By Gaurav Chopra
The maiden Budget presented by Finance Minister Nirmala Sitharaman holds great promise for the Indian start-up Inc. I am particularly enthused by Government’s following decisions:
Measures to revive the NBFC sector:
Allowing Foreign Institutional and Portfolio Investors to invest in debt securities offered by non-banking financial companies (NBFC).
The decisions for provisioning a one-time six-month partial credit guarantee to PSBs for first loss up to 10% for the purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 Lakh crore and enabling liquidity access to fundamentally sound NBFCs by ensuring funding from banks and mutual funds. These steps will help ease the liquidity in the market and will aid the smaller and mid-size NBFCs to get the much-needed credit support.
Announcement to setup a dedicated TV programme on DD exclusively for the Start-ups:
This move is welcomed by the overall start-up Inc as this dedicated programme will provide a medium to the emerging start-ups to connect directly with venture capitalists and will help understand and work on solving the issues faced by the start-ups in the country. Government’s intent and dedication to promote start-ups is clear through this move.
Providing Public Sector Banks Rs. 70,000 crore to boost capital and improve credit:
Indian banking sector has been affected with bad loans that have risen off late. This move will give banks some breathing room and help improve confidence in the market. Infusing fresh capital in PSBs is imperative for the overall growth of the NBFC ecosystem, as NBFCs depend on banks for their capital needs. This move will help get lending back on track while stimulating growth across sectors.
By Vinay Bagri
Finance Minister Nirmala Sitharaman has presented a pragmatic budget with positive objectives for long-term growth. The first full Budget by the new government is banking heavily on growth to ensure inclusive and sustained development. It has a lot of key takeaways, particularly for the MSME, affordable housing and start-up sectors. Few of the welcome initiatives are as follows:
Union Budget 2019 | Get the live news updates, views & analysis here
(The authors of this article are the Founder & CEO of IndiaLends and the Co-founder & CEO of NiYO respectively)