Industry reacts to the new budget

Food, PD Minister lauds the Union Budget

The Union Budget 2019-20 seems to have fallen short of meeting the industry’s expectations. The industry had been looking forward to fiscal stimulus to spur economic growth and lead to a resurgence of the rural economy. However, those big, bold steps are missing.

Finance Minister Nirmala Sitharaman has announced a series of long-term initiatives that would help improve overall consumer sentiments in the hinterland and put more disposable income in the pockets of the urban consuming class. The slew of announcements for rural India include zero-budget farming and helping farmers get a fair price for their produce, besides ensuring access to safe and adequate water for all rural households by 2024. These, coupled with the fast pace of road construction and upgradation of over 1.25 lakh km of rural roads over the next 5 years, would significantly improve rural connectivity and give companies easier access to rural markets. These are certainly steps in the right direction and will go a long way in improving the standards of living in the hinterland.

The Budget proposal to increase by Rs 1.50 lakh the deduction that can be claimed for interest paid on home loans taken for affordable housing is a positive for the urban Middle Class and would translate to more money in their pockets. However, the decision to hike duty on Petrol and Diesel is also an area of concern as it may fuel inflation.

Overall, I feel, it’s a mixed Budget. The government has certainly set an ambitious target of growing India into a $5 trillion economy by 2024-25, but the big, bold structural reforms needed to create an enabling framework are missing.

Mohit Malhotra, CEO, Dabur India

 

A great move by the government on the Angel Tax. Startups can now focus on growth and innovation without having to worry about being dragged into such complications. For a very long period, there has been a huge gap between the skill set required by the Industry and what was being provided through the colleges of our country. It was a much-needed push which the government is now taking, to improve skills of youth in technology areas like AI and Big Data.

Samarth Setia, CEO & Co-Founder, Mr Milkman

 

The Union Budget 2019-20 comes with a strong assurance to boost education, agriculture and other social sectors and will serve to be an efficient medium of country’s development journey. The comprehensive 10-dimensional Vision for the Decade, in particular, is commendable and we are certain that it will play a crucial role in the nation’s pursuit of Global Developmental Goals.

As the implementing partner of the Mid-Day Meal (MDM) Scheme, the Government’s initiative to bring children closer to school, we look forward to the New National Education Policy that seeks to reform schools and higher education through better governance. In doing this, the policy will ensure that children are equipped with the necessary skills and knowledge to carve a better future for themselves and at the same time, contribute to the nation’s socioeconomic development.

We also welcome the move to converge the Jal Jeevan Mission with other Central and State Government Schemes to provide access to safe drinking water to all. This move will serve to boost various Government initiatives aimed at nutrition welfare and make a strong case for the convergence of welfare schemes to maximize their impact.

With respect to the role of women’s participation in our progress as a nation, we appreciate the Government’s introduction of various programmes to support and encourage women entrepreneurship.

As the implementing partner of the MDM programme, we are committed to supporting the various initiatives aimed at the well-being and development of children and will continue to extend our services by providing safe, hygienic, nutritious, and quality meals to our beneficiaries.

Chanchalapathi Dasa, Vice-Chairman, The Akshaya Patra Foundation

 

The government is targeting to make India a $5 trillion economy in the next 5 years or so, and it is great to see that they have emphasized on the high growth areas of start-ups and SMEs. Some of the biggest benefits that would boost the morale of start-up founders is the removal of scrutiny related to Angel Tax on the companies that complete all their necessary paperwork. Fundraising will be boosted through the elimination of IT scrutiny and measures like e-KYC of potential foreign investors will also prove beneficial to start-ups. Emphasis on skill development by imparting training in advanced tech like AI, Big Data, VR, Robotics, etc. will make our workforce competent at a global level. The budget is definitely a great step forward for the SMEs in India.

Ambarish Ghosh, Founder and Director, The Hillcart Tales

 

The overall emphasis of the Budget is to develop infrastructure, energize investments, strengthening rural sector and empower women. The focus on Gaon, Garib and Kisan would augur well in addressing the rural distress and providing succor to the rural populace. The various schemes announced by the Hon’ble Finance Minister like Pradhan Mantri Matsya Sampada Yojana, cluster-based rural industrialisation for promoting 50,000 artisans, 75000 skilled agri entrepreneurs, overall focus on dairy sector, developing 10000 FPOs and zero budget farming are all very laudable.

On FPO: Majority of the farmers, who are unorganised, small and marginal, fail to get due value for their produce. NABARD has been propagating collectivisation of farmers through FPOs as it allows them to get collective bargaining power in buying agri inputs and selling their produce. The Budget proposal of setting up 10000 FPOs is a path-breaking step to ensure economies of scale for farmers.

On Zero Budget Farming: The government’s proposal to revive zero budget farming is a well-thought-out plan that would help millions of famers cut down input cost and practise sustainable agriculture. NABARD has been supporting sustainable agriculture through tribal development and watershed development programmes. This initiative will help mitigate the rural distress to a great extent.

Dr. H K Bhanwala, Chairman, NABARD