“The Union Budget 2019 is a step in the right direction as it is a fiscally responsible one with sound policy announcements, striking a balance between rural and urban development. Demonetisation further accelerated digitization and also led to an increased tax base and that has got a further boost in the budget.
The measures announced by the Finance Minister, including the focus on increasing expenditure in rural areas and boosting infrastructure, as well as the moves to improve the tax structure for small corporates, are consistent with the government’s intentions to drive consumption-led growth. SMEs form the bulk of the middle class and employ more than 40 percent of India’s workforce. For a holistic growth of the economy it is essential to bring in reforms in the sector. The capital support, interest subsidy, and reduction of corporate tax for the MSMEs will lead to more job creation and income to households as well as increase in productive capacity and consumption.
In the past year, the real estate sector has witnessed some landmark reformative policies being rolled out by the Government which has made the sector become more transparent and credible. The announcement of establishing a dedicated affordable housing fund under National Housing Bank for priority sector lending and sanctioning the assistance to construct 37 lakh houses under the PMAY shows the focus of government towards making ‘Housing For All’ a reality by 2020 and also gives impetus to the sector. This is very beneficial for ABFL, which is betting big on its SMEs and affordable housing segment and has adopted a robust strategy to strengthen and expand the business further.” - Mr. Rakesh Singh, CEO, Aditya Birla Finance Limited