Budget with BS: 'We are in one of the biggest market booms', says Motilal Oswal's Raamdeo Agrawal

Latest updates: Catch all the updates on the analysis of the Union Budget for FY25 here

7:02 PM

For entrepreneurs, it's time to raise equity capital from the market: Nilesh Shah, Kotak Mahindra AMC

"For entrepreneurs, it's time to raise equity capital from the market and use it to acquire technology or invest in R&D," said Nilesh Shah, Kotak Mahindra AMC.

7:02 PM

The gap betwen fixed income and equity taxation favours the latter: Prashant Jain

Prashant Jain, founder and chief investment officer at 3P Investment Managers said, "The gap betwen fixed income and equity taxation favours the latter. It is not in a bubble.. only some pockets in small and midcap. The 70% of the market is at reasonable value. Earnings have grown massively in recent years, but now that the base is high, the growth will be slower but will still be healthy enough if it's around 15 per cent."

6:51 PM

We are passing through one of the biggest boom in the market: Raamdeo Agrawal

"We are passing through one of the biggest boom in the market.. the retail boom. With the addition in retail investors and the retail inflow growing, foreigners are also tired of selling. Domestic are also sitting on cash. The flow is relentless at Rs 70-80k cr coming every month. A lot of shift is there from FD to the markets. There is a lot of liquidity," said Raamdeo Agrawal, Co-founder & Chairman, Motilal Oswal Group during 'Budget with BS' hosted by Business Standard.

6:33 PM

Indexation should have been withdrawn on prospective basis not retrospective effect: Nilesh Shah

"Indexation should have been withdrawn on prospective basis not retrospective effect. Otherwise, removal of indexation is fine," said Nilesh Shah, Kotak Mahindra AMC.

6:32 PM

Our competition is with China, Vietnam, and Singapore: Raamdeo Agrawal

On taxing overseas investors, Raamdeo Agrawal said, "We compare with US. Our competition is with China, Vietnam, and Singapore. Such countries don't have capital gain tax. If we don't want foreign flows, then we can let go of it."

 

6:28 PM

Atithi Devo bhava is good for tourism but not for investors: Nilesh Shah, Kotak Mahindra AMC

"We have only covered half a distsnce. If a foreign investor trades in doemstic market they are taxed as a capital gains. For Indians, trading in the derivative markets are taxed as other income. This anamoly has to be removed. Atithi Devo bhava is good for tourism not here," said Nilesh Shah, Kotak Mahindra AMC.

6:26 PM

Sebi is working to bring down the speculative activities in the F&O market segment: Andrew Holland

"Sebi is working to bring down the speculative activities in the F&O market segment. This along with the hike in STT will likely to have the desired impact," said Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies.

6:19 PM

Govt should prioritise selling stake in low float PSU stocks: Nilesh Shah, Kotak Mahindra AMC

Managing Director of Kotak Mahindra Asset Management Company Limited, Nilesh Shah said, "Government should prioritise selling stake in low float PSU stocks. Some PSUs are trading at high valuations vis-a-vis their peers due to low float."

6:17 PM

stability in taxation and continuity in policy appealed in the budget: Prashant Jain

Prashant Jain, founder and chief investment officer at 3P Investment Managers said, "Stability in taxation and continuity in policy appealed in the budget. Incentive on equity over fixed income has gone up."

6:11 PM

Budget has made long term investment less attractive and investments in gold more attractive: Raamdeo Agrawal

"Budget has made long term investment less attractive and investments in gold more attractive. It is a significant jump in years to come," says Raamdeo Agrawal, Co-founder & Chairman, Motilal Oswal Group.

 

5:28 PM

The increase in mcap of PSEs is reflective of the better management: TV Somanathan

During the Business Standard's discussion 'Budget with BS', Finance Secretary TV Somanathan said, "We don't compare ourselves with city states like UAE and Singapore. There is no large economy which does not have income tax. City states are not our exemplars when it comes to taxation. We will not be able to have the kind of taxes which they have and we don't intend to. We are a large economy with 1.4 billion people. We are not a oil economy, an entreport or capitalist branch of a communist economy."

5:25 PM

We will look at maximising our returns: TV Somanathan

On disinvestment, Finance Secretary TV Somanathan said, "There is a change in the emphasis. It is to look at it the way an investor would. We will look at maximising our returns."

5:24 PM

'Apart from RBI we have seen a big increase in dividends both from banks and PSEs'

"Non-RBI part of dividend is sustainable and it will grow at least at the rate of nominal GDP."

5:23 PM

Philosophy of Atma-nirbharta conitnues to be the guiding force: TV Somanathan

Finance Secretary TV Somanathan said, "We are following the phased manufacturing programme and not committing the mistake that is often made with infant industry arguments that is the infant doesn't grow up."

5:16 PM

It is not necessarily true that removal of indexation causes loss: TV Somanathan

"It is not necessarily true that the removal of indexation causes a loss because the rate of tax has come down from 20 per cent to 12.5per cent," says Finance Secretary TV Somanathan.

