The Union Budget presented by Finance Minister Nirmala Sitharaman is commendable. She has done a fantastic job by focusing on key themes like agriculture, MSMEs, industry, and exports. Several initiatives have been announced, particularly for MSMEs, which contribute 45% of our exports today. The government’s measures to increase credit limits will hopefully drive more growth for MSMEs in the economy.
The Finance Minister has managed to balance the outlay for different sectors while reducing the fiscal deficit to 4.4% from 4.8% last year, which is commendable and worth examining in more detail. The government’s framework for establishing Global Capability Centres (GCCs) in tier-2 cities is a positive move. This will generate employment and create opportunities in these regions. From an infrastructure perspective, the government’s plan under the UDAAN initiative to set up 120 smaller centers to boost travel and tourism is another great step. It will drive growth in those sectors.
The decision to allow 100% Foreign Direct Investment (FDI) in insurance is a welcome move. The creation of a central repository for KYC is very beneficial. The current KYC and e-KYC processes are cumbersome, as they require interaction with multiple agencies. A centralized system would simplify this significantly.
The reduction in customs duties across various sectors will encourage more domestic manufacturing under the Aatma Nirbhar Bharat initiative. In terms of technology, the announcement of an additional ₹10,000 crore for the deep-tech fund and the extension of the startup exemption for another five years are excellent steps to support startups looking to participate in government programs.
The extension of Category I and II exemptions for AIFs until March 31, 2030, is another positive move that will drive investment and growth in the economy. Finally, making income up to ₹12 lakhs tax-free is a welcome measure. The adoption of the new tax regime and the rationalized tax slabs will increase disposable income for the middle class, driving urban spending, which everyone has been focusing on
About the Author
As Maveric’s CFO, Venkatraman GS (Venky) leads the Finance function, including controllership, treasury, secretarial, and compliance. As part of Maveric’s 4.0 growth journey, Venky plays a critical role in the areas of Investment Planning, Strategic ROI, and creating and administering wealth-sharing initiatives that nurture high-caliber talent.
Article Originally Published in Republic Business
