Tuesday

16


July , 2019
Union Budget 2019-20: Industry Reactions
17:39 pm

B.E. Bureau


Real estate: Jones Lang LaSalle Incorporated (JLL)

Ramesh Nair, CEO and Country Head, JLL India

With an objective to help buyers in the affordable and mid-housing segments, an additional exemption of `1.5 lakh on interest paid on housing loan, over and above the existing `2 lakh, has been provided for properties up to ` 45 lakh. This will significantly benefit first-time home buyers who will enjoy the benefits of interest subvention under the CLSS scheme and the announced tax benefits. With effective interest coming down, it will increase the eligibility for the mid-income housing segments. In a bid to improve supply, Budget 2019 has proposed to open up land parcels of government and PSUs to be utilised for affordable housing and public infrastructure.

Sumadhura Group

Madhusudhan G., Chairman and MD

The additional tax deductions on home loans for self-occupied house owners and tax reliefs on interest paid are can boost sales in the affordable sector. The proposed Model Tenancy Law aims at bringing momentum in the rental-housing sector. The partial credit guarantee to the Public Sector Banks (PSBs) addressed the crucial NBFC liquidity issue. Besides this, the government’s decision to increase investment allowance of Foreign Portfolio Investors (FPI) in REITs will spur the flow of funds in the industry. Although issues like single window clearance and Input Tax Credits (ITC) benefits in GST weren’t addressed, multiple pro-industry reforms majorly outweigh the few misses.

ANAROCK Property Consultants

Anuj Puri, Chairman

As far as real estate is concerned, infra-structure stayed at the top of the government’s agenda. This is of course significant, since infrastructure development is one of the main propellers for economic growth and real estate benefits both directly and indirectly. The government announced major tax benefits that will help stimulate demand for affordable housing, which can help to attract first-time homebuyers. The budget did not meet many expectations as it failed to address the sector’s most pressing concerns. The all-important ‘industry status’ remained elusive, taxes were not sufficiently moderated and land reforms were not mentioned at all.

Stainless Steel: Indian Stainless Steel Development Association (ISSDA)

K.K. Pahuja, President

The domestic stainless-steel industry was expecting a higher level of protection in form of increased Basic Customs Duty (BCD) on imports of stainless-steel finished products from 7.5% to 12.5%, at par with carbon steel. This step would have translated into a major step to not only safeguard the domestic stainless-steel industry but will also be stimulating production growth, as India is a currently a soft spot for dumping. BCD on stainless-steel semi-finished products under HS code 7218 has been raised to 7.5% from 5%. This barely changes the scenario as there is little import of these semi-finished stainless-steel products in the country. Most of the import is in stainless steel flat products, where imports market share is as high as 20% and needs protection.

Non-Banking Financial Institution (NBFC) :

Paisalo Digital Limited

Santanu Agarwal, Chief Innovation

Officer (CIO)

The Union Budget 2019 boosted  consumption, expenditure and introduced tax breaks with the aim of encouraging investment and get the economy on track to achieve $5 trillion mark. With this view, the government will be recapitalising public sector banks with ` 700 billion capital infusion, to offset the liquidity crunch they have been facing. We think some part of the funds will be retained by banks for their own fund management and some part of it will be made available for lending purposes to promote growth and development of the financial private sector companies including systemically important non deposit taking NBFCs.

Healthcare: Medica Hospitals Pvt. Ltd.

Dr. Alok Roy, Chairman

 

We appreciate the government for displaying commitment and concern towards improve-ment in public healthcare aiming to create a healthy India, with comprehensive wellness derived environment for all. Rural health hygiene has definitely improved. Citizens are expected to be less vulnerable to communicable diseases in open defecation free villages. The deduction limit for medical insurance that has been increased from ` 15,000 to ` 25,000 and for senior citizens it is ` 50,000 and this will augur well.  The industry was intently looking forward for further announcements regarding Ayushman Bharat taking the right partnership approach to a more inclusive participation. Some relief on imported medical equipment could have been provided, which would have benefitted the sector.

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