India Budget: Watch out for rupee gains
The Indian rupee could get stronger if investors, especially the foreign ones, react positively to the latest proposals in the Budget for 2020-21. If they do, more foreign funds coming into the markets could firm up the rupee’s recent weakness.
The currency had been under significant pressure each time more data trickled out showing growth was slipping and that key sectors such as automotive and banking were under-performing. The rupee had touched 19.63 on January 6 after the US-Iran missile spat.
Nilesh Shah, MD & CEO, Kotak Mahindra AMC
Budget is good on intent. However, the key is efficient execution in a time-bound manner. There are many positives to simplify things and encourage entrepreneurs but again, key will be execution in a time-bound manner. Intent needs to be converted into implementation.
Abheek Barua, Chief Economist, HDFC Bank:
The Budget provides credible numbers in terms of the fiscal math, recognising the revenue shortfall faced this year. It uses up the 50bps point leeway that the FRBM act provides for both this and the next year which is a welcome step.
Mr. Vikas Garg, Deputy CFO, Paytm:
‘We see this budget as a good step in direction to become a $5 trillion dollars economy. As a technology player embedded in India’s technology ecosystem, we welcome the government’s vision to build Data Centre Parks in the country. The government’s focus on enhanced digital connectivity, and focus on emerging technologies such as machine learning and artificial intelligence, along with the allocation towards quantum computing are sure to provide a fillip to India’s economy’
Vivek Jain, Chief Business Officer, Shiksha.com:
“The budget gives a good push to our education sector which in turn will help generate employment and boost our economy. The proposed investment in Study in India program will bring more youth from foreign countries and it will be a big step towards the aim of making India the education hub of the world. IND-SAT targets Asian and African countries only but we hope it will open to the whole world soon. Reskilling students and teachers will help us compete internationally.”
Mayank Kumar, Co-founder and MD, upGrad
“The Government has introduced major developments regarding online education and upskilling with the announcement of the 2020 Budget. The Rs 99,300 crore outlay for the education sector in 2020-21 and Rs 3,000 crore for skill development is a significant leap for education institutes and online education providers in India. We believe that upskilling is the critical route to steer India towards becoming a $5 trillion economy.”
Kunal Bahl, CEO & Co-founder of Snapdeal:
“Overall, Budget 2020 is a thoughtful weaving together of specific proposals to tackle varied issues. Measures to improve access to finance for MSMEs and reduced taxation for the middle-income segment are welcome steps. Boosting physical infrastructure, expanding digital connectivity and growing use of technology in government functioning are important building blocks for the long-term growth of the Indian economy,” Bahl said.