Unveils the Government’s vision for the economy and charts a roadmap for achieving the $3 trillion milestone by 2020.
In an exclusive interview with Republic TV, Sumant Sinha, Chairman and MD of ReNew Power, India’s largest renewable energy company, speaks of clean energy.
he Union budget 2019 aims to carry forward the reforms agenda and consolidate the progress made in the NDA Government’s previous term. It unveils the Government’s vision for the economy and charts a roadmap for achieving the $3 trillion milestone by 2020. It is a forward looking Budget that seeks to address the core issues of slackening growth, liquidity crunch and unemployment through a wise mix of allocations and policy tweaks.
Here are the top ten positives to emerge from the Budget:
The focus on infrastructure is welcome as more highways and roads, dedicated freight corridors, wider Metro network, upgraded ports and affordable aviation will boost connectivity and incentivize investors by raising their competitiveness. This coupled with the expected surge in affordable housing has the potential to create much needed jobs.
The decision to relax FDI limits in sectors like aviation, media and insurance intermediaries, easing of local sourcing norms in single brand retail and streamlining of KYC norms for FPIs recognizes the need for injection of foreign capital. The proposed annual global investors meet and the decision to invite global bids for manufacturing in areas like solar cells, batteries is also a step in the right direction. The Credit Guarantee Enhancement Corporation and enablers for IFSCs will also boost investment.
There is a refreshing focus on transforming the rural economy through more roads, better agri-infra, Farmer Producer Organizations, focus on fisheries and incubators that will create 75,000 skilled entrepreneurs in agro-rural industries.
The Budget stresses on guaranteeing basic amenities. Affordable Housing for All with access to clean cooking gas, water and electricity has been rightly accorded a priority status. The additional deduction of Rs. 1.5 lakhs on interest on affordable housing loans will somewhat revive the real estate sector. The pension scheme for small shop owners reinforces the Government’s vision to widen a social safety net for the most needy.
The decision to allocate Rs 70,000 cr. for recapitalization of PSU banks is timely booster and will ensure economic activity is not disrupted. Financially sound NBFCs will also now get funding from banks thus enhancing liquidity.
The One-Nation-One-Grid idea underlines the Government’s commitment to universal and affordable electrification. It is also heartening to note the focus on restoring the operational and financial health of discoms. The EV sector will welcome the lower GST and enhanced deduction on loans for purchasing such cars.
A higher disinvestment target of Rs. 105000 crores indicates the Government’s commitment to exit loss making PSUs and raise funds to fund development without pressurizing public finances.
The New Educational Policy and National Research Fund will galvanize the spirit of innovation, raise standards of higher education, refresh the curriculum and also equip the youth with new skills and knowledge that will enhance their employability.
And last but not the least, the Government’s steps to encourage woman entrepreneurs through wider financing options must be lauded. This is one step towards woman led development instead of woman centric development.
On the taxation front, the Budget has rationalized corporate tax rate which will allow for an investible surplus. Similarly, there are several tax reforms aiming to encourage start-ups and make the process of filing returns smoother and less daunting.
Source: ET Energy World