human capital and launching courses in this direction is very welcome. This will also help in reskilling the human capital for the new generation economy. 

George Sam, Business Head & Co-Founder at Mindgate Solutions Pvt. Ltd

“We applaud the government’s conviction in digital banking and welcome the move to set up 75 Digital Banking Units in 75 districts in the country. This will be a step towards ensuring the citizens of the country, especially in the rural setting, are empowered and benefit through digital banking systems. This was something quite visible in urban areas so far. Thus, the nation-wide transformative potential of the FinTech sector is well poised to be realized. Furthermore, the introduction of Digital Rupee is a landmark decision. We expect this will potentially be more disruptive like UPI. While it will enable efficient currency management as an immediate benefit, it will also accelerate the target of a digital and financially inclusive India.”

Nitish Jain, President – S P Jain School of Global Management.

“From the standpoint of higher education, the budget is headed in the correct path by focusing on improving the digital infrastructure in the country. Moving ahead, the execution, and how quickly these things move will be the most important factors to watch. Education is what propels the economy and the country forward, and I am confident that Budget 2022 will go a long way toward ensuring that education remains at the top of our country’s priorities.”

 Vinay Tonse, MD & CEO, SBI Mutual Fund on Union Budget 2022 amendments.

“Inclusive development for all sections of the population while striving for growth at the macro-economic level continues to be the focus of the government, as seen in this growth-oriented Union Budget presentation of FY22-23. With the Rs 10.68 lakh crore CAPEX announcement including the provision for creating capital assets via Grants-in-Aid to the States, the government is reiterating its commitment towards stimulating growth in the economy through both central and state governments’ efforts.

The blueprint for the ‘Amrit Kaal’, the 25-year long leadup to India@100 are visionary initiatives aimed at taking us into the next phase of growth through digital transformation of all sections of the economy, transition to clean energy, adoption of climate action, encouraging private investment, building modern infrastructure funded by massive public investment, among others. The four priorities elucidated – PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action, and Financing of Investments – are all aimed at stable and sustainable growth, one that will support us all the way through to India@100 and beyond.”

Dr. Silpi Sahoo, Chairperson, SAI International Education Group

Right from the Finance Minister’s use of a Tablet to propose the budget explained that India is on the path of a digital revolution in the near future. As expected the government has well thought to reduce the digital learning gap between the urban and rural by introducing ‘1-Class-1-TV channel” covering multiple regional languages, which will not only counter the Learning losses but will bridge the learning gap. The PM’s e-Vidya will be further expanded from 12 to 200 channels to facilitate supplementary learning.

For the implementation of NEP 2020 great stress is implied on shifting the focus on Upskilling, therefore the launch of Digital DESH e-portal for skilling, upskilling, and reskilling will be the key to newer dynamics. To develop the 21st-century skills of critical thinking amongst students setting up virtual labs and skilling e-labs will be valuable. To enable quality learning for each child quality e-content will be made through various means. Teachers will be trained to use better e-teaching outcomes and enhancement of learning experiences. Huge focus was laid on e-services in rural areas, it is proposed that all the villages will be laid with optical fibers by 2025, and villages will be at par with the urban areas.

Setting up of Digital University is a great step towards accessibility of quality world-class education for all. As per the NEP 2020, Foreign Universities will be set up and Gujarat to set up the model Foreign University to make education accessible for all.

An increase in the  overall financial allocation for the education sector for 2022-23 to Rs 1.04 lakh crore from Rs 93,224 crore (Budget estimate) in 2021-22 in view of Samagra Shiksha is certainly a welcome move. It’s a great education budget; belling the cat at the right time though the implementation is to be thought upon. We are looking forward to a quick implementation of the proposals.

Vaidyanathan V, CFO At Great Lakes Institute of Management, Chennai

Budget 22 has provided a much-required push to the economy by increasing the allocation to Capital Expenditure by about 35%. The budget has given thrust to the Gati Shakti – for sustainable growth. The budget has also given a push to the digital economy, introduction of Digital currency starting 200 TV channels to fill the gap in the learning of the children due to the pandemic are some of the welcome points. Repealing 1486 Acts, which were redundant, the introduction of e-passport, thrust for EV (electric vehicle) by the introduction of charging stations and battery swapping are all welcome moves. Modification to the filing of tax returns for rectification/ including left out income at a nominal fee is a welcome move to avoid litigation.

Post budget reaction quote from Prof. Hema Swamy, Assistant Professor, Finance at Great Lakes Institute of Management, Chennai

While energy-efficient trains like Vande Bharat or ‘eco-friendly’ housing schemes are welcome, it is important to educate, support, and improve sustainable lifestyles in as many spheres as possible. This could be through eco-friendly educational initiatives through television like growing your own food or water conservation measures aimed at school children, the allocation for urban kitchen gardens in PM housing schemes and government hospitals, and other such micro-level interventions that can facilitate the conscious adoption of a sustainable lifestyle.

Views to be accredited to Avinash Kumar, Founder, Credenc

We welcome the Union Budget announced by the Finance Minister that is positively focused on e-learning to address the rising concern on education in the country. The development of a digital university & expansion of the present PM eVidya Scheme from 12 channels to 200 channels will facilitate supplementary learning for all classes from 1 to 12 in regional languages. This will help students to access world-class quality education, especially in remote rural areas. Moreover, An innovative and path-breaking initiative of the digital university and One Class One TV Channel was a much-needed scheme to help overcome the loss of learning due to the pandemic. This much-required shift to digital learning will accelerate the growth of ed-tech companies and will fuel growth within the sector.

