Ajay Srinivasan views on Union Budget

Mr. Ajay Srinivasan is currently serving as CEO of Aditya Birla Group’s Financial Services Business. He is one of the top corporate leaders in financial sector and has served top position of many big financial institutions of India. As the Union Budget 2015 is out, Mr. Srinivasan has shared some expert views on the budget and its characteristics.

According to Mr. Srinivasan, union Budget 2015 is very realistic. The main focus of budget is not on the big announcement but an optimistic approach has been taken by Mr. Finance Minister. The budget is directional and set up a definite directions and rules especially for the underserved areas of Indian economy.

Main Points of Budget according to Mr. Ajay Srinivasan Aditya Birla

 The budget 2015 is a directional budget for various policies in financial sector. It will help directly to the increase of financial expenditure and will also help to multiply infra fund and national income. The biggest target of the budget is a step for disinvestment in next year which as per Mr. Srinivasan is a very good approach. One of the main economical issues that India is facing now is recovery process from lenders. It is a very tedious task but in this budget, the bankruptcy code is established and NBFC (Non Banking Financial Companies) has been brought under the SARAESI Act. According to Mr. ajay srinivasan aditya birla, this will definitely help to increase the recovery process from lenders and encourage money flow smoothly in the market.

How rules on NBFC helps garnering India’s economy:

In Small industries and retail sectors NBFC plays a very significant role. It behaves as financial intermediaries in those sectors. Economical