Union Budget Comments by Tarun Chugh, CEO Bajaj Allianz Life
Indian stock market has matured over the last 10 years and the impact of budget on the markets has been muted in the past few years. In the last Union Budget, as the government announced long term capital gains tax, the markets reacted. However, in 2-3 trading sessions, markets regained momentum. This year's budget, presented by Finance Minister Nirmala Sitharaman has left economists guessing about how the government will achieve the targets for growth and spending on projects.
The budget has remained a non-event for majority of sectors as the government hasn't announced any concrete steps on its growth and spending plans for different sectors.
The comments on Union Budget from Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance....
The Union Budget 2019 has come across as all-inclusive, seeking to boost infrastructure and foreign investment, and at the same time giving impetus to a digital economy. The government has announced no fee on merchants on card transaction in order to encourage all merchants to accept card payments.
Further 2% TDS has been proposed on cash withdrawals of above 1 cr. This move will boost digital transactions in the country.
For the insurance sector, the government proposed a100% FDI for insurance intermediaries, thereby making India a more attractive destination for FDI. This is a positive move for the industry, and may help better penetration of insurance products.