Budget Insights: Top experts break down real impact of FM’s big moves

Budget Insights: Top experts break down real impact of FM’s big moves

NEW DELHI: As Finance Minister Nirmala Sitharaman unveiled the Union Budget for financial year 2020-21, there were many announcements that were easy to digest and then there were those whose ramifications were not clear immediately. At ETMarkets.com, we had a panel of experts from diverse fields analyzing the real impact of these moves real time.

Here is how they did the hair-splitting of the Budget:

Budget Insights by Manoj Purohit, BDO India

  • “The proposal of providing FPIs an entry into debt financing of REITs and InvITs will open up a large source of fresh funding for infrastructure and real estate sectors. This will also open up a new avenue for FPIs to invest in a growing market like India.”
  • “Increase in FDI limits from 49% to 74% in the insurance sector is a welcome step and will help insurance companies raise funds to ensure their solvency is maintained in line with growing business needs. This will also augment foreign inflows and help attract more foreign companies.”

Budget Insights by Bijal Ajinkya, Khaitan & Co

  • “One-person company will bring a more organized and regulated basis for smaller businesses. Limited liability itself may be a booster for such entrepreneurs.”
  • “GIFT IFSC will boost not only GIFT City but also the securities market.”
  • “With a view to encouraging foreign investment by sovereign funds in infrastructure sector, the conditions imposed will be reduced. A positive boost in the right direction.”

Budget Insights by Siddharth Srivastava, Khaitan & Co

  • “The reduction in reassessment period to 3 years will be seen as a very positive move by global investors and should greatly contribute to the advancement of India in Ease of Doing Business Index.”
  • “One-person company will a big booster for startups.”
  • “Massive uptick in road infra on the expected lines. A lot of activity in this sector is likely in the coming year, including the award of new projects.”
  • “Enhanced debt participation for foreign investors in InVITs and other measures will be a welcome move and will enhance the depth of the debt market in India.”
  • “ARC will be set up to manage bad debt – basically bad bank will now become a reality. It will go a long way in resolving stressed assets in India.”

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