“A dynamic and brilliant stimulus package from the Finance Ministry. Every item is a dynamic recession fighting salvo. On the supply side, the credit enhancing Rs. 70,000 crore infusion for PSUs and efficiency enhancements on GST for MSMEs, and on the demand side, lowering of rates for housing and automobile loans, tax cuts on short and long term capital gains, as well as removal of surcharges on FPIs, combine to provide a blockbuster of a stimulus package. The fillip to entrepreneurship via the removal of the angel tax and the upcoming steps towards developing the bond market are the icing on the cake for a landmark and historic step from the Finance Ministry. We expect the market to applaud and the economy to surge to the point where India re-establishes itself as one of the leading growth stories of the World. We have long been advocating that the need of the hour is coordination between the Finance Ministry and the RBI. The development of the bond market and the joint development of the CDS market are the answer to this need. The financial sector, and indeed, the nation will remember this landmark pronouncement with gratitude.”, said Ranjan Chakravarty, Product Strategy at Metropolitan Stock Exchange.
“The Finance Minister has announced a slew of measures that will go a long way in addressing the expectations of investors and equally importantly, improving consumer confidence. We expect the market to gap up on Monday morning, and the process of restoration of growth via reforms is underway. These measures will go a long way in reassuring investors of a pro-growth agenda. In large part, financial markets sold off on a disappointing budget. Investors will draw comfort from the measures announced today and the process for growth recovery has started.”, said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
“Acuité believes that the government has responded well to the domestic demand slowdown and the increasing headwinds in the global and domestic economic landscape. The measures such as accelerated depreciation benefits and government’s decision to replace its own vehicle fleet augur well for the automotive sector. Steps are being taken to address the structural challenges in the monetary transmission and lending eco-system through proposed linkage of repo and lending rates, immediate infusion of the Rs. 70,000 Cr budgeted capital commitment for public sector banks and setting up a strong credit enhancement mechanism for infrastructure projects. Specific timelines for GST refunds to MSMEs, monitoring the government department payments to contractors and enhanced liquidity support for HFCs will offset the funding squeeze in these sectors. Importantly, the decision to reverse the additional surcharge will be a significant relief to the foreign investors and is expected to arrest the increased outflows.”, Suman Chowdhury, President-ratings at Acuité Ratings and Research.
"Speeding up GST refunds and streamlining the MSME Act are welcome steps and should give some impetus to the MSME sector. Faster tax refunds have been a long-standing request from the sector, and we are glad the government is acting on it. To further spur demand, we would like to see increased government procurement from MSMEs.", Pushkar Mukewar, Co-Founder and Co-CEO of Drip Capital, a US & India based trade finance firm.
“Taking cognizance of the distressed position of NBFCs, today’s announcement and assurances by Hon’ble Finance Minister is much appreciated for bringing the transparency. The measures which includes more liquidity of 20000 crore through NHB, pushing disbursement to NBFC under partial credit enhancement, and pushing banks to start co- origination which will solve the problem of requirement of credit lines by NBFC to a great extent. These steps will certainly provide the much-needed respite to the markets and address the incumbent growth concerns through boosting aggregate demand. It is evident that the slew of measures adopted by the government time to time shows the approachable impetus to enhance the credit flow to NBFC. Additionally, assurance of repo rate benefits to reach customer sooner is a big relief on the borrower.”, said Rajesh Sharma, Managing Director, Capri Global Capital Limited.
“This will bring in the era of Neo-banking in India. Now the relationship between Bank and FinTechs will deepen - wherein FinTech, hopefully, will be able to convince banks to offer customised products or, possibly through partnerships, have a frictionless journey so as to cover majority of customers with instant loan kind of products. This is definitely going to be game changer in retail loan segment.”, said Satyam Kumar, CEO & Co-founder LoanTap