POST BUDGET REACTION QUOTE – DR MONA LISA BAL, CHAIRPERSON, KiiT INTERNATIONAL SCHOOL

The Union Budget 2022 announced today was a hit and miss for the education sector. While it has finally addressed and recognized the learning loss the pandemic has created, the need to develop the digital infrastructure of the country was not adequately focused on the budget. The economically disadvantaged students especially in rural areas have lost essential years of education and the introduction of supplementary teachers was highly necessary. Supplementary education can help bridge the gap to a large extent. The increase of ‘One Class One TV Channel’ from 12 to 200 TV Channels to provide supplementary education in regional languages for classes 1-12 is a welcome move but it will not be enough. It is important that we adapt our education system, pedagogies, and assessments according to the changing times. Upskilling is the need of the hour. Thus, the launch of the Digital DESH e-portal for skilling, upskilling, and reskilling will be key to adapting to the shifting dynamics of our present. Setting up virtual labs and skilling e-labs will be valuable in developing critical thinking amongst students. Access to high-quality e-content can help enhance the quality of education received by students. Making this accessible in regional languages additionally is a positive step towards a wholesome education. The development of a digital university to provide access to students for world-class quality education with ISTE Standards will be beneficial in the long run by making education available for a wider audience through the power of the internet. However, the much-needed increase in budget allotment for the education sector was missed. Further constructive measures towards digitization and resuming physical classes are needed.

Aneel Gambhir, CFO, Blue Dart

“We are pleased to note that the Union Budget, is progressive, focuses on growth, and is in line with our expectations. The Government’s focus on consistently investing in infrastructure development across the country bodes well for the Indian economy and more specifically for the logistics industry. The focus on public investments, by expanding the National Highway network by 25,000kms, the Gati Shakti masterplan with seven engines, 100 new cargo terminals, will give an impetus to the growth of the industry and help bring efficiency in logistics operations. We must also recognize the push for utilizing and promoting a digital ecosystem, whether that be with the launch of Gati Shakti and the numerous opportunities it initiates or the adoption of eVehicles; it further streamlines systems and processes, propelling the idea of Aatmanirbhar Bharat. 

The prioritization of technology is a 2-pronged strategy that also seeks to drive cleaner operations. The announcement of the special policy for battery swapping, introducing a uniform standard for EV batteries, encouraging the private sector to engage in sustainable business models, and setting up additional public charging stations, have the potential to revolutionize the eVehicle industry. Moreover, eVehicles can also play a key role in last-mile logistics, a feat that can assist the industry in reducing its carbon footprint. The Government has also highlighted initiatives that will be beneficial for all by reducing the surcharge on long-term capital gains.

While the budget carries good news for the logistics sector, we are happy to note the Government’s efforts in propelling areas such as infrastructure, digitalization, sustainable practices and citizen well-being, all of which require a special focus going into the new financial year. The world is now acclimated to COVID-19 and we are keen to see the subsequent results of these initiatives on the nation, going forward.”

Aakash Chaudhry, Managing Director, Aakash Educational Services Ltd

“The Union Budget FY2022-23 is growth-oriented and has put the much-needed impetus on digital education boosting the penetration of learning where online education is still not accessible. To effectively bridge the learning gap created due to the pandemic, efforts such as setting up of the digital university, providing high-quality e-content, expansion of ‘One class, one TV channel’ under the PM e-Vidya scheme, equipping teachers with digital tools, creating virtual labs, promoting critical thinking will not only improve learning outcomes but will also provide students access to world-class universal education with a personalized learning experience at their doorsteps. 

By developing syllabus in different languages, focusing on skilling, reskilling and upskilling youth, the Government has demonstrated its commitment towards breaking the glass ceiling and encouraging education in regional languages. Collaboration between public universities and institutions will create a network of the hub-spoke models with competitive mechanisms building a resilient mechanism for education delivery. 

The budget aptly addresses last-mile delivery reach with a strong focus on empowering teachers through digitization and the necessity to train students in sync with global standards. The 25-year vision will build an open, digital, connected and inclusive India.” 

Alok Dubey, Chief Financial Officer, Acer India

“The Union Budget announced today showcased the government’s initiative towards Digital Transformation. From announcing a Digital University, for online learning to high-quality e-content across languages will enable the youth to skill, upskill and reskill themselves. These programs under digital learning and the connectivity expansion will further strengthen the availability and accessibility of internet in rural areas.

With Govt infrastructure spending push, we are likely to see more employment and growth opportunities and enhanced private sector investment in manufacturing. We are confident that the exemption of duty on parts of select electronic items will further boost the domestic manufacturing of electronics goods under the PLI scheme. Overall, the Union Budget 2022-23 is a promising budget and a step forward towards ‘Aatmanirbhar Bharat’.”

Ashwin Mittal, CMD, and CEO, Course5 Intelligence Ltd

India’s Hon. Union Finance Minister Smt. Nirmala Sitharaman’s futuristic growth-friendly Union Budget rightly envisioned the roadmap for India entering Amrit Kaal, the 25-year long leadup to India@100. Analytics is the key to the successful implementation of the multi-modal PM GatiShakti master plan with its seven-engine focus for economic transformation and inclusive development for India@100. FM highlighted Artificial Intelligence (AI) as a sunrise opportunity while advocating promoting digital economy & fintech, technology-enabled development; and we, at Course5 Intelligence, reiterate the importance of AI-led analytics and insights. The role of analytics is more pronounced post-global pandemic accelerating digital adoption by companies globally as they seek to digitize their core business model to remain economically viable. We, at Course5 Intelligence, have been working with Fortune 500 global giants and it is good to see that the Indian Government is now aligned to this progressive global thinking. As FM included Data Centres in the harmonized list of infrastructure, we re-emphasize the significance of Data and Analytics, which is expected to account for 13.9% of the estimated total digital spend (US$2.39 trillion) by 2024. The boost to startups will facilitate the innovation required for Digital India. As the Government invites private participation in strengthening public infrastructure and seamless coordination between diverse pillars, we advocate the growing significance of AI-led analytics in Urban Planning. Clearly, the government is focusing on deep tech at an opportune time. Till now the focus has been on the application layer which provided solutions to problems and business opportunities. A focus on deep tech will only highlight the significant role data analytics and AI can play in providing that strategic depth to the digitalization of India. With our rich experience in AI-driven data analytics and insights, we at Course 5 Intelligence look forward to supporting the tasks ahead.

