VIA Post budget reaction by renowned industrialists

Keeping with the traditions, Vidarbha Industries Association arranged a Live Telecast of Union Budget on wide screen at VIA Auditorium, which was presented by Hon’ble union Finance Minister, Nirmala Sitharaman. Immediately a post budget reaction was given by renowned industrialists after Union Budget viz.

Hakimuddin Ali, Dalmia Bharat Cement on “Infrastructure”

Overall emphasis on digitization and IT enablement. Overall capex increase from 5.7 to 7.5 lakh Crore will be a big boost to Infra Build. Gati Shakti Scheme seems to be a good initiative to promote and integrate transport, Highways & Rails, Cargoes. Focus on affordable Housing is good, 48000 Crs specific initiative for promotion of recycled waste in cement like Fly Ash, Slag Usage would have been better. However, looks to be better than the expected budget.

Anand Sancheti, SMS Limited on “Budget Overview”;

This is a no surprise budget. CAPEX is planned and support is also given to states for CAPEX, which is a relief to states affected due to COVID. Growth oriented, Rural focus, towards Aatma Nirbhar Bharat and support to manufacturing sector specific +/- was there, but this budget will have a multiplier effect LTCG @15% is also welcome.

Ish Mohan Garg, Imerys India & Calderys, South West Asia on “Impact on Industry”;

A very balanced budget with focus on boosting infrastructure, rural economy, ease of doing business, digitalization, Atma-Nirbhar Bharat, overall sustainability drive, huge capex outlay and simplifying both Direct and Indirect Taxes.

Focus on Education, Skill Building and e-enabling.

Overall an industry friendly specially MSME friendly budget towards speeding up the growth of the country.

Vaibhav Kashikar, Ankur Seeds Pvt Ltd on “Agro”

·         Very promising as infra development is going to help Agri produce.

·         Start-up is going to help introduction of AI & ML in Agri.

·         Zero Budget framing needs to be revived, practically looks tough.

·         Less chemical farming sounds more logical – Agri SEZ

·         FPO’s going to redefine agri sector if audited / managed well.

·         Dairy – Agro forestry is good boost.

Vishal Agrawal, RC Plasto Tanks & Pipes on “Packaging”;

PM Gati Shakti – 7 engines help to Vidarbha’s Logistics, Roadways Multimodel, connectivity

Jal to Ghar develops 3.8 Cr. Household

PM Awas Yojna builds 80000 houses.

7.5 lakh capital expenditure.

75% Payment within 10 days by Government.

Mayur Zanwar, TruScholar on “Start-Up & IT”;

·         Start up in drone manufacturing, Defence, Fintech and Block chain Adoption.

·         Foundation of digital rupee on blockchain tech will be a game changer in the long run.

·         3 years exemption for start-up formed prior to 31.2.22 extended by one more year.

·         API will be shared in startup eco-system.

·         Defence allocation 68% will give a big boost to start-ups specially for AI, IOT, ML.

·         Digital currency, 75 Digital Bank, digit health records will big support to startups setup.

·         Taxation on Crypto clear, NFT and digital assets is now made clear. Ambiguity resolved.

·         Surety Bond & 75% clear of bill to Govt Sector will reduce the working capital blockage of start-ups.

Dr Tejinder Singh Rawal, TS Rawal & Co on “Economies”;

Some of the proposals are far reaching. MSME portal revamp is welcome. E-vidya is a desired focus area. Post Office digitization is important. Capex increase is welcome. However more focus was needed on MSME’s, urban poor, informal economy, salary earners. Healthcare and Education expected higher allocation and to review animal spirit in the economy. More focus was needed on increasing private consumption.

CA Rajesh Loya, Loya Bagri & Co on “Direct Tax”

Reducing surcharge for certain categories, Reduction of alternate taxes for Coop, extending dates for start-ups and new manufacturing entities is appreciable.

But – what is missing

·         Rationalisation of TDS & TCS provisions were much needed.

·         Provision for determining Premium on shares, valuation of property at the time of purchase & sale

·         Relaxation on the rates of penalty

·         Advance Tax above Rs.10,000/- since 2009.

Atul Pande, Immd Past President – VIA

·         ECLGS extended upto March 2023 is prudent move for SME’s.

·         Start-ups encouraged in Agro Sectors is a welcome initiative.

·         Vast Post Offices Infrastructure being revamped for optimum utilization.

·         Thrust on “Ease of doing business”, provided it is perceived to be providing relief to target audience.

·         68% of Defense sourcing shall boost Indian industry.

·         GST collection in Jan 2022 Rs.1.4 lac crs is encouraging.

Ashok Chandak, Chairman – VIA Taxation & Corporate Forum

Growth oriented budget. It will boost Rural & Agriculture Sector, MSME and Domestic Defense Sector . More ‘Vande Bharat Trains and more allocation towards Infrastructure, Concept of Digital Rupee and Digital Banks is very good. So also anywhere registration is good. However, deficit of 6.4% of GDP is matter of concern. Though there is mention about innovative mode of financing for infra projects, nothing is spelt out about it.

Prashant Mohota, former Vice President – VIA on “Textile sector”

A very placid budget where not much has been done in the textile sector. Particularly there was a huge expectation of reduction in custom duty on cotton whose prices have become more than double in last one year. Also since ATUFS is expected to end in March 2023,  there was expectation that the new scheme would be announced in the budget so that the MSME’s can carry out their textile upgradation programs. This scheme is vitally important for Indian companies to remain competitive by technological upgradation in a timely manner. Also fail to understand,  Why provision of 9000 cr for CCI cotton procurement is made again in a year when there would hardly be any Cotton Procurement under MSP Operation. These funds could have been easily put to better use.

Some positives can be reduction in Custom Duties on certain accessories for Garmenting operation &   overall economic buoyancy in GST tax collection which augurs well for many capital expenditure programs Govt has envisaged, which surely will spur growth

Girish Deodhar, Chairman – VIA MSME Forum on “MSME Sector”

·         ECLGS Scheme extended to 31-03-2023 from 3 Lac to 5 Lac crores with additional funds of 50000 crs for Hospitality and related sectors.

·         Railways to develop projects for MSME Sector.

·         Promotion of start-ups in Drone Manufacturing.

·         Product Linked Incentives for high efficiency modules in Solar Power Sector.

·         80 IAC date for startup extended to 31-03-2023.

·         115 BAB date increased for new manufacturing cos to 31-03-2024.

Dr Anita Rao, Jt Secretary – VIA

Definitely a growth oriented Budget. The thrust on ‘Gati Shakti’ master plan and the ‘Kavach’ initiative is going to be great for the overall growth of the economy. The benefits for women Entrepreneurs though net spelt out are :

·         Extending the ECLCS upto March 23

·         Railway Projects for MSME may help for WE

·         Repelling 186 compliance

·        Amrit Kal Ease of Doing Business Policy which is for trust based governance and removal of overlapping compliance

·         Extending tax incentive for start-up by one more year till 31.03.2023.

CA Poonam Khandelwal, Past Chairperson – VIA Entrepreneurship Forum

·         High Capex – High Growth

·         Focus on Atmanirbhar Bharat

·         Shift to digital economy – Digital Rupee – a

·         LTCG / STCG few changes were expected for

·         Angle Investors (no mention)

·         Startup Industry – Expert Committee for PE & VC to determine future course of action for taxations for Angle Investor, AIFS, M&A, IPO, etc.