Raymond MD Gautam Singhania welcomes 'forward-looking' Budget; hails textiles & MSME moves

Welcoming the Union Budget 2021-22, Chairman & Managing Director of Raymond Limited Gautam Singhania stated that the new budget would 'give a fillip to ease of doing business,' opining that it would help 'revive demand and elevate economic growth.'

"The first digital and post-pandemic annual budget exercise has attempted to boost growth, revive investment and give a fillip to ease of doing business. It is a forward-looking document aiming to revive demand and elevate economic growth. The higher budget allocation for the health sector is on expected lines," he said.

"The increased outlay on infrastructure, an impetus to divestment and privatisation of public sector banks are steps that augur well for the growth and employment generation. The tax holiday extension by one year for affordable housing projects is expected to provide the much-needed boost to the realty sector. We welcome the move to set up textile parks, doubling of allocation for MSMEs which will make the country globally competitive manufacturing and exporting hub," he added.

Gautam Singhania also remarked that the Union budget would 'reinvigorate' human capital through its focus on strengthening schools and skilling youth. "Reinvigorating of human capital through the strengthening of schools, skilling of youth and setting up of 100 Sainik schools are welcome steps keeping in mind our young population," he said.

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Union Budget 2021

Union Finance Minister Nirmala Sitharaman presented the Annual Budget in Parliament on Monday - India's first paperless budget, focusing on six pillars under 'Aatmanirbhar Bharat' - Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D and Minimum Govt., Maximum Governance.

In the first post-COVID budget, FM Sitharaman allocated a whopping 2.83 lakh crores - a 137% hike for the Health sector, introducing a Centre-sponsored Health system - PM Aatmanirbhar Swasth Yojana with an outlay of Rs 64,180 crores over 6 years in addition to the National Health Mission.

Other major points of focus in this year's budget are the 'National Monetization Pipeline' which covered key state assets to be monetized, strategic disinvestment of several PSUs, increased FDI limit from 49% to 74%, disinvestment, infrastructure, agriculture, fiscal deficit, and direct taxes.

To do specifically with the points that most appealed to Gautam Singhania, Rs 15,700 crores has been allocated for the MSME sector, in what can be seen as a massive boost to domestic production. Moreover, the Finance Minister has stated that an alternate debt resolution mechanism and a special framework will also be introduced for the MSMEs. "We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year," said Sitharaman. The government has also proposed to reduce the margin money requirement from 25% to 15% for startups.

Meanwhile, under the second pillar of Physical and Financial capital and infrastructure, the Finance Minister has announced that a scheme of Mega Investment Textile Parks will be launched soon under which 7 textile parks will be set up over the next 3 years. "This will create a world-class infrastructure with plug and play facilities to enable create global champions in exports," the FM announced.

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While discussing the budget, Prime Minister Narendra Modi remarked how the budget been presented amid 'unprecedented circumstances' and showcased India's confidence to the world. "We have taken the approach of widening new opportunities for growth, new openings for our youth, a new high to human resources, develop new regions for infrastructure, walking towards technology and bring new reforms with this Budget," PM Narendra Modi said. 

Read: Budget 2021: From 6 Pillars To Direct & Indirect Tax, Everything FM Sitharaman Announced