Mumbai: It was one of the longest budget speeches yet it was not able to address some of the issues concerning the economy. While India Inc lauds the Finance Minister, Nirmala Sitharaman for having a long-term vision, it is equally disappointed for nothing having any short-term plans.
CII IWN Western Region, Chairperson and Head- Business Development, Kashmira Mewawala, said, "This is a comprehensive budget. FM spoke about long-term infrastructure projects from airports, to museums, to other social infrastructure projects. This will give a fillip to the economy over the long run. We were hoping for some short-term oriented announcement.”
While affordable housing was mentioned, there was no real impetus to the housing sector which is in a slump. Niranjan Hiranandani President (Nation), NAREDCO, said, “Any fiscal measure in sluggish real estate sector could have provided a fillip. Wherein, tax benefits extended to both homebuyers and Developers in affordable housing sector will encourage more launches in this segment.”
K Nandakumar, chairman of the Mumbai-based Chemtrols Industries Ltd, said, “The announcement was more structured no doubt about that but that kick start needed in the economy was missing.” He stated there is a need to have a short-term focus as well while planning a budget. He went on to add the only way to boost the manufacturing sector will be by focusing on MSME (Micro Small Medium Enterprises). “To support the sector, the banks will have to come forward to lend more to these sector. There should be three-four sectoral-based banks.” For the economy to grow, there is a need for more liquidity in the market.
A major employment generation sector, tourism, did not see any direct benefits. Vishal Kamat, CEO of Kamat Hotels, “There is no direct benefits for the sector. But putting more money into the hands of the people is an indirect way to boost tourism. I see some long-term benefits for the sector, but nothing short-term.” For the hospitality sector, taxation especially GST has been a pain point.
It will take at least one year for the initiatives announced in the budget to commence, said, Tata Consulting Engineers Ltd, Chairman, Ashok Sethi. “The focus on real estate could have worked in revival of the sector.”