Here is what Indian industry representatives have to say about the Budget 2020-21
Appended is the Budget Quote by Mr. Vinay Pandit, Head- Institutional Equities, IndiaNivesh
“3.6 lac crore approved for piped water to all households will be positive for pipe infrastructure companies such as Ratnamani Metals, Man Industries amongst others.”
“Electronics manufacturing industry – needs a boost – scheme focused on encouraging the manufacture of mobile phones, electronic equipment, and semiconductor manufacturing as well as medical devices bid positive for companies such as Dixon Technologies, Amber Enterprises, Subros.”
“Need to focus on commercialization of highways – propose to monetize 12 blocks of highway bundles before 2024″ – positive for IRB Infra.”
“Propose to expand national gas grid from 16200 km to 27000 km ” …. positive for companies namely IGL, MGL, and Gujarat Gas.”
Budget Quote by Mr. Manoj Jain, Director & Head of Commodities, IndiaNivesh
“The government provides a blueprint for revitalizing growth of Real India through various incentivization schemes related to agriculture, healthcare, and education. The government has remained firm on its commitment to doubling farmers’ income by 2022 and has formulated concrete plans under its 16-point agenda to boost farmers’ income.
The plan of enabling farmers to set up 20 lakh solar pumps is a step in the right direction to infuse self-sufficiency in meeting energy needs in farming.
Thrust on development on setting warehouses, working on sustainable crop pattern, ensuring efficient use of fertilizer to reduce excessive use of pesticide and fertilizer, encouraging use of bio-fertilizer are measures to ensure healthy crop production, Addressing the growing water problem was the need of the hour, which the government also addresses through its comprehensive plans for 100 water deficit districts.
I also congratulate the FM for pioneering ideas for promoting agriculture exports with initiatives such as the Kisan Rail and Kisan Udan scheme. Integrating warehouse receipts will with e-NAM widen financing avenues for farmers’ produce.
The proposal to provide Rs 15 lac crore as Kisan credit will also provide relief to farmers.
The target of doubling Milk production by 2025 will encourage dairy farming and cattle rearing practices on an industrial level.
Focus on rural infrastructure development and doubling of hospitals will enable rural Indians access to quality healthcare. The news is a big positive for cement manufacturers and companies like NBCC.”
Budget quote by Aksh Vashishth, Analyst, IndiaNivesh
“Allocated 1480cr for National Technical Textiles Mission with 4yr implementation period. The mission will focus on the support of domestic and export market development of technical textiles. The technical textiles industry is diversified with sub-categories like agro-textiles, clothing textiles, Mobil-tech (textiles used in automotive), packaging textiles, sports textiles, etc, the largest segment being Mobil-tech”. Aksh Vashishth, Analyst, IndiaNivesh
Budget Quote by Mr. Harit Shah, Sr. Analyst- Information technology, IndiaNivesh
“Government to come out with a policy to promote data center parks for development of big data technologies. The important aspect needs to be the focus on skills development in these technologies, given that IT firms face a shortage of digital talent.
Long term, the move could potentially benefit all IT firms including TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra, along with mid-sized firms like LTI, Mindtree, Persistent, and Hexaware, among others, given the incremental focus on growing their digital businesses.”
Mr. Vikas Jain, Senior Research Analyst, Reliance Securities says
“National Infra pipeline to remain in focus for the development of various projects. Key infra players like LT, KNR will benefit. FMCG Index rallies off its 100 DMA Emami, Hindustan Unilever, Dabur, Tata Global are set to rally further”.
Quote of Mr. Kunal Sanghavi, Chief Financial Officer at Metropolitan Stock Exchange
So far, the Budget has nothing extraordinary in it in terms of addressing the most pressing issue for the nation, which is of an economic slowdown. This indicates we will continue to see more pains on the economic front.
However, the most interesting part is the long-term measures for building an economic superpower. The proposals and the related fund allocations on developing infrastructure, educational universities, Express roads, and data parks, along with the expansion of the BharatNet scheme will define New India. The stress on incentivizing the setting of Datacenters will eliminate the country’s dependence on global agencies.
The continued focus on Fintech and analytical technology will also address the concerns of employability and skill development required to keep pace with the development of new technologies. The stress in the Budget is clearly on incentivizing new initiatives against maintaining the old and existing schemes. This is a growth-oriented portfolio and a sign of successful allocation.
The privatization of ports and listing on stock exchanges will improve their efficiency and promote investments in port development. This move, in turn, will foster imports and exports and promote trade and commerce. We see a lot more emphasis on privatization, fundraising, and listing by the government which will boost the stock.
Appended below is the Quote by Mr. Rustom Kerawalla, Chairman, Ampersand Group
“The honorable Finance Minister has tried to address many facets of the educational sector in her budget. The overall allocation of Rs 99,300 crore for education is very essential to ensure that India emerges as the educational capital of the world. The aspirations of a new India which has the highest number of youngsters seeking education in the world requires a concerted effort towards providing the right kind of education in order to harness the demographic dividend going forward.”
“There is a clear emphasis on public-private partnership and opening up the ECB and FDI routes by easing the norms for the sector will be a good enabler for the sector.”
“The ‘Study in India’ program opens doors for students from Asia and Africa to India and the setting up of full-fledged online degree-level institutions will help in the democratization of education across all levels of society, especially those from the lower economic classes.”
“The setting up of 150 higher education institutions for apprenticeship diploma will be a good move to ensure employable talent from within the country.”