Rajkiran Rai G, MD, and CEO, Union Bank of India

The Budget 2022-23 is set in the context of recovering the economy with good macro stability. The Finance Minister takes forward growth impetus through enhanced outlays on public CAPEX, incentives for digital, start-ups, supporting MSMEs, and targeted welfare spending in 2022-23. The cumulative Government support through ECLGS rising to Rs 5 trillion till March 2023 is a welcome enabler for credit to vulnerable sectors of the economy. Moreover, the absence of capital allocation for public sector banks reaffirms confidence in the strength of the banking sector in meeting the credit needs of the economy. Overall, it is a growth-oriented Budget.

Sandeep Runwal – President, NAREDCO Maharashtra and Managing Director, Runwal Group

”For the first, time the Finance Minister has sought to transform the real estate sector by bringing in transparency and efficiency in the business. This will help to reduce the cost of transactions and will ultimately benefit the homebuyers. 
The Government’s plan to launch ‘Ease of Doing Business 2.0′ is a step in the right direction and its continuous efforts to promote the same along with digitization will help the economy and the real estate sector business going forward. Single Window clearance mechanism too will go a long way in improving ease of doing business in India. This should include more dynamic aspects and make India a more investment-friendly destination. 
In 2022-23, 80 lakh households will be identified for the affordable housing scheme, and Rs. 48,000 crore allocated for PM Awas Yojana. This together will boost the affordable housing segment and help to achieve the Prime Minister’s vision of Housing for All. Also, the 60,000 houses to be identified as beneficiaries for PMAY in rural & urban areas will ensure that more and more homebuyers get to avail of this benefit. 
As anticipated, it’s a very futuristic budget focusing on economic recovery benefitting from public investment and capital spending.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

“The budget’s resolute focus on infrastructure will certainly aid the real estate sector growth trajectory. The impetus given to road infrastructure through the new 25,000 km National Highway network will offer new momentum for the sector by opening a new market in tier-2 and tier-3 cities. The allocation of INR 48,000 crore for PMAY Urban and Rural will push the affordable housing segment.

The move to appoint a high-level panel for urban planning and designating the five existing academic institutions as the Centre for Excellence for urban planning with an endowment fund of Rs 250 crore will prove pivotal for the real estate sector as both the emerging urban landscape and decaying city infrastructure need a complete overhaul. The emphasis on promoting the use of public transport in urban areas is futuristic, considering the traffic and pollution scenario in all metro cities.

Bringing 1.5 lakh post offices under the core banking system will enable financial inclusion and provide access to accounts through net banking, mobile banking, ATMs to the marginalized section. This will prove significant for farmers and senior citizens in rural areas to invest by enabling interoperability and financial inclusion. Eliminating 75,000 compliances and repealing 1,486 union laws for facilitating ease of doing business environment is a great step to promote young entrepreneurs and start-up ecosystem. In a nutshell, the budget is progressive.

However, the budget missed the opportunity to accord the long-pending industry status to the Real Estate sector as a whole; currently the same has been accorded only to affordable housing. This long-pending demand would have helped developers raise funds at lower costs.”

Santosh Dalvi, Partner, and Deputy Head, Indirect Tax, KPMG in India

The Fiscal Budget 2022-23 proposals, Hon’ble FM Nirmala Sitharaman’s fourth budget, is aptly power-packed to encourage Make In India and Atmanirbhar Bharat.

The proposals meet its objective of encouraging manufacturing in India with the right push on capital expenditure, infra projects, Production Linked Incentive Schemes, phasing out of Customs Duty on import of finished goods, and concessional Customs Duty on inputs. In this, it supports all critical sectors of India including electrical products, Chemicals, Gems & Jewelry, Steel, etc.

Hon’ble FM applauded and thanked the taxpayers for the highest GST collection so far (January 2022) and also appreciated GST Council for its contribution in stabilizing the GST law. Major Indirect Tax proposals include:

Much awaited change in legislation for the Special Economic Zone scheme to enhance the competitiveness of exports.

Making Special Economic Zones compliances and administration technology-driven through Central customs portal with effect from 30 September 2022.

Phasing out of Customs Duty concessions on finished products for specified industries.

Proposing Customs Duty concessions for import of inputs and raw materials for specified sectors.

Levy of interest on net cash liability under GST

Overall, the budget that started with a speech drawing wisdom from the ancient text of Shanti Parva from Mahabharata truly lived through the wisdom by bringing in a perfect blend of facilitation and enforcement.

Amarjeet Singh, Partner, and National Lead, Emerging Giants and Startups, KPMG in India

The policy announcements around Ease of Doing Business 2.0 are recognition by the government that lot more hoops need to be crossed for making India a favorable destination for FDI. The Central government and State government will need to work together to make this phase successful.

Manish Aggarwal, Partner, and Head – Infrastructure and Special Situations Group, KPMG in India

The Budget 2022 has carried forward the positive momentum built with buoyancy in the tax collections, and large investments in capital investments made in the fiscal year 2022 to counter the pandemic. A conjoined approach of investing at scale in infrastructure alongside a sharp focus on integrating it via digital technologies for better economic outcomes has been announced.

The budget announced a 35% uptick in capital expenditure outlay to INR 7.50 Lakh Crore. Seen together with INR 1 lakh crore support provided to states for CAPEX commitments, this is a very significant increase overall. Highways continue to corner increasing allocations given its superlative delivery – An expressway program has been announced and a focus on multi-modal connectivity is the central theme. ‘logistics synergy with a world-class infrastructure’ seems to be the focus.

Energy Transition is one of the corner pillars of growth over the next 25 years. Measures have been announced to increase adoption and encourage domestic manufacturing of solar equipment via an increase in PLI by INR 19,500 Crore. The inclusion of data centers, energy storage, charging infrastructure in the ‘harmonized list of infrastructure’ will enhance capital flows in the clean energy and technology-linked sunrise sectors.

Financing of investments has been introduced as a key item in the budget.

However, the budget lacks the specifics of rebooting private sector investments in the sector. The budget could have laid out time-bound disinvestment and asset monetization targets, a PPP structuring facility to reignite private sector interest, and a long-standing demand for creating an ‘independent institutional structure’ to resolve commercial issues around PPPs. However, the Budget shied away from such measures. Focus largely has been around much-increased government spending.

