Budget 2020 aims at needs of the industry: Dun & Bradstreet India

By Manish Sinha

“The Union Budget of 2020-21 has tried to address the aspirations of various parts of the ‘New Economy’ ranging from the agriculture sector to the requirement of Industry 4.0. It aims at the needs of the industry, markets and the common man alike. Out of the many positives, we find five that are notable. First, the upcoming policy to enable private sector to build ‘Data Centre’ parks and create a ‘National Mission on Quantum Technologies and Applications’ would help accelerate the pace of adopting Industry 4.0. Second, enabling NBFCs to extend invoice financing to MSMEs and launching app-based invoice financing loans will boost supply chain finance penetration in India and help create credit history data. Third, the enhanced focus on improving the logistic sector and supply chain, especially in the agriculture sector, will address the disconnect between high agriculture output and low farmer income due to supply chain bottlenecks. Fourth, the disinvestment in LIC and tax exemption to tap on investment from sovereign wealth funds will help in mobilization of funds for infrastructure investment. And finally, the increase in deposit insurance amount to Rs 5 lakh from Rs 1 lakh initially will address depositors’ concerns.

On the concern areas, the disinvestment target for FY21 is an all time high. This needs to be managed carefully as government has already missed the target for current year. Further, the measures outlined in the budget have not clearly addressed the slowdown in consumption demand. It is not certain whether the tax benefits to corporates would be directed towards reduction in debt levels or would be reinvested in capex.”

Manish Sinha, Managing Director – India, Dun & Bradstreet India