Interim budget 2019: Experts say budget will be a boost for manufacturing sector

The Federation of Associations in Maharashtra welcomed the interim budget. It has stated that it is a superb budget for all people in general.

HIGHLIGHTS

  • Federation of Associations in Maharashtra director said there is welfare for all
  • Chief executive officer of LIC Mutual Fund called budget positive for consumption and rural economy
  • Managing director of Greenply Industries Limited said budget will be a boost for manufacturing sector

The business houses in Mumbai have expressed mixed reactions on the interim budget tabled on Friday (February 1) by interim Finance Minister Piyush Goyal.

The Federation of Associations in Maharashtra (FAM) has welcomed the interim budget. It has stated that it is a superb budget for all people in general.

“There is welfare for all. The benefits given to the real estate sector will indirectly help the timber market as our sales are mainly related to sale of flats and offices,” the FAM spokesperson said.

Raghvendra Nath, managing director of Ladderup Wealth Management said the government has tried to cover all the people, especially farmers who were in a lot of distress and discontent, so by announcing an assured income for farmers would help to take a sting out of their distress.

“This has been one of the biggest benefits. The cosmetic change in the income tax slab from Rs 2.5 lakh to Rs 5 lakh will send a positive message to the middle-class voters. From the equity stand point, there will be more income in the hands of people which would lead to more consumption and hence resulting in benefits to the economy,” Raghvendra Nath said.

Raj Kumar, chief executive officer of LIC Mutual Fund called the budget positive for consumption and rural economy.

“The taxation measures will fuel consumption and increase the top line of companies. However, there is slippage in fiscal deficit and likely increase in borrowings may have bearing on bond market,” Raj Kumar said.

K John Baby, CEO of Funskool India Limited, said, “The budget does not provide any impetus for manufacturing sector to create more employment.”

Ganesh Kumar Gupta, president of Federation of Indian Export Organisations (FIEO) said direct income support to farmers at the rate of Rs. 6,000 per year and the mega Pension Yojana for unorganised sector workers at the rate of Rs 3,000 per month would meet the objective of social justice, which coupled with Ayushman Bharat, will provide modest livelihood to our people in poor strata of the society.

“Creation of a separate Department of Fisheries will put further focus on marine exports which has already crossed over USD 7 billion to move to USD 10 billion by 2020-21,” Ganesh Kumar Gupta said.

Rajesh Mittal, Managing Director of Greenply Industries Limited, said the budget will be a boost for manufacturing sector.

“In the manufacturing sector, a tax rate of 25 per cent for new manufacturing units will give a great boost to capital investments and the thrust in the budget on real estate and housing sector. Giving money in the hands of the people will boost all round consumption. After the budget I am even more bullish on the Indian economy,” Rajesh Mittal said.

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