Himanshu Parekh, Partner, Tax, KPMG in India

Budget 2022 is an inclusive and growth-oriented Budget, catering to the needs of every sector. The Finance Minister gave a much-needed boost to the infrastructure sector by announcing a significant CAPEX outlay for infrastructure. The proposal to introduce digital currency using blockchain technology will give an impetus to the digital banking sector. In a move to boost exports, the extant SEZ Act will be replaced with new legislation that will apply to industrial enclaves. Few proposals were introduced to provide succor to rural and agri-economy. Opening the doors to overseas universities in GIFT city is a welcome measure. In order to provide a boost to the start-ups, the eligibility for claiming tax holiday is proposed to be extended by one more year. Similarly, the concessional tax regime for newly set up manufacturing companies has been extended by one year, to March 2024. The Finance Minister laid to rest the conundrum around the taxation of virtual digital assets by introducing a 30% tax on income from the transfer of such assets. The introduction of a new Tax Litigation management scheme is a welcome measure. Directionally, it was a good Budget aimed at pump-priming the economy, ramping up government expenditure, and stimulating growth in the economy.

Nandita Tripathi, Partner, and Tax Sector Head- ENR, KPMG in India

Budget 2022 is directionally good – signals policy stability, is growth-oriented, and is strongly inclined towards a favorable investment ecosystem. Aligned to India’s overall global commitment to tackling climate change, the FM tabled finite steps demonstrating a clear focus on clean energy, electric mobility, domestic capacity building, and energy transition. The launch of the battery swapping policy not only encourages private sector participation in the electric charging segment but also provides a much-needed fillip to electric vehicle manufacturing and use. The benefit of lower tax rate being extended for manufacturing companies for one more year will provide more room for EV manufacturing in a cost-competitive environment. Further, the use of green bonds for environmental-focused projects is expected to boost financing for clean energy. Proposal for inclusion of data centers and energy storage systems in infrastructure definition will open new avenues for such businesses, including monetization through InvITs. Further, the allocation of INR 19,500 crore for the PLI scheme for the manufacturing of high-efficiency modules is expected to boost domestic module manufacturing. For the energy sector, overall a ‘green budget’, focusing on long-term sustainable development and on the right path for achieving India’s climate goals.

Naveen Aggarwal, Partner, Tax, KPMG in India

Tax measures in #Budget 2022 are built on pillars of stability and predictability, building trust, voluntary compliance, simplification, and dispute minimization. With several measures to clarify Revenue positions and reduce uncertainty, dispute management efforts are likely to get a fillip with a collegium of Senior Revenue officials to decide the filing of appeals by Revenue, where an identical question of law is pending adjudication in Courts. While taxpayers are now getting additional time to do course correction on declared income subject to additional tax payment, these measures would help address the cycle of avoidable litigation.

Rajeshwar Burla, Vice President and Group Head, Corporate Ratings,  ICRA Limited.

Infrastructure Sector

The gross budgetary support towards capital expenditure has been increased significantly with the infrastructure sector being the key beneficiary. The capital expenditure is budgeted to increase to Rs. 7.5 trillion in FY2023, which is 35.4% higher than Rs. 5.5 trillion in FY2022 BE, and 24.4% higher than Rs. 6.0 trillion in FY2022 RE. This apart, the special assistance as loan to states for capital expenditure has been increased to Rs. 1.0 trillion in FY2023 BE from Rs. 15,000 trillion in FY2022 RE. Significant support to states is expected to revive the CAPEX by state governments. This along with higher CAPEX by the center is expected to support the order inflow for contractors.

The union budget has also proposed to allow the use of surety bonds from Insurance companies as a substitute for bank guarantees in government procurements. This will reduce the margin money/collateral requirement and consequently indirect costs for construction contractors. Further, provision for release of 75% of running bills mandatorily within 10 days will support the cash conversion cycle of contactors. Overall, these measures are positive for construction companies.

Road Sector

FY2023 is a crucial year for two reasons: a) the importance of Government spending on infrastructure to revive the economy and b) the significant catch-up required in the ongoing Bharatmala and allied programs. Given the rising debt levels at NHAI, the GoI decided to fund the capital outlay for national highway projects largely through budgetary support in FY2023. Therefore, NHAI is unlikely to borrow incrementally in FY2023. To plug this, the budgetary allocations for the Ministry of Road Transportation and Highways have increased sharply by 73% to Rs. 1.87 trillion in BEFY2023 from Rs. 1.08 trillion in BEFY2022 and 55% higher than REFY2022 of Rs. 1.21 trillion. However, including the IEBR (market borrowings) and asset monetization proceeds for the NHAI, the total capital outlay increased marginally by 4.8% to Rs. 2.08 trillion in BEFY2023 as against Rs. 1.98 trillion in BEFY2022 but 1.7% lower than REFY2022 of Rs. 2.11 trillion. Further, the asset monetization target of Rs. 200 billion in FY2023 can be comfortably met given the strong appetite for road assets as witnessed during FY2022.

Airport Infrastructure sector

The government’s focus on the airport infrastructure sector continues with the budgetary allocation of Rs. 51.74 billion in FY2023, an increase of 24% YoY as compared to revised estimates (RE) FY2022. Of this Rs. 45.74 billion [against Rs. 31.82 billion for RE FY2022] is towards the development of infrastructure for existing airports, construction of new airports under airports authority of India (AAI), and Rs. 6.00 billion [against Rs. 9.94 billion for RE FY2022] towards the revival of 20 airports and for commencement of 90 routes under the regional connectivity scheme (RCS).

Cement

The government’s continued focus on the agriculture sector along with rural development is reflected in an increase in the budgetary allocation by 2% to Rs. 2.7 trillion in FY2023 BE compared to FY2022 BE. This is expected to support income for farm households and thereby support demand for rural housing, which is a significant contributor (of around 30%) to the overall cement demand. In addition, the target construction of 80 lakh houses under PMAY, both rural and urban, is supported by a budgetary allocation of Rs. 480 billion along with a 35% increase in capital outlay towards infrastructure to Rs. 7.5 trillion including an additional allocation of Rs. 1.0 trillion towards state government projects is expected to bolster cement demand. 

