NE BUSINESS BUREAU
NEW DELHI/CHENNAI/AHMEDABAD, FEB 2
Commenting on the Union Budget presented by the Finance Minister Nirmala Sitharaman on Tuesday, banking, fiaance, start-up, auto sector captains lauded FM’s bold and progressive moves.
Commenting on the Union Budget, Rajkiran Rai G, MD and CEO, Union Bank of India said, “The Budget 2022-23 is set in context of recovering 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 welcome enabler for credit to vulnerable sectors of economy. Moreover, the absence of capital allocation for public sector banks reaffirms confidence in strength of banking sector in meeting the credit needs of economy. Overall, it is a growth oriented Budget.”
Welcoming the booster dose for automobile sector, Venkatram Mamillapalle, Country CEO & Managing Director – Renault India said, “We welcome the Union Budget 2022, which spells seamless growth for the Auto & Auto Ancillary industry in India. The government’s focus on ‘Aatmanirbharta’ will continue to provide impetus to build domestic capacities and push the agenda of ‘Vocal for Local’. The government’s focus on Battery Swapping policy to be brought with inter-operability standards and push for clean tech and electric vehicles will create the right ambient environment for EV introduction and overall harmonisation of the electric mobility aspiration of the nation. This move will prove to a giant leap for the nation in advocating introduction of cleaner propulsion technologies and will improve air quality and reduce consumption of conventional fossil fuels.
The government has laid emphasis for the development of the infrastructure within the country that will further help build capacities for the resurgence of the automotive sector in India and envisages Rs 20K Crore investment outlay in infrastructure projects, under the auspices of PM’s Gati Shakti that focuses on 7 engines of growth, including building the road transport network in the country. The National Highways network will be expanded by 25,000 km in 2022-23. Better roads will have a certain positive impact on the automotive sector. Finally, the government’s decision of strengthening the rural economy through a MSP payment of Rs 2.73 lakh crore along with other benefits with an objective of aiding the farming sector, will help increase the disposable income, improving the sentiment in rural areas and further improving the demand & aspirations of rural and semi-urban markets of India for personal mobility.”
Rajesh Sharma, Managing Director, Capri Global Capital Ltd said, “We welcome the growth-centric Budget aimed at securing India’s long-term economic interest. The union budget 2022-23 announced by the honorable finance minister has shown a progressive and development-oriented focus for infrastructure and MSME. Extension of Emergency Credit Line Guarantee Scheme by another year to March 2023 and coverage increment of 50,000 crores will give the necessary impetus and act as a key enabler to empower the MSME businesses at the grassroots. The announced measure will have a domino effect on the sector as well as provide a cushion to create an engine of economic growth. The interlinkage of various portals for MSMEs will bring the masses who require the necessary thrust and foster an environment where India becomes integral to global demand. We believe the government will accelerate the task to implement the measures efficiently and rapidly for desired outcomes.
Additionally, the allocation of Rs 48, 000 crores for Pradhan Mantri Awas Yojana will fuel the vision of Housing for All and de-bottleneck issues surrounding the affordable housing segment. The announced measure will have a force multiplier for ancillary sectors to generate more opportunities.”
Industry veterans from Startups & Crypto sectors bat for FM’s bold moves
Bibin Babu, Co-founder, MetaSpace, said, “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 commented that “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 the potential of it, leading to more blockchain innovations. Yet another step towards positive crypto regulations and taxation clarity. ”
Abhay Aggarwal, Founder & CEO, Colexion opined that “Cryptocurrency seems to have caught the government’s attention after FM recognised 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, said, “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.”
