Norwegian Business Association India


NBAI had conducted session on Union Budgets on 10th July 2019 in Mumbai for its members, speakers from BDO LLB Mr Pranay Bhatia –Partner Tax &   Regulatory Services & Mr Sandeep Pareek Associate Partner Indirect tax spoke on this year’s budget.

The explained the following  pointers :

  • Budget discussion focussed on direct and indirect taxes.
  • The budget was the backdrop of the overwhelming mandate Modi received for a second term.
  • Development of agriculture and rural economy received significant attention in the Budget.
  • Budget also touched upon several important issues such as start-ups, resolution of NPAs, attracting  investments and driving up consumption.
  • PSU disinvestment target of 1.05 trillion was a good step.
  • Proposal to amend some aspects of labour laws to be a step towards ease of business
  • Several sectors like aviation, media and insurance sectors could gain with further liberalisation of FDI rules.
  • Infrastructure spending (100 trillion) would spur growth and revive economy.
  • 700 billion infusion in PSU  banks could bring some liquidity back in the market and boost investments.
  • Increasing public shareholding from 25% to 35% could have significant impact India Inc.. Companies may either have to offload a significant part of their shareholding or private by buying back its shares to conform to the new rules. There were concerns among the companies on the new ruling given the complex nature of the issue.
  • India was on course to becoming a USD 3 Trillion economy by the end of the current financial year (2020) and touch USD 5 Trillion over the next few years.
  • Recovery of NPAs – INR 4 Trillion in 4 years- was commendable.
  • Restricting fiscal deficit at 3.3% of the GDP was another example of good economic management.
  • 97% per cent of the publicly listed companies benefited from reduction of reduction of corporate tax from 30% to 25%. This could boost liquidity for companies.

The above sessions will be held in Bengaluru on 15th July & in Delhi on the 17th July 2019.

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