CHENNAI, Feb 1 : “Income Tax slab rationalisation will put more money
in the hands of people and is likely to increase affordability and boost
consumption.
Reacting to the Union Budget presented by Finance Minister Ms Nirmala
Sitharaman, Sundaram Home Finance (SHF) MD D Lakshminarayanan
said increasing exemption for 2 houses as self-occupied is a move to
reduce tax impact and will lead to increased investments including in
housing.
Wheels India MD Srivats Ram said, “Capex at Rs 10.18LCr is a big positive
and will have a multiplier effect both upstream and downstream.
Tackling inverted duty structure benefitting EV, electronics and batteries, the
changes in the income tax slab and exemptions are good initiatives that are
likely to drive demand in the auto sector.”
Hailing the Budget as progressive thinking and a dream budget for the middle
class, Hindustan Chamber of Commerce (HCC) President Linesh Sanatkumar
said the increase in Tax slabs will certainly boost businesses as the consumers
will have more money on hand.
Stating that Infrastructure Development has been given a boost, he also welcomed
the big boost for MSMEs in the budget.
The proposal to increase investment and turnover limits to 2.5 and 2 times respectively
for classification of MSMEs will help enterprises achieve higher efficiency of scale,
technological upgradation and provide better access to capital.
The proposal to improve credit guarantee cover for micro and small enterprises to
Rs 10 crore from the current Rs 5 crore is a positive for the micro and small-scale
sector. The approach of banks must change from collaterized loans to growth-based
loans with this support from the Government.
“This will benefit thousands of MSME companies seeking growth capital”, he said.
The customized credit card scheme of Rs. 5 lakhs for micro enterprises registered
on the Udyam Portal will facilitate ease of doing business and enhance the credit
flow to the micro segment.
Noting that the first-generation entrepreneurs face a huge challenge in mobilization
of finance for their business, he said the Minister’s proposal to grant term loan of
Rs. 2 crore to 5 lakh first time women, SC and ST entrepreneurs is a welcome
scheme.
As MSMEs employ the maximum workmen in the country, the budget proposals will
further provide a fillip to MSMEs and consequently enhance employment generation.
The clamour of the MSME sector to enhance IT benefits for the MSME sector has,
however, not found a voice in this budget.
Although the National mission for renewables may provide support to the EV sector,
the solar panel sector and wind turbines, the plea of the other sectors such as the
biogas sector for further subsidizing fermented organic manure and the wind turbine
sector has not been addressed.
“Overall the budget is balanced and is a positive for MSME sector to achieve their
growth aspirations and create further employment generation”, he said.
“With the thrust on agriculture, the rural entrepreneurs will also benefit from the measures
proposed in the budget”, he added.
In his reaction, Ajay Vij, Senior Country Managing Director, Accenture in India, said the
government’s focus on leveraging technology as a catalyst for growth is key to propelling
India towards its global aspirations, ensuring innovation drives progress and positions
the nation as a leader on the world stage.
The announcements to set up five National Centres of Excellence for skilling, Atal
Tinkering labs to foster innovation, Deeptech Fund of Funds and setting up of the
CoE in AI for Education will create a systematic and progressive movement towards
building future-ready skills needed for an AI economy.
These will not only harness the power of emerging technologies to unlock innovation,
but also drive sustainable growth for the country.
With responsible use of gen AI expected to add an extra USD 675 billion in economic
value to the country by 2038, these measures will help build a future where technology
and human potential go hand in hand, he said.
(UNI)
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