Dr. Silpi Sahoo, Chairperson, SAI International Education Group

Right from the Finance Minister’s use of a Tablet to propose the budget explained that India is on the path of a digital revolution in the near future. As expected the government has well thought to reduce the digital learning gap between the urban and rural by introducing ‘1-Class-1-TV channel” covering multiple regional languages, which will not only counter the Learning losses but will bridge the learning gap. The PM’s e-Vidya will be further expanded from 12 to 200 channels to facilitate supplementary learning.

For the implementation of NEP 2020 great stress is implied on shifting the focus on Upskilling, therefore the launch of Digital DESH e-portal for skilling, upskilling, and reskilling will be the key to newer dynamics. To develop the 21st-century skills of critical thinking amongst students setting up virtual labs and skilling e-labs will be valuable. To enable quality learning for each child quality e-content will be made through various means. Teachers will be trained to use better e-teaching outcomes and enhancement of learning experiences. Huge focus was laid on e-services in rural areas, it is proposed that all the villages will be laid with optical fibers by 2025, and villages will be at par with the urban areas.

Setting up of Digital University is a great step towards accessibility of quality world-class education for all. As per the NEP 2020, Foreign Universities will be set up and Gujarat to set up the model Foreign University to make education accessible for all.

An increase in the overall financial allocation for the education sector for 2022-23 to Rs 1.04 lakh crore from Rs 93,224 crore (Budget estimate) in 2021-22 in view of Samagra Shiksha is certainly a welcome move. It’s a great education budget; belling the cat at the right time through the implementation is to be thought upon. We are looking forward to a quick implementation of the proposals.

Irfan Razack, Chairman, and Managing Director, Prestige Group

“Union budget 2022 holds a visionary & ambitious sentiment. Its allocated a substantial thrust towards infrastructure development, urbanization, agriculture and digitization which will help in overall economic growth including employment generation. The prices of steel industry and import of raw materials remains unchanged which will provide the much required relief and impetus to the real estate and ancillary sectors. The forward looking outlook/perspective has recorded a positive reaction from the market and is likely to aid the upswing in property buying too”.

Bibin Babu, Co-founder, MetaSpace

“It was certainly a growth budget, and the introduction of India’s own digital currency ensures the cryptocurrency industry’s future success. The tax provision of 30% was announced in the Union budget 2022 for digital assets. No expenditure deduction except the cost of acquisition. It’s a win-win situation! Now, retail investors should no longer worry about whether they can invest in cryptos.”

Mo Akram, Ideator, MetaSpace

“Union Budget 2022 confirms more crypto adoption on the way as it presents fine-tuned clarity on the crypto landscape. There will be a sensational boom for cryptocurrency as more emerging investor classes begin to recognize its potential of it, leading to more blockchain innovations. Yet another step towards positive crypto regulations and taxation clarity. “

Abhay Aggarwal, Founder & CEO, Colexion

Cryptocurrency seems to have caught the government’s attention after FM recognized the currency as virtual digital assets. However, the biggest eye-catching part is the government’s decision on crypto taxation. It is noteworthy to consider this move as a progressive step towards monitoring, authenticating, and regulating the crypto ecosystem in the country and bringing possible transformations.

The highlight of the Budget for me is that India will be launching its own digital currency by next year. It’s a historic move as people are finally clear that digital currency is here to stay and can make a rational choice while investing in cryptocurrency.  I hope this catches on and banks, too, start getting involved with the crypto industry as well.

Amit Singal, General Partner, Fluid Ventures\

“Startups have got a boost in this year’s Union Budget. Among the many incentives proposed in the Budget is the reduction of voluntary exit, where the government has allowed the closure of a private limited company in 6 months of non-functioning. This will not only help accelerate and provide relief to startups wanting to shut a business but encourage them to experiment. Earlier they had to run the company for 18 months, even after closure, to avail of the benefit of the Fast Exit facility.

The surcharge on Long Term Capital Gain (LTCG) has been capped to 15%, which is again a good move to bring more HNIs into startup Angel investment.”

Diego Graffi, Chairman and MD Piaggio Vehicles Pvt. Ltd.

“The overall budget had two positive highlights – one is on the infrastructure push and the other on how systematically the government is prioritizing digitization and building the eco-system. I believe these are the key attributes towards the country’s sustained long-term growth. As an industry, the life insurance sector has systematically played its role in nation-building by leveraging our long-term funds towards infra projects and other similar projects of the nation. The focus of this budget only sharpens this focus for us. Furthermore, the discussion on NPS is also timely as we need to continuously emphasize the need to invest towards post-retirement needs. Irrespective of the customer segment discussed in this budget, I believe through interventions of these kinds on national platforms will only enable many more people to realize the benefits of saving towards their retirement needs. I’m hopeful that the government will enable the life insurance industry to play a greater role in bringing in more people to save towards retirement needs, in the time to come.”

Sudha Srinivasan, CEO, The/Nudge Centre for Social Innovation

Jobs and Youth:

“The need for a  transformative approach that balances economic growth and sustainable development is significant. The Budget’s PM Gati Shakti plan is inclusive and transformative for youth, women, and farmers.

Recognizing the complementary roles of IT Communication, and Social Infrastructure development has the potential to create jobs and entrepreneurial opportunities for youth across the ‘7 engines’ identified. The recognition that the current model of urban development will have to be redesigned is something that we in the social/development sectors have been propagating. A balance between nurturing megacities and their hinterlands to become current centers of economic growth, in addition to ensuring tier 2 and 3 cities become spots for sustainable living with opportunities for all, will be very important.

