Heena Sharma Blog

I don’t think the Budget proposals have an element of a big-bang surprise. That said, there is a bit of positive news for the non-bank finance companies (NBFCs), but nothing that is making me too excited. The divestment figure of Rs 1.05 trillion is quite huge and is a lot of stock to be sold via this route in financial year 2019 – 20 (FY20). There are some proposals for the rural markets and thrust on the infrastructure sectors, besides rejig in the public shareholder norms. This will see a lot of stock come into the market over time, but there are benefits of foreign direct investment (FDI) and foreign portfolio investment (FPI). But overall, there is nothing in the proposals that excites me too much. The budget proposes a recapitalisation of public sector banks to the tune of Rs 70,000 crore. I was hoping that the government privatises some banks ahead of such a move. I am a bit disappointed that this is small money and whether it will solve the problems that most of these...

Finance Minister Nirmala Sitharaman Friday announced a slew of measures in her maiden Budget 2019-20 speech in the Parliament today. Among key announcement, Sitharaman said the government will launch an inter-opearable ATM-like One Nation One Card for pan-India travel, new rental laws for affordable housing, interest subvention scheme for MSMEs and women. Here's what Finance Minister Nirmala Sitharaman said in her Budget 2019 speech: The recent election which brought us to this august House today, was charged with brimming hope and desire for a bright and stable New India. Like never before, India celebrated its democracy by coming out to vote in large numbers, like never before. Voter turnout was the highest at 67.9%. Every section – young, old, first time voters, voters since the first General Election, women – all turned up to stamp their approval of a performing Government. Through their unambiguous and firm mandate they have reaffirmed “putting the nation first”....

Finance Minister Nirmala Sitharaman on Friday said the time is right to consider increasing minimum public shareholding from 25 per cent to 35 per cent. Presenting her maiden Union Budget, Sitharaman said the government has already written to Sebi regarding the matter. She also said Electronic Fundraising Platform, a social stock exchange, will be set up to list social enterprises and voluntary organisations working for social welfare objectives. Stressing that the government keeps villages, the poor and farmers at centrestage in every programme, she said every single rural family, except those unwilling to take connection, will have an electricity, LPG connection by 2022. She also said time taken to complete construction of houses under Pradhan Mantri Awas Yojana has been cut to 114 days from 314 days in 2015-16 due to use of Direct Benefit Transfer platform and technology. Read More Article Source -> Business Standard

Finance Minister Nirmala Sitharaman on Friday said that the country is well within its capacity to become a $5 dollar economy in the next five years. Budget 2019 highlights: Here are the key takeaways from finance minister Nirmala Sitharaman's maiden Budget speech: From $1.85 trillion in 2014, the economy has reached $2.7 trillion We are well within our capacity to reach $5 trillion in the next few years Economy will grow to become a $3 trillion economy in the current year itself Between 2014 and 2019, we provided a rejuvenated centre-state dynamics, cooperative federalism, GST council and strident commitment to fiscal discipline Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly Upfront incentives on purchase of electric vehicles, greater emphasis on affordable and eco-friendly public transport Private players to play a significant role in railways One N...

Setting a new precedent Union Finance Minister Nirmala Sitharaman on Friday was seen hugging the budget documents wrapped in a red cloth, the traditional 'bahi khaata' way, instead of the leather briefcase that until now her predecessors walked around with. Chief Economic Advisor K. Subramanian said that it was a departure from "slavery of western tradition". The red cloth symbolises the 'bahi khaata' traditionally used in every Indian business set up to maintain accounts. Sitharaman was seen carrying the red cloth wrapped budget papers that was neatly bound with the auspicious yellow and red ribbon. The Lion Capital shone brightly on top of the bahi khaata, as the first-time Finance Minister walked out of the North Block. Traditionally until now all former Finance Ministers have carried their Budget Document in a hardbound leather briefcase that takes after the parallel British custom -- much like many of India's laws and Parliamentary practic...

Economic Survey for 2018-19 was tabled in the Lok Sabha on Thursday, a day ahead of the presentation of the Union Budget for 2019-20. The Survey, which is the government’s report card for the year gone by and presents the health of the economy, comes at a time when the economy is slowing and consumption has staggered. As per data released a few days ago, India's GDP growth came in at 5.8 per cent for the January – March quarter, sharply down from 6.6 per cent in the previous quarter, well below forecasts and the slowest in over four years. The revised fiscal glide path, as per the Survey released on Thursday, envisages achieving fiscal deficit of 3 per cent of GDP by FY 2020-21 and central government debt to 40 per cent of GDP by 2024-25. The Survey notes the Medium Term Fiscal Policy Statement presented along with the Union Budget 2018-19 aimed to reach the fiscal deficit target of 3.3 per cent of GDP in 2018-19 BE. Read More Article Source -> Business Standard

All eyes are set on the first Union Budget under Modi 2.0 that is slated to be unveiled on Friday (July 5). With a clear evidence of economic slowdown and weak corporate earnings, Finance Minister Nirmala Sitharaman has her task cut out. Deep agrarian distress, high unemployment rates, the slowdown in automobiles and consumer demand, crisis in NBFC (non-banking financial company) sector and rising pressures in real estate and housing and muted capex cycle in the economy are some of the pressing issues that need addressal. Market experts expect the government to lay out a growth-oriented budget to pump-prime the economy. The priority, they say, should be to arrest the declining growth momentum and the crisis of confidence by being a little expansionary this time. Since inflation is expected to be benign in the short-to-medium term, many experts feel the government should let go of the fiscal deficit target of 3.4 per cent set in the Interim Budget in February 2019. The domes...

