Budget Reaction Quote - By Sudhish Ramteke Senior Vice President Anand Rathi Insurance Brokers Ltd.

?Overall a very good growth oriented budget addressing all the major concerns to kick start and support the recovery of Indian Economy. The undertone of Union Budget 2021 was  Government?s focus on Ease of doing business in India. The Government?s decision to increase the FDI limit in the insurance sector from 49% to 74% is a much awaited industry request . This will help attract greater foreign investment in India and strengthen the insurance sector . The government will launch a new federal health scheme with an outlay of around INR 641 billion  ($8.80 billion) over the next six years . A robust capex push of INR 5.54 trillion rupees ($75.76 billion) is  very positive. This, combined with the enhanced spending on the health sector, will go a long way in supporting Indian economic recovery.

The Finance minister also reiterated that tax systems to be transparent, efficient and shall promote investments in our country. The tax rates, surcharge, cess etc. have been left untouched and even the much debated Covid Cess was not brought out. This brings stability and certainty to the tax framework and is  definitely a very positive move. The consolidation of securities laws, existing decriminalisation of offences under the Companies Act and the proposed decriminalisation under the LLP Act marks an important move towards making Indian corporate legal framework simpler, business friendly and ultimately (hopefully) reducing compliance costs. To address concerns around asset quality, credit loss and liquidity stress, this budget has been proactive to infuse additional capital of INR 200 billion to PSU banks for providing continued credit access to wholesale and retail borrowers, and therefore push growth agenda.?