The budget’s focus on skilling is a welcome move in empowering India’s workforce in accessing better employment opportunities. The launch of Digital Ecosystem for Skilling and Livelihood’s Stack e-portal and focus on online training will lead to greater innovation and up-skilling. With the focus on skilling and productivity-linked incentive schemes, the country can create over 60 lakh jobs in 14 sectors. The interlinking of Udyam for MSME registrations, eShram for unorganized workers, National Career Services for MSME employment, and Aatamanirbhar Skilled Employee Employer Mapping for skilled workforce will help in providing skilled workers in the unorganized sector with better job opportunities.”

Agri-Tech:

“The need for a transformative approach that bridges the divide between our farmers and access to technology, is of paramount importance in a majorly agrarian economy like ours. The plan to deliver digital and hi-tech services to farmers with the involvement of public sector research and extension institutions, along with private agri-tech players and stakeholders of agri-value chain, a scheme in PPP mode is something to watch out for. We also welcome the move to create a fund to finance startups for agricultural and rural development.

We look forward to collaborating with central and state governments in mission mode to enhance the reach of agri-tech based solutions to youth and farmers of this country. We seek to partner with stakeholders across the agricultural value chain to further skill development in this space and increase the employability of educated youth to enhance productivity and make India truly Aatmanirbhar in agriculture. The creation of blended capital through NABARD for startups in agriculture & rural enterprise, relevant to the farm-produce value chain and to support  Farmer Producer Organisations is welcome.”

Overall:

“It is very encouraging to see the focus that this government has given to schemes like Har Ghar Nal se Jal. It is 2022 and about time that we put in the focused effort to make sure that every household has access to clean drinking water. It is also nice to see the setup of the fund to promote agricultural startups. In there, it would be worthwhile to put the focus on livelihood of the farmer and make sure that the livelihood opportunities are enhanced through the use of this fund.”

Vinaya Varma, MD, mjunction services limited

Providing a broad-spectrum booster shot to the economy, Budget 2022-23 is progressive – especially with its emphasis on building the country’s infrastructure. It clearly emphasized the top priorities of the government – PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments.

Following India’s Net Zero commitment articulated at the COP26 summit, this year’s Union Budget speech rightly focuses on the key themes of energy transition and climate action. The announcement of the setting up of four pilot projects for coal gasification and conversion of coal into chemicals highlights the country’s stance that there should be mindful utilization of resources.

The energy transition requires major investments and the planned issuance of sovereign green bonds will help raise the required funds at competitive rates to support the massive green infrastructure initiative needed to progressively bring down our carbon footprint.

The Budget has made a strong push for infrastructure-led growth with the capital outlay for infrastructure projects raised by 35% in FY2023. Investments centered around the Gati Shakti Master Plan in core sectors have the potential for spurring demand for metals. Cumulative allocation to flagship schemes like PMAY and Jal Jeevan Mission has been increased, which is a positive for long steel and pipe manufacturers.

Focus on self-reliance, especially in Defence and Solar Module manufacturing, remain positive for domestic steel demand. On the raw material side, the extension of customs duty waiver on ferrous scrap in FY2023 is a welcome development for secondary steel manufacturers. However, withdrawal of ADD/CVD protection on certain stainless steel, coated steel flat products, bars of alloy steel, and high-speed steel may impact the domestic industry.

Rajiv Bansal, Director-Operations, GIIS

“FM Nirmala Sitharaman talked about the impact of the pandemic on the education sector and highlighted the need to strengthen the education system by improving e-content quality, emphasizing teaching training, adopting innovative mediums of instruction, etc. to positively impact learning outcomes. The Union Budget 2022 highlighted the importance of adopting a progressive and inclusive approach by educational institutions across primary, secondary, and higher education. Announcements like eVidhya scheme and ‘One Class One TV Channel’ expand the learning horizon of the students and bring inclusivity as the regional languages are promoted equally. Adoption of technology and digitization will help a student evolve into becoming a truly global citizen and will encourage a lifetime of learning. Focus on reskilling and upskilling at a higher education level and launch of the Digital DESH e-portal will enhance vocational learning and job readiness, making students independent and result-oriented. As a key member of the Indian education system, GIIS congratulates the Govt. for presenting a progressive and inclusive budget for the education sector. We are confident that digitization and technology will help in building a more effective and rewarding education system in the years to come.”

Nitin Gupta, President- Sales, Marketing, and CRM (Head) at Mantra Properties and Developers

“We welcome the Union budget which is full of optimism with the growth and development agenda. It’s promising and almost all of the industry-specific requirements have been addressed in this budget. The main focus was on the upcoming sunrise industries. Along with that a sum of Rs. 48000 Crore has been allocated for affordable housing, which is certainly for the betterment of the real estate industry.

On the other hand, a fiscal deficit of 6.4 percent is absolutely the right figure at present, and the plus point with that is the capital expenditure which has seemingly gone up. On a whole, it’s a very positive move keeping in mind the real estate sector growth.  Battery swapping policy has been introduced keeping in mind the electronic energy vehicle system which is again a visionary step towards clean and sustainable energy development policies. Also for the first time, it has been announced in the budget to introduce digital currency by the Reserve Bank of India, which is a revolutionary idea altogether. Overall, the 2022 Government budget is visionary, sustainable have almost everything with a growth perspective for various sectors.”

GSK Velu, Chairman & Managing Director, Trivitron Healthcare and Neuberg Diagnostics

As expected, Budget 22-23 was a balanced effort to improve overall economic growth. Today, the healthcare sector in India is in a much stronger position than ever before. Measures introduced in Budget 2022-23 will further strengthen the healthcare sector while focusing on prevailing challenges.

The rollout of a National Digital Health Ecosystem will ensure that all segments of the society are able to access affordable and adequate healthcare in a seamless and efficient manner. Such an ecosystem can potentially make universal healthcare a reality for India.

Further, the fact that mental health counseling and care services found a place in the budget is a testament to how far we have come as a country. Inarguably, the Covid pandemic has adversely affected the mental health of the population at large. Thus, the launch of a National Tele Mental Health program can play a catalytic role in both normalizing conversations around mental health as well as ensuring that people are able to seek support for mental health-related challenges.

