Union Budget 2019: SME watch has been saved
Perspectives
Union Budget 2019: SME watch
Financial Services
Our experts share insights and in-depth analysis from Union Budget 2019 on the critical issues and key reforms announced on 5th July, 2019.
The Union Budget, 2019 has brought about some positive changes for boosting foreign investment in India Inc. Focus areas of the Government this time clearly is on infra, start-ups and NBFCs. Few clarifications from tax perspective have also been provided.
Kalpesh Maroo
Partner, Deloitte India
Key steps taken to boost FDI include increasing FPI investment in companies from 24% to sectoral limits, permitting FPIs to invest in listed debt securities of REIT and InVIT, easing of KYC norms of FPIs and easing of local sourcing norms for single brand retail trading” #FOREIGNINVESTMENT
Kalpesh Maroo
Partner, Deloitte India
Measures to ease the liquidity squeeze in the NBFC sector has been one of the central themes of this Budget. Credit enhancement scheme to partially guarantee refinance of top tier loans from NBFCs by PSBs, measures to deepen the debt capital markets including proposals for removal of lock-in for transfer of debt securities in IDF-NBFC by FPI to domestic investor are all welcome steps. The move of the government to recapitalise banks plus a greater shift towards foreign borrowings for sovereign debt are all intended to free up liquidity in the domestic markets.
From a tax perspective, the benefit of taxation of interest on NPAs on receipt basis is now extended to deposit-taking and SI-ND-NBFCs, which is currently available only to Banks. #NBFCSECTOR
Kalpesh Maroo
Partner, Deloitte India
