Post Budget Reactions – India Inc Sees Growth Revival and Job Creation with Budget 2021

Post Budget Reactions – India Inc Sees Growth Revival and Job Creation with Budget 2021

Post Budget Reactions


Karthikeyan Natarajan, President and Chief Operating Officer, Cyient – Coming out of the pandemic year, the Finance Minister has laid down a well-rounded Budget.  Focus on setting up of Fintech Hub at Gift City, enhancing digital payments and use of AI in governance – all provide a strong platform for Digital India. Allocation of Rs 50,000 crore towards National Research Foundation will work towards boosting India’s Innovation Quotient on the global map and is a welcome move. Allocation of funds as incentives for promoting digital payments is also a step in the right direction and a significant step in ease of doing business. Lastly, increase in allocation for highways and railways will lead to employment generation and boost the economic growth of the nation.
Rajiv Bhalla, MD, Barco India – The budget is a major step in the right direction. It outlays a strong focus on infrastructure, healthcare, capital spending, disinvestment, monetization, job creation and digitization. These measures are not only progressive and recovery-led, if implemented correctly would ease the burden on the economy and lead India towards the projected v-shaped growth and development. The budget talks about structural reforms in banking, enhancing debt financing and credit limits for businesses and asset monetization. This will lead to an increase in government spending, which, in turn will spur demand, therefore net positive for the industry. The several initiatives around job-creation, startups, reskilling, rural development and better quality of services to people are positive as a Nation cannot progress without care for the environment and inclusive all-round transformation.


Suraj Malik, Partner, BDO India (M&A)- “Budget 2021 constructively impact the lives of common man with targeted proposals for extending social security benefits to gig economy, tax concessions on affordable housing and rental housing, simplified compliance regime for start-ups and exemption to senior citizens from tax filings.  Stability in tax regime, simplification in compliance procedures along with consolidation of laws will provide a strong foundation to the six pillars for achieving economic growth”.


Real Estate

Neetish Sarda, Founder, Smartworks, – “Hon’ble FM’s vision for Atmanirbhar Bharat with a budget focused on six essential pillars is commendable. The government has set an ambitious target to build infrastructure in the country and increase focus on digitisation and public investments. The proposal to exempt dividend payments on REITs and InVITs from TDS will surely boost investor sentiment thus augmenting funds for infra and real estate sectors. Initiatives to boost the Indian startup ecosystem by incentivising the setting up of One Person Companies (OPCs), announcing tax holidays and an extension in capital gains exemption are welcome steps.”

Prashant Solomon, MD, Chintels India and Hon. Treasurer- CREDAI NCR – Finance Minister has presented a forward looking Budget that is aimed at generating investments and reigniting the growth cycle. The government’s big bet on infrastructure is bound to pay off in the long term and bring in growth for real estate and allied sectors.  Giving flexibility to REITs to raise more debt capital will attract more investment in the real estate sector and will lead to faster closure of transactions. The decision to extend tax holiday for affordable housing projects is a step in the right direction and will help realise Prime Minister’s dream of ‘Housing For All by 2022’.

Women Entrepreneur& Start-up

Jahnabi Phookan, National President, FICCI FLO- “The budget proposed by Finance Minister will help to boost the revival of our nation’s economy following the Covid induced Economic Fallout. With its targeted proposals for extending benefits to the women in form of policies such as Mega Investments Textiles Park, Incentivising one-person companies, Implementation of the four labour codes, dedicating 3000 crore to NATS, proposal of funds for the welfare of tea workers especially the women & children in Assam & West Bengal, It will provide a strong foundation for the female strata to rise and support in building an Atmanirbhar Bharat”.

Shammi Pant, Co-Founder, – This budget reinforces the focus on the fundamentals with intent to revive the economy from the unprecedented pandemic setback of last year.  In a major way it focuses on Health, Infrastructure and further rationalization of our financial regulations, which is going to give the economy an impetus in revival and put the focus back on fundamentals. The startup community welcomes the attention given in Budget speech of the Finance Ministry and we thank for announcements regarding Tax Holidays and Capital Gain Exemptions.”

Romira Roy, Founder and Chairperson – SEED- “The six-pack budget proposed by the Finance Minister encompasses the true spirit of sustainable and equal growth. The push for the health sector and the skilling space with tie-ups with UAE and Japan, to begin with, will go a long way. The focus on revamping the health infrastructure, the push for aggressive disinvestment with LIC’s IPOs, Tax holiday for start-up, expansion & strengthening of nameless faceless IT along with the revision of years are something to be applauded. Although tax slab revisions & further involvement of the private sector in the COVID vaccination distribution is something that could have also been looked at. Overall it was a well-balanced budget given the fiscal deficit constraints”

Rishi Ahuja, Founder, Klip VR Immersive Tech- “It’s heartening to see the focus on Education in Finance Minister’s budget speech where she rightly said youth of the country have abundant skills and it needs proper channelization. This year will be historic and motivational for our youth with events like 75th Year of Independence and Chandrayaan Mission 3. The education budget and steps announced for effective implementation of National Education Policy, increased focus on the role of technology will provide further opportunities for growth and sustained development of the sector and students. Rishi Ahuja, Klip VR Immersive Tech”


Mr. Sharad Malhotra, President – Automotive Refinishes and Wood Coatings, Nippon Paint India – With an expansionary Budget that focuses on growth, the Finance Minister has delivered on major counts. The Budget has announced a massive infrastructure boost with huge outlay for Railways and privatizing airports. Along with this, measures that will increase consumer spending and make India more self-reliant are a step in the right direct. Fitness testing for both PVs and CVs is a positive move that will not only generate employment opportunities but also ensure a cleaner environment. Our sector has got a favorable boost in form of FM’s voluntary vehicle scrappage policy announcement.

Mr. Harsha Kadam, CEO Schaeffler India and President Industrial Business
This budget has the ingredients to deliver long term growth. The government is bullish on public spending and we are encouraged by it. We were certain that Budget 2021 would surely consider the gloom that hovered over the Indian auto industry and it is reassuring to see that it did. The infrastructure boost will surely benefit the heavy and medium commercial vehicle segment, which was much needed. The voluntary scrappage policy implementation is surely a step in the right direction keeping in mind the environment and auto industry at large. We have been awaiting it for a while and this is a step forward for sure. In fact, the announcement regarding the PLI scheme investments is going to play an accelerator for the manufacturing sector, which has seen really tough times along with the auto industry. This gives reason for double celebration as it will encourage global manufacturing firms and also provide incentives for local manufacturing firms to expand. This is a huge step in terms of creating jobs and opportunities for the youth. This budget has been very progressive for the railways as well, an important sector for us. The decision of commissioning dedicated freight corridors which will not only improve the overall movement of goods but also spur economic activities in the long run. The continued push for investment in railway with the additional allocation towards MetroLite and MetroNeo for smaller cities for bodes well in the long run. The only caution here is to look at the inflating fiscal deficit. Overall, the budget provides an opportunity for the state and the central governments to come together and rebuild for the future and we must seize these opportunities for future growth.


Mr Arun Pandey, Chairman & MD, Rhiti Group – “The Union Budget 2021-2022 laid major impetus on unlocking our nation’s true potential by introducing schemes such as providing financial incentives to promote digital transactions, providing incentives to one-person companies, allocating resources for the revival of the MSME sector, setting up of Central University in Leh, allotment of 3000 cr to NATS, etc. These initiatives will help to foster the Start-up Industry, MSME sector, education sector & help in the overall development of the nation. Through this budget, the Finance Minister was able to address each & every aspect of the economy”


Farhan Pettiwala, Executive Director & Head Development, India & South Asia, Akhand Jyoti Eye Hospital (AJEH)– We expected a bigger change and disruptive budget, indeed the budget has Kickstarted by increasing investment in Infra, healthcare, ARC (assett management company), LIC IPO disinvestment, no change in tax structure, INR 64,180 crore to new health scheme is a big plus, with 35,000cr for covid vaccine.

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