Though there was not much for the medical devices industry directly in the Budget, the industry will benefit from the Government’s increased focus on healthcare. The National healthcare mission outlay has been kept at ~37,000 crores like the previous year and this is a bit disappointing, considering the fact our healthcare infrastructure needs a big boost in the coming years. The demand from all healthcare experts was to increase healthcare outlay in the current budget.

A Ganesan, Group Vice Chairman, Neuberg Diagnostics

Reduction of sur-charge to 12% on Long Term Capital Gains is a welcome step.

Unintentional errors in Income Tax can be corrected by filing updated returns within 2 years from the end of the Assessment year – This is a positive change.

Department to wait before filing an appeal in a higher court in respect of disputes of similar nature with regard to the interpretation of the law, in case cases of similar nature are pending in Supreme court / other courts – This is also a very good step.

A significant increase in Capital expenditure allocation by almost 35% will probably spur economic growth and create jobs.

Extension of the emergency credit guarantee scheme till 31/03/2023 is a step in the right direction.

National Digital Health Ecosystem, National Tele Mental Health Programme – Very good initiatives if implemented well 

 Vikas Bajaj, President, AIFI (Association of Indian Forging Industry) said,

“This Union budget focuses on investing more on infrastructure and renewable energy, which will indirectly support employment generation. Apart from that, the government has focused on strengthening the logistics sector, digital education, health infrastructure, etc. which is a welcome move. Apart from encouraging EV by creating a battery swapping strategy to overcome EV charging infrastructure, I believe there isn’t much in the budget to support the auto sector as was expected. Also, not much changed in the Direct Tax rates for Corporates as well as individuals except incentives for start-ups by extension of timeline for the start of production u/s 115BAB. Some industries, such as jewellery, have benefited from reduced customs duties on precious stones and other commodities. Finally, to assist the MSME sector, the ECLGC scheme has been extended for MSE’s till 31st March 2023”.

Farrokh Cooper – Chairman & Managing Director – Cooper Corporation Pvt Ltd Said,

“The Union budget 2022-23 announced today by honorable finance minister has shown a progressive and futuristic approach for all sectors in India, which will help boost the Indian economy and recover from the pandemic. The government has taken some prudent initiatives for MSMEs in this budget, and I believe that their approach to fast-tracking the economy by providing opportunities to start-ups and businesses and creating six million new jobs will not only boost the economy but will support our future generation with an advantage above all. The government’s support for manufacturing, agriculture, healthcare, MSMEs, and infrastructure as well as the expansion of 100 PM Gati Shakti Cargo terminals over the next three years, are encouraging steps toward a brighter and more successful India in the coming years.”

Anurag Garg, Managing Director & Country Head, Vitesco Technologies, India said, 

“In today’s budget, there are so many important announcements that will be helpful for the Indian automotive segment paving their way into EV segment and manufacturing sector at large. Continuing with the ‘Atmanirbhar Bharat’ stride from last year, there is a continuous strong push towards building self-reliance in manufacturing and localization in this budget too. This year the government has shown major attention to the overall digitalization of various services and pushing clear air & sustainability as one of the most important highlights. We appreciate the heightened emphasis in respect to the EV segment, the introduction of the new policy for battery swapping will encourage the use of electric vehicles. We also look forward to seeing further action to step up initiatives to boost EV infrastructure and EV ecosystem to achieve its broader decarbonization goals and support clear air resolutions.  With additional increased focus on expanding EV infrastructure across the country, with more EV charging stations to help vehicle owners to shift to electric cars without the lesser worry of connectivity, these decisions were much needed at this period to boost usage of EV”.

Malviya, President, Tezos India

We are happy to note that the FM has announced crypto tax provisions in this budget, legitimising crypto transactions in some way. However, it is disappointing to see that the Government has decided that the income from the transfer of digital assets will be taxed at 30 per cent — which seems to be too high, given that the NFTs, cryptocurrencies and digital assets space is already booming and has immense potential for the economy in the near future. I am hopeful and certain that once the full potential of crypto is realised it will be lowered further.

Arvind Hali, MD & CEO, Motilal Oswal Housing Finance.

The Budget 2022-23 announced today is Bold & Non-Populist One, in the election bound year, with focus on long term development of the country.

Good news of record GST mopping of 1.41 Lakh Crore in January 2022, preceded the Budget commentary, hinting at sharp revival of economy post Covid impact. In continuance Budget projected GDP growth rate of 9.2% with fiscal deficit of 6.9% while 35%+ rise in CapEx, which is a clear indicator of using the fiscal space to augment spending.

Though the budget lacked any new and direct initiative to augment housing development and housing finance, the Finance Minister overlaid that 50% of India will live in cities by the year 2047. Thus the GOI retained the focus on Housing development for poor through allocation of Rs. 48 K Crore towards completion of 80 Lakh houses in FY23 and identification of 60 K Houses as PMAY beneficiaries.  Housing Finance related tax sops and affordable housing schemes have remained un-tinkered.

On the other hand the infrastructure development aimed through Gati Shakti project shall provide indirect impetus to housing in the less privileged areas. The GOI announced to bring in ease in implementation of building bye laws along with the state governments for reduction in time required for all land and construction related approvals and for promoting affordable housing for middle class and Economically Weaker Sections in urban areas. Allocation of Rs. 60 K Crore to cover 3.8 Cr households for tap water connection is yet another step towards development of quality living in India.

In this vast housing development, aimed in the budget, lies the scope of HFCs and Lenders to play their role in housing inclusion of India. The GOI announced to work with the financial sector regulators to expand access to capital along with reduction in cost of intermediation. 

Murthy Nagarajan, Head-Fixed Income, Tata Mutual Fund.

“Bond market was assuming net borrowing of Rs 9 to Rs 9.5 Lakh crores and total borrowing program of Rs 12 to Rs 12.75 Lakh crores.  The government has switched short-term papers with longer maturity papers with RBI.  RBI  converted  Rs 1.18 Lakh crores of its holding to longer-term maturities on 31st January 2021. This included Rs 63000 Crores of 2022 maturity converted to long-dated papers. The debt market expected resolution of the tax treatment of bonds to facilitate inclusion in the global bond index. The higher borrowing and no mention of resolution of tax issues for global bond fund inclusion spooked the markets. This budget has not materially reduced the fiscal deficit even though and global background is of rising yields due to higher inflation. The US is expected to raise rates by 4 times in this calendar year and other advanced economies are also expected to raise rates. The market had factored in an orderly hike in interest rates by RBI. Given this high borrowing program, the normalization of rates by RBI to control inflationary pressure is now in question. This may create an anomaly with short-term rates being anchored due to lower rates and high liquidity while the long end of the yield curve reacts to supply pressure in the economy.”

