Post Budget quotes by Shriram Group

1 Feb 2022 , 10:45 PM

Post-Budget, industry-specific views by Shriram Group:

Umesh Revankar, VC and MD, Shriram Transport Finance

The Union Budget 2022 is bold and growth-oriented that will have a multiplier effect on the economy and benefit the ‘aam aadmi’, despite no direct benefit transfers. We believe the FM has presented an investment-led budget and this will propel sectors like cement, steel and construction which will lead to increased movement of goods, boost bulk transportation movement and help in the revival of the transport industry.  The government widening the ECLGS scheme & revamping CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises) are steps taken to accelerate growth and reduce stress particularly in the MSME segment. Housing project allocation of Rs 48000 crore is likely to boost growth momentum for the building materials sectors and real estate activities in general. We believe the budget is a very forward-looking one with an emphasis on digital economy and reducing carbon footprint, which will benefit digital lending and lead to environment-friendly policies going ahead for the vehicle sector. Ease of doing business has taken centre stage as the Government has committed to a long term growth of over 8% for the next 3 years. India economy is now well placed and we are optimistic about credit uptake in the economy

YS Chakravarti, MD & CEO, Shriram City Union Finance

The Union Budget 2022 is a capex driven budget with a slew of measures across sectors, leaving no stone unturned. Given the challenging circumstances, it’s a bold budget, a growth-oriented budget that will result in a multiplier effect and benefits to all. The extension and widening of the ECLGS scheme & revamped CGTMSE will aid recovery of the hardest hit MSMEs. The battery swapping policy is a positive measure for electric vehicles (EVs) which will give a boost to the sector and lending to the clean energy segment. Housing project allocation of Rs 48,000 crore will give a flip to affordable housing and to the specific affordable home loan segment. As part of the digital push, digital banking has been encouraged, this will assist the overall development of digital infrastructure and enable greater participation in digital lending. NARCL has commenced operations that will assist banks to reduce their bad loans and lead to provisioning write-back. Credit growth is likely to be propelled higher given the capex push, infra spends, higher housing allocation, urban policy, and reduced carbon footprint linked policies. More direct employment measures were however missing, but it’s been a balancing act, well maneuvered.
 
Ravi Subramanian, MD & CEO, Shriram Housing Finance

Budget 2022 is focused on growth. It aims to pull the Indian economy out of the COVID-led challenges. The government acknowledged the need of the hour and has walked the talk with its infrastructure-spending plan. The 35% increase in capital expenditure will boost systemic credit and ease funding access across sectors.

The government has continued its thrust on the housing sector with an allocation of Rs 48,000 crore under the PMAY scheme to expand access to affordable home funding. Measures such as fast-tracking land and construction-related approvals and processes, and digitisation of land records will also greatly benefit the housing and real estate ecosystem.

The Finance Minister today announced setting up a committee for urban sector policy and capacity building, with a focus on mass transit systems and public transport in urban areas. The critical focus on urban development and planning, and facilitating development of tier-2 and tier-3 cities is a timely move in the right direction to deal with the expected challenges of increased urbanization and urban housing.

Anil Aggarwal, MD & CEO, Shriram General Insurance

The Finance Minister today announced a capex-led Budget, with equal focus on both economic growth and welfare programmes. The COVID-19 pandemic has highlighted the need for increased insurance penetration in the country, and the industry was looking for some measures to boost the same. However, in line with the Budget theme of creating a roadmap for future growth, the government has taken a more holistic view and focused on broader economic growth across sectors.

Extension of the Emergency Credit Line Guarantee Scheme will help MSMEs deal with the challenges posed by the pandemic. Further, measures focused on rural development such as setting up a programme to boost MSME performance and ensuring mobile and broadband services in rural areas will help increase awareness and access to financial services. This will give a significant fillip to rural insurance, which is the need of the hour, by bringing more people into the financial services ecosystem.

The government today also announced the rationalization of TDS provisions for insurance agents, wherein it allowed a tax deduction for benefits extended to insurance agents, if the aggregate value of such benefits exceeds Rs 20,000 during the year.

Casparus J H Kromhout, MD & CEO, Shriram Life Insurance

Budget 2022 is a roadmap for economic recovery, with a focus on capital expenditure and spending by the government, both for economic growth and welfare programmes. On a broader front, the government has chosen to build on the Budget from the previous year and focus more on overall growth and fiscal stimulus across sectors.

The government has provided some welcome relief to specific sets of insurance customers in terms of allowing the payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians; thus allowing insurers to be able to provide more value to these customers.

However, the life insurance industry was also expecting some measures from the Budget to boost insurance penetration especially in the aftermath of the COVID-19 pandemic; where the importance of financial protection and security has been highlighted like never before especially for the vulnerable segments of the society.

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com