Quote on Union Budget 2026 By Mr Umesh Mohanan, ED & CEO of Indel Money
Below Quote on Union Budget 2026 By Mr Umesh Mohanan, ED & CEO of Indel Money
"The thrust of Union Budget-FY27 is to attract more foreign investments. It is significant in the backdrop of rupee depreciation, slowing exports and high tariffs. For that, the Budget is wooing NRIs and Overseas Citizens by providing tax exemptions and simplified FEMA rules.
Also, the Budget is focusing on bringing more investments from large foreign corporations by offering basic customs duty exemptions to aircraft components, nuclear power projects, lithium ion batteries, critical mineral processing technology, solar components, and microwave ovens. The restructuring of Power Finance Corporation and Rural Electrification Corporation will also be seen in this light. These are the sectors that are going to drive India’s economic growth in the medium term.
On the banking and finance front, the constitution of a High-level Committee on Banking for Vikasit Bharat is a notable step that will address the credit-financing requirements of banking, NBFC and MSME sectors. For the MSMEs, the Trade Receivables are now being treated as asset-backed securities, which will help them address their credit requirements.
On the fiscal front, total market borrowing of Rs 17.2 lakh is slightly above the market estimates but the government has strictly adhered to its fiscal glide path by reducing the FY27 fiscal deficit at around 4.3% of GDP and reducing the Debt-to-GDP ratio to 55.6% from the current 56.1%. Further, Rs 12.2 lakh crore public capital expenditure is commendable, which will attract more private capex.
The new Income Tax Act and the simplified tax regime is another significant initiative. It will persuade taxpayers to declare their assets and settle past disputes. By this, the government is planning to increase direct tax collection and tax compliance by declaring a number of amnesty schemes, and extension of return filing deadlines.
Another big announcement is the tax holiday for cloud services and data centre businesses till 2047. It has the potential to create millions of jobs in India and attract a significant amount of foreign capital. To enhance bond market, the budget has announced financial support to municipal bond issuers, and total return bond swap facility to corporate bond issuers. The Minimum Alternative Tax (MAT) and STT have also been streamlined and reduced to support capital markets."
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