The decision to regulate non-banking financial institutions by the federal bank and thrust on reducing import bill would augur welcome for the economy, Ganesh Balakrishnan, partner, audit and assurance, Deloitte Haskins & Sells, said on Monday.
Taking part in a post-budget analysis discussion at a programme organised by the Confederation of Indian Industry here, he said regulation of NBFCs, which contribute a lot to the economy, was a wise decision.
He said the increasing dependence on import of crude would complicate current account deposit (CAD) crisis.
The government, he said, had decided to give incentives for using electric vehicles
Mr. Balakrishnan said the crude boil bill increased from 1.8% of GDP in 2017-18 to 2.1% in 2018-19. Though the situation was not alarming, it was better to reduce it further.
Stating that the budget was aimed at stimulating macro fundamentals, he said change in tenancy law, sanctioning more loans to MSMEs, heavy investment in infrastructure and allowing 100% FDI in insurance intermediaries and single brand retail were welcome features. The expert said merging of NRI portfolio scheme route with foreign portfolio investment route and investment of ₹5 trillion in railway infrastructure till 2030 were significant.
He said the entire budget speech reflected a long-term perspective to achieve the goals and lauded the focus on encouraging entrepreneurship by the startups by offering them a slew of incentives.
CII Vizag zone chairman K.V.V. Raju welcomed. Among others, D.V. Manohar, partner, mergers and acquisitions, Deloittee Haskins & Sells LLP, Amit Kumar Fitkariwal, director, tax-indirect taxes, Deloitte Haskins & Sells LLP, G.S. Shiv Kumar, CII-AP former chairman, G.S. Giridharan, CFO, South Asia LPG Compnay, Gaurav Thakkar, CFO, Sarda Metals & Alloys, P.V. Narasimha Rao, convener, CII AP tourism panel, and J. Srinivasa Raju, CII Vizag zonal vice-chairman, spoke.
