In chat with Anil Singhvi, IIFL Chairman Nirmal Jain says Budget 2021 proposals are excellent news for the market

Right at the outset, IIFL Chairman Nirmal Jain said 'Congratulations' to everyone over Budget 2021 proposals. The reason behind it was that this Budget is not only good for India but also for the citizens of India. Market participants were worried about taxation issues in the form of Covid Tax, Wealth Tax, Long term capital gains tax or super-rich tax.

Right at the outset, IIFL Chairman Nirmal Jain said 'Congratulations' to everyone over Budget 2021 proposals. The reason behind it was that this Budget is not only good for India but also for the citizens of India. Market participants were worried about taxation issues in the form of Covid Tax, Wealth Tax, Long term capital gains tax or super-rich tax. None of these things came in for a mention in today’s Budget, which is excellent news for the market. Also, TDS on REITs and tax on Dividend, many FIIs were worried about some issues, these all issues were resolved in today’s Budget announcements.

Focus on capital expenditure which has increased by 35% to 5.4 lk cr is a great news for Indian Economy, Jain said. In the past 2 years we noticed that capital expenditure reduced from 18% to 16%. This decision will not only improve the economic investment in India but will also generate many job opportunities in India, he added.

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Broadly, the Budget covers all sectors and the Finance minister indicated that the Government wants to sell 2 PSU Banks and one general Insurance company, Jain said. The FDI in Insurance sector has been increased to 74% from 49%, these are bold moves taken by the Government which will benefit the economy. The Budget announcements are much better than expectations considering the pandemic and the situation of the Global economy, he added.

#BudgetOnZee | देखिए इंडिया इंफोलाइन (IIFL) के चेयरमैन निर्मल जैन की बजट 2021 पर पहली प्रतिक्रिया।#Budget2021 @JainNirmal pic.twitter.com/gDaGzYKCnE

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The record of the Government is not bad and the V-shaped recovery expected next year could be much faster than expected. FII’s investments which were stalled for past few sessions will again resume shortly. The sentiment of the market is extremely positive and the participants are extremely bullish.

If India wants to compete with China then strong Budgets and policies like these have to be implemented for the next decade or two to bridge the gap with China. The momentum should not only continue for next 1 year but also it is important to continue with the same pace going forward in the coming years as well, Jain concluded.

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