5:13 PM

We have grown from about 30 million tax payers a decade ago to about 82 million tax payers now: TV Somanathan

5:13 PM

The problem is that there are professional people who are under reporting incomes: TV Somanathan

On income tax filers, TV Somanathan said, "I think the steps that we have taken are producing results. The problem is that there are professional people who are under reporting incomes."

5:10 PM

'There has been a major structural improvement in the petroleum subsidy in the last years'

"Subsidy challenge has not gone away. There has been  a major structural improvement in the petroleum subsidy in the last years," says TV Somanathan.

5:09 PM

Food subsidy to go up as MSP goes up: TV Somanathan

"There is no room for efficiency improvements in our food subsidy. It will go up as MSP goes up," says TV Somanathan.

5:01 PM

Intend to cut debt-to-GDP ratio, says Finance Secretary TV Somanathan

On the fiscal deficit, the finance secretary said that the government has a choice between a beautiful number which no one follows and a flexible number which everyone follows. The government does not want to commit to a number which it cannot achieve, he stated.

4:56 PM

Want firms to take people that they would not normally take without the subsidy, says TV Somanathan

"Ministry of Corporate Affairs will sit with the top 500 companies which account for two-thirds of the CSR expenditure. We have a big program on training industrial skills. Internships can happen with the suppliers or value chain partners of these top 500 companies. It will cost us Rs 60,000 crore. Of this, Rs 30,000 crore will come from states," TV Somanathan said. We want firms to take people that they would not normally take without the subsidy, the finance secretary added.

4:45 PM

We want Indian style polity and Chinese style growth, says TV Somanathan

"We want Indian style polity and Chinese style growth.  Any person who hires a person who was not previously employed in the formal sector will get the subsidy. The cloud is that we have skill gap. The silver lining is that we also seem to have a problem where industry says that we can't find people to give jobs to," says TV Somanathan.

4:41 PM

PM Modi was keen on specifically targeting unemployment, says TV Somanathan

"There is universal agreement that we need to do something about employment.  This is a federal democracy. Many of the things cannot be overseen by the union. There are limits when it comes to labour, skilling and education. Most of it falls in the state government. PM Modi was keen on doing very specific on employment. This is a response on the policy direction. Time will tell how well it does. Conversations with the industry indicates that if you can't fix all labour issues, let's take it as a handicap and try to neutralise it through fiscal incentives", TV Somanathan said at the Budget with BS event.

 

4:36 PM

There is a clear message on continued emphasis on macroeconomic stability, says TV Somanathan

"What this budget tries to do is two things. One, continue what is good, and two, start more good things. In terms of fiscal consolidation, it signals continuity on an issue where continuity was important, especially in a changed political context. However, there is a clear message on continued emphasis on macroeconomic stability. It is something that we are setting out for Indian citizens, market participants, and people outside India, as well as for the government's own internal decision-making," Finance Secretary TV Somanathan said.

 

4:33 PM

Budget shows the agenda govt has set for itself for next 5 yrs, says TV Somanathan

"Budget speeches are not as is imagined by bureaucrats. They are political documents and set out the agenda of the govt. This shows the agenda that the govt has set for itself for the next 5 years,"  TV Somanathan, finance secretary, Ministry of Finance said.

4:26 PM

There are constraints to what the govt can do on fiscal consolidation, says Sajjid Chinoy

"I think we have to first appreciate that we're on a fiscal consolidation path and there are constraints to what the government can do",  Sajjid Chinoy said. "I completely agree over a decade, India needs more expenditures given where we are on health, education, skilling, green transition, perhaps on defense. And we've all agreed that deficits may have to come down to varying degrees," he added.

4:21 PM

We need to increase revenue; GST needs to rise way higher: Pranjul Bhandari

"We need to increase revenue. In my analysis, in both FY11 and FY25 estimates fiscal deficit is 4.9% of GDP. We have the 1% room to invest in healthcare and education. It is revenue which we really need to fix. Personal tax revenues are way higher than corporate tax. GST needs to rise way higher. We need tax reform. One thing missing from the Budget was on non-tax revenues like privatisation. We are way lower there than we were in FY11," Pranjul Bhandari said. 

4:19 PM

Indian economy is stuck at pushing per capita income higher, says Indranil Pan, chief economist, Yes Bank

The Budget has done enough to push the demand ahead, said Indranil Pan. If we have to elevate ourselves it has to come from per capita income where we suffer, Pan added.

4:05 PM

This is an economist's budget, says Samiran Chakraborty, MD, Citigroup

Budget is focusing more on MSMEs because they are employment creators, Samiran Chakraborty said today. Market people don't appreciate reforms as much as economists. This is an economist's budget, Chakraborty added.

4:00 PM

Coming five years will be about developing human capital, says Samiran Chakraborty, MD, Citigroup

"The first five years was about formalisation of the economy, the next five was about infrastructure, the coming five years will be about developing human capital," Samiran Chakraborty said today.