Vinkesh Gulati – President FADA

Union Budget 2022 seeks to lay the foundation for the next 25 years, from India@75 to India@100. With PM’s ‘Gati Shakti National Master Plan’, a Rs 100-lakh crore project for building comprehensive infrastructure in India, it will be a significant step towards path to development. The Budget has attempted to focus on each of the sectors and has also tried to stimulate the economy after the pandemic slowdown. FADA welcomes and supports the Government’s efforts & initiatives towards Electric Mobility. There is a clear emphasis on creative, sustainable & innovative business models. Battery Swapping & Energy as a Service (EAAS) will surely help accelerate the transition towards Clean Mobility. The development of special mobility zones for electric vehicles and promoting clean technology for public transport validate government commitment to E-mobility, which would boost confidence in the EV industry in terms of manufacturing, sales, and create a sense of assurance among customers.

The government’s plans for developing 25,000 kilometers of new highways will result in a push for infrastructure spending, which will result in an increase in Commercial Vehicle sales, as well as an addition of 2,000 kilometers of road under a new scheme known as ‘Kavach’ will be an additional benefit to the revival of this segment. With the extension of the ECLG scheme, it is a remarkable move by the government to support the MSME sector coming out of the slowdown caused by pandemics.

The rural India has generally been the key driver for entry level passenger vehicle segment & 2wheeler space. With government plans on 2.3 lakh crore direct payment as MSP to farmers, it will work as a booster for 2Wheeler, Tractor & entry level PV sector sales. However, an additional duty of rupees 2/ litre on unblended fuel from October 2022, could play a spoilsport for the already stressed 2W industry.

Ashu Kansal, CFO, Addverb Technologies.
“This budget is a welcome move to startups and manufacturing companies who have been given additional time period to fulfill their dreams and avail tax holiday and concessional tax benefits.

Capping of LTCG surcharge to 15% is again a windfall gain to the private sector employees and co-founders who had to earlier shell out an extra surcharge to the extent of 37%. Effectively, this would mean 2-4% gain of income tax on the secondary sale of shares during fundraising.“

Tarun Chugh, MD& CEO, Bajaj Allianz Life

“The overall budget had two positive highlights – one is on the infrastructure push and the other on how systematically the government is prioritizing digitization and building the eco-system. I believe these are the key attributes towards the country’s sustained long-term growth. As an industry, the life insurance sector has systematically played its role in nation-building by leveraging our long-term funds towards infra projects and other similar projects of the nation. The focus of this budget only sharpens this focus for us. Furthermore, the discussion on NPS is also timely as we need to continuously emphasize the need to invest towards post-retirement needs. Irrespective of the customer segment discussed in this budget, I believe through interventions of these kinds on national platforms will only enable many more people to realize the benefits of saving towards their retirement needs. I’m hopeful that the government will enable the life insurance industry to play a greater role in bringing in more people to save towards retirement needs, in the time to come.”

Rakesh Jain, CEO, Reliance General Insurance Co. Ltd

“The General Insurance Industry has played a stellar role in the country’s upliftment and its constituents over the years, particularly during the Covid Pandemic or during a dozen-odd Cyclones/floods that have been hitting our country almost on an annual basis. The industry has provided financial stability to millions of people and establishments, settling claims over Rs. 1.50 Lac Crores each year and growing. The status of the GI Industry is no less than the infrastructure industry as it leads to building many stabilizing foundations in sectors like Healthcare, Automotive, SME, Agriculture apart from risk transfers for Corporate and Individuals. As the Indian economy emerges stronger in years to come, the role of the GI Industry in taking care of unforeseen risks is almost imperative to ensure that disruptions are handled in an organized manner. The abysmal penetration of Insurance vis-à-vis global levels is a clear risk in this journey.

The Budget for the year 2022-23 has laid clear emphasis on the capital outlay, with the capital expenditure proposed to be enhanced to Rs.7.5 lakh crores at 2.9% of the GDP; over a 35% increase than the last year. This is likely to result in the generation of capital assets across the country, with a focus on the infrastructure space. Such assets need to be insured, and the General Insurance industry in India is fully geared up to meet the country’s rising needs. Further, such creation of assets has cascading effects on employment, income, and consumption. It improves an individual’s lifestyle and helps develop both the knowledge and the need to protect the assets and health of the family members through Insurance. This leads to a virtuous cycle for a secular growth of the General Insurance industry. There is also a move to use Surety Bonds, which the Insurance companies may issue under the framework of IRDA, as a substitute for Bank Guarantee in Government procurements and Gold imports. The move recognizes the ability of the Insurance industry to provide alternative products to the Banking sector, thus paving the way to reduce the cost and diversity risk.”

Ronojoy Dutta, Whole Time Director and Chief Executive Officer, IndiGo

Budget 2023 appears to be growth-oriented by an increase in the capital outlay of INR 7.5 Lacs crores, fiscal deficit capped at 6.4% and efforts are being made to reduce compliance burdens and improve ease of doing business. We expect the budget would enable India to achieve a growth estimate of 9.2%. We welcome the new incentives of issuing of E-passport and the introduction of digital currency.

The government’s relentless focus on national transportation infrastructure development with the PM Gatti Shakti plan will strengthen the much-needed multimodal connectivity and facilitate the seamless movement of cargo while reducing logistics costs. Having said that we were expecting tax concession to the Aviation Industry in the form of a cut in ATF excise duty and allocation of concessional finance to airlines to help us come out of the pandemic.

source https://nrinews24x7.com/post-union-budget-reactions/

February 02, 2022