The Economic Survey 2018-19 called for implementation of recommendations made by a high level advisory group on boosting the country's exports. The high level panel group, chaired by Surjit Bhalla, has recommended a host of measures and a road map for doubling India's exports of goods and services to over $1,000 billion by 2025. "The High Level Advisory Group submitted its report in June 2019 on how India can enhance its exports. Its recommendations need to be studied and implemented where possible," the survey, tabled in parliament, said Thursday.. It said India's share in global exports is so low that it should focus on market share. The country's exports grew by 9 per cent to $331 billion in 2018-19. "where would the final demand for the large capacities created by high investment come from? The answer is exports. This is why an aggressive export strategy must be a part of any investment driven growth model," it said. Read More ...

The administration on Thursday said "unreasonable motivations" focusing on "overshadow" organizations must be supplanted with organizing new businesses and "baby" firms in high work versatile areas to encourage monetary development and make occupations. As per the Economic Survey 2018-19, postponed by Finance Minister Nirmala Sitharaman in Parliament, arrangements for development of India's MSMEs ought to be re-situated dependent on a company's size and utilization of Aadhaar to maintain a strategic distance from abuse of age-based motivators having a dusk condition of under 10 years. While diminutive people, firms with under 100 specialists regardless of being over 10 years of age, represent the greater part of every single sorted out firm in assembling by number, their commitment to business is just 14 percent and to efficiency is a minor 8 percent, said the Survey. It said work creation in India experiences approaches that cultiva...

Numerous states have accomplished 100 percent open crap free status and individual family restroom inclusion since the dispatch of Swachh Bharat Mission, one of the biggest neatness drives on the planet, the Economic Survey 2018-19 said Thursday. The review record, postponed in Parliament, said since the dispatch of the lead program in October 2014, over 9.5 crore toilets have been fabricated everywhere throughout the nation and 564,658 towns have been proclaimed open poo free (ODF). As on 14 June 2019, 30 States/UTs are 100 percent secured with individual family unit toilet (IHHL). The Swachh Bharat Mission (SBM) has fundamentally improved wellbeing results. Around 99.2 percent of rustic India has been shrouded over the most recent four years under SBM, it noted. "This mission goes about as a driver for wiping out the sex divergence through the development of sex explicit toilets in open zones, for example, schools, streets and parks", the study said. Th...

Financial Survey 2019, postponed in Parliament on Thursday, painted a hopeful image of the Indian economy, anticipating the nation's (GDP) would develop at seven percent in 2019-20, against a five-year low of 6.8 percent the earlier year, with political strength helping a get sought after and speculations. India would need to develop at 8 percent every year to turn into a $5-trillion economy by FY25, the Survey assessed. The estimate is equivalent to the Reserve Bank of India's perusing, which in June brought down its projection by 20 premise focuses from 7.2 percent. A miserable worldwide standpoint produced by US-China exchange strains likewise provoked the national bank to cut loan costs multiple times this year, with the concentrate currently moving to the administration's Budget on Friday for measures to help the economy. The money service said in its yearly Economic Survey report that upside and drawback dangers to development were equally adjusted, with r...

India will need $1 trillion of infrastructure investment to nudge annual GDP growth higher by just half a percentage point in Prime Minister Narendra Modi’s second five-year term. Of this, at least 55% will have to come from public resources. Where’s the money? Those figures from an analysis by the Confederation of Indian Industry are the No. 1 challenge for Nirmala Sitharaman as the country’s new finance minister gets ready to present her first annual budget on Friday. While the scale of investment isn’t very different from what India spent in the past five years, the sorry state of corporate balance sheets makes it doubtful whether the private sector can put up its projected 45% share. Besides, the economy is in dire straits, regardless of the near-7% GDP growth portrayed by disputed government statistics. From consumption and private investment to exports, no cylinders are firing. Government spending is therefore the only hope. But Sitharaman is in a tight corner. It doe...

Head administrator Narendra Modi has his first possibility since a conclusive decision win to goad an economy that is rapidly lost its status as the world's quickest developing significant one. Recently designated Finance Minister Nirmala Sitharaman is required to lift spending and give charge help to purchasers in her lady spending plan on Friday. That will likely extend the spending hole to 3.5% of GDP in the year began April 1 from 3.4% focused in February's between time spending plan, as indicated by a Bloomberg News study. Development eased back to a five-year low of 5.8% in the initial three months of 2019 - well underneath China's 6.4% extension - putting weight on Modi to convey on an upgrade plan to kickstart utilization, a bedrock of the economy. With the worldwide standpoint turning desolate in the midst of elevated exchange pressures, and the Reserve Bank of India effectively cutting loan costs multiple times this year, the center is moving to the ad...