The upcoming Union Budget should include provisions that continue the good work done by the government in the last few months and create funding opportunities, believes Subir Kumar Chowdhury, MD & CEO, JCB India. Chowdhury praised the Modi government for taking the required steps last year to revive growth. He said that announcements in infrastructure spends and a reduction in Corporate tax rates were quite important.
“Revival of demand is important at this stage and the Government has been cognizant of this. It has been taking steps to revive growth. Noteworthy being the significant announcements in Infrastructure spends and a reduction in Corporate tax rates. Additionally, the Reserve Bank supported through improved liquidity and lowering of interest rates,” he said.
Chowdhury added that developing infrastructure is important for the growth of any economy and the recent announcement of Rs 100 Lakh Crores investment in Infrastructure over the next five years is a welcome move as it comes at a time when the Industry has built capacity and capability over the years, and parts of which have remained underutilized in the immediate past.
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“It is also heartening that the announced Infra spends are in projects that are spread across power, renewables, roads, railways and urban development and will help create more growth drivers for our Industry. The investment cycle needs to re-instated, and large infrastructure projects are vital to achieve that,” he said.
“Thus, it is critical that the upcoming budget keeps the momentum going and creates funding opportunities to be able to see this allocation through. Energizing the PPP (Public Private Partnership) model and a re-look at asset re-monetization can play an important role in addressing funding related constraints. NBFCs will continue to play an important part for financing our equipment and thus the regulatory framework for NBFC growth will also be essential,” Chowdhury added.
The Union Budget 2020 will be presented by Finance Minister Nirmala Sitharaman in the Parliament on February 1.