India Inc. on Friday cheered the slew of measures announced by the government said the interventions will shore up confidence and revive the animal spirits in the economy that had started showing signs of a deep slowdown.
“The most important announcement was the removal of the surcharge on FPI & DI profits. Because this was strong evidence of a listening capacity and the humility to course-correct. More than anything else, that should regenerate spirits,” Mahindra Group Chairman Anand Mahindra tweeted.
Finance Minister Nirmala Sitharaman today announced a slew of measures to support the stressed automobile sector and front-load recapitalisation of public sector banks in order to revive some crucial parts of the economy. The government, however, stayed away from any large fiscal stimulus given the limited headroom it has.
Mahindra added that holding a press conference and announcing a slew of measures instead of a “trickle of tweaks” was smart communication. It garnered global attention and signalled government's recognition of the gravity of the situation and an intent to reignite sentiment and growth, he said.
Confederation of Indian Industry Director General Chandrajit Banerjee said the “excellent package” would help the economy to leapfrog to the next level.
Jaguar Land Rover India Ltd. President and Managing Director Rohit Suri said, “While the increased depreciation from 15 percent to 30 percent and deferment of increased registration fees till June 2020 will have a positive impact, moderation of goods and services tax base rate from 28 percent to 18 percent for all categories as being requested by the auto industry for sometime now would have been the real demand stimulant!”
Associated Chambers of Commerce and Industry of India President BK Goenka said it is clear that the government is concerned with current economic situation and added that the industry will respond very enthusiastically to these praiseworthy moves.
Federation of Indian Chambers of Commerce and Industry President Sandip Somany said the measures will give a major boost to the economy that had started showing signs of a deep slowdown. As these measures take effect, we are sure that these will lift the confidence of businesses and investors alike, he added.
“We thank Finance Minister Nirmala Sitharaman for announcing key measures which will give a boost to demand, industrial and overall growth of the Indian economy. Eagerly waiting for the Housing industry announcements,” Confederation of Real Estate Developers Association of India Chairman Jaxay Shah tweeted.
PNB Housing Finance Managing Director Sanjaya Gupta said the measures will support growth and ease liquidity crunch in the housing finance sector.
Economists and experts too said the announcements made by the government will have a positive impact on the economy.
MS Mani, Partner at Deloitte India said expediting GST refunds would significantly benefit businesses having refunds in improving their working capital in the short term.
“Removal of angel tax will go a long way in building trust and confidence in the startups and the investors, and shows government's resolve towards ease of doing business in India and encourage entrepreneurship,” Vikas Vasal, Partner & National Leader Tax, Grant Thornton India LLP said.
“The slacking economy and the slump in various sectors including automobiles, housing and MSMEs was a grave concern not just for industry stakeholders but also for the government,” ANAROCK Property Consultants Chairman Anuj Puri said.
“In a major boost to the slowing economy that comes literally in the nick of time, the finance minister today has hit a sixer with a slew of announcements for the banking and financial sector including non-bank financial companies, housing finance companies and even MSMEs,” Puri said.
“The removal of higher surcharge on capital gains will not apply to AIFs which deal in derivative securities where the characterisation of income is business income,” Bhavin Shah, Partner & Leader, FS Tax, PricewaterhouseCoopers India said.
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