Union Budget 2019-20

by Shrutee K/DNS

The 2019-20 Union Budget presented by Finance Minister Mrs Nirmala Sitharaman in the Parliament is a non-populist no-frills yet matter-of-fact budget with emphasis on strengthening policy framework and system-based governance. The budget is on the direction of the vision set by the 10 point agenda of the government and the PM for a bright, stable, new India.

IMC Chamber of Commerce and Industry welcomes the balanced focus of the budget as a blue print to making India economic powerhouse. The pump priming of  the agriculture and infrastructure and boosting the industry, the three sectors with potential for job creation and raising the consumption levels.  Structural reforms in rural India have received specific attention. In addition to increased focus women in SHGs through overdraft facilities and of Rs 1 lakh under Mudra loans for rural startups, and lifting rural economy. The thrust on rural FPOs, drinking water availability, water conservation, providing rural housing with sanitation, electricity and gas ( Ujjawala ) to each rural household is a positive intent.  Benefit to farmers by expanding e-NAM and the zero based budgeting to help doubling farmer’s income by 2022. The tax incentives for affordable housing are welcome. 

The proposed humungous investments (Rs 100 lakh crore over next 5 years ) for infrastructure development – railways, rural and other roads, airports, water, multi-modal transport and tariff restructuring package for power and one nation – one grid concept  – is sure to be a shot in the arm for the infrastructure sector that finds itself inadequate to meet the growing demands of the economy. It will have several spin-off benefits.

IMC also welcomes the huge thrust being made towards the digitization of the payment mechanism and the digital technology initiatives in robot, AI, IoT etc in the economy. IMC also appreciates the proposal for developing corporate bond market, setting up of a long term funding institution, norms to be eased for FDI, FPI, angel investors, single brand retail sector,  is a positive development, addressing the issue in liquidity by raising foreign borrowing, guarantee by PSB banks to quality NBFCs, the new concept of Study in India and the grants of Rs 400 crores to higher education. IMC welcomes the policy initiatives in rental housing , initiatives in labor laws while keeping the labors protected, the tax incentives for EVs  to arrest climate deterioration. The interest subvention in GST for MSMEs is welcome step.

IMC welcomes expansion of corporate tax rate of 25% to incude companies upto Rs 400 crore turnover. Overall the Chamber welcomes the budget is an excellent intent document  towards further strengthening the reform process, bringing about more transparency and laying a solid foundation for GDP growth rates of 8.0% for a $5 Tn economy.

About IMC: Set up in 1907, IMC is an apex Chamber of trade & commerce with headquarter in Mumbai. It has about 2700 direct members, comprising a cross section of the business community, including public and private limited companies and over 215 trade and industry associations through which the Chamber reaches out to over 2,50,000 business establishments in the country. IMC is the first Chamber in India to get ISO 9002-2000 certification which has since been upgraded to ISO 9001: 2008. IMC is the only business Chamber in India where, the Father of the Nation, Mahatma Gandhi, was associated as an honorary member.