In the realm of M&A, Rajesh Narain Gupta, Founder and Chairman of SNG & Partners, Advocates & Solicitors, commends the reformative nature of the budget with a strong emphasis on sectors such as Agriculture, Rural, SSME, BFS Sector, Investments, hospitality, housing, payment systems, and financial inclusion. He acknowledges the introduction of infrastructure bonds and pension products as positive steps. The message to the Income Tax department to trust first and investigate later is seen as a new approach. Gupta also highlights the proposed simplification of M&A procedures and the intention to decriminalize over 100 provisions in various laws as a welcome move.
In the MSME sector, Dhruv Chopra, Managing Partner at Dewan PN Chopra, applauds the proposal to transform post offices into logistics hubs for entrepreneurs, women, and micro and MSME businesses. This initiative is seen as a way to optimize India’s extensive postal network for economic growth. Additionally, the increase in funds allocated to support startups in 27 focus sectors and the creation of a DeepTech Fund are viewed as positive steps to promote innovation and research in the country.
On the taxation front, Parveen Kumar, Partner – Direct Tax at Dewan P N Chopra & Co, highlights the forthcoming introduction of a new Income Tax Bill aimed at simplifying tax compliance and enhancing readability. The emphasis on faceless assessment, taxpayer charter, and faster processing of returns is also noted as measures to improve taxpayer convenience. The proposal to decriminalize over 100 provisions across existing laws is seen as a step towards boosting the business environment and promoting investment.
In the insurance sector, Dhruv Chopra welcomes the increase in FDI cap from 74% to 100%, which is expected to attract more foreign investments and bolster the insurance industry in India. The exemption of social welfare surcharge on certain tariff items and the full exemption of basic customs duty on life-saving drugs and patient assistance programs are seen as measures to support the healthcare sector and improve access to essential medicines.
The budget also includes provisions to support the manufacturing sector, with a focus on enhancing the competitiveness of non-leather footwear manufacturers through the Focus Product Scheme. The increase in turnover and investment limits for MSME classification, along with the proposal to set up a new Fund of Funds for startups, is expected to encourage growth in these sectors.
The budget announcement also includes measures to promote clean tech manufacturing in the EV sector, support domestic manufacturing through rationalization of customs tariff structure, and streamline customs processes for increased export competitiveness. The introduction of a National Centre for Skilling with international collaboration is seen as a positive step to bridge the skills gap and support advanced manufacturing technologies in India.
Overall, the budget is lauded for its focus on economic reforms, ease of doing business, and support for key sectors such as MSMEs, startups, and manufacturing. The proposed measures are expected to stimulate growth, promote innovation, and enhance India’s position as a global economic player.
