UNION BUDGET 2019
10 B2BPurchase
• The country requires`20 lakh crore
worth investment per year.
• Government would restructure highways
and the movement of cargo through the
River Ganga.
• Proposal to improve railway
infrastructure through the public-private
partnership model as Rs 50 lakh crore of
investment would be required over the
years for the purpose.
• Pradhan Mantri Gram SadakYojana:
Phase 3 envisaged to upgrade 1.25 lakh
km of road length at an estimated cost of
`80,250 crore.
• Bharatmala, with an investment of
`80,250 crore to build 1,25,000 km of
village roads.
• Government targets for raising funds by
disinvestment to`1,05,000 crore in the
Budget of 2019-20, up from`90,000 crore
in the interim budget in February.Highlights
`July 2019and infrastructure industry, the Budget 2019-
is—progressive and inclusive. “Budget is a mega
investment-oriented initiative with a strong focus on
scaling up rural infrastructure and demand along with
slew of tax simplification measures, aimed at boosting
growth, maintaining high level of fiscal discipline,” noted
ASSOCHAM President B K Goenka.Moreover, the increase in Budget outlay for defence,
infrastructure development including roads, railways,
power and affordable housing is expected to elevate
the demand for construction equipment as well as
machines. “Machine tool industry needs to gear up to
the opportunities that are likely to rise in future. Vibrant
manufacturing is imperative for India’s growth. The
incentives announced in the budget are but a beginning,”
said V Anbu, Secretary, Director General & CEO IMTMA.The Budget has come as a mixed bag for the real
estate sector at a time when the industry is showing
signs of revival. Sanjay Dutt, MD & CEO, Tata Realty
& Infrastructure Ltd, said that the availability of land
belonging to CPSEs and central ministries to public
infrastructure and affordable housing is expected
to provide the much-needed impetus to the housing
demand. “The allowance of FIIs and FPIs to subscribe to
REITs and INVITs would lead to an influx of investment
in the cash strapped sector. The government’s assurance
to provide one-time credit guarantee for the first loss
up to 10 per cent for purchase of high rates pooled
assets of financially sound NBFCs will further help the
cause,” said Dutt.Vipin Sondhi, MD and CEO, JCB India Ltd noted that
this Budget is about India’s long term vision. It addresses
the many factors required for India to become a $ 5 trillion
economy in the next few years. It aims at building India’s
capability across sectors. Vital amongst them is the creation
of Social Infrastructure which would thus lead to an
improvement in the ease of living. Moreover, it addresses
the aspect of electric mobility as well and intends to create
an ecosystem for it to scale up. The budget touched upon
the importance of growth for MSMEs to improve exports
through innovation. “With infrastructure growth being
vital to achieve all of the above, a revival of the PPP,
structural reforms in asset monetisation and a notable
provision for infrastructure with improved liquidity over
the next few years is welcome,” said Sondhi.There is also a visible push for new age technologies
and digital solutions as the Budget specifically mentioned
the importance given to artificial intelligence, internet
of things, big data and digital India – which is an integral
part of the long term vision. With an eye to boost up
the economic growth and Make in India, the proposal
to launch a scheme to invite global companies to set up
mega-manufacturing plants is laudable. “All in all, it is
encouraging to see the government’s continued focus
on the programs- UJALA, Saubhagya and UDAY Yojana
as key initiatives to the nation’s economic growth, with
an even greater focus on digitisation to boost the rural
economy,” said Anil Chaudhry, Zone President & MD,
Schneider Electric-India. In the end, Budget 19-20 will
count as an opportunity for all, willing to ride the $ 5
trillion economy-class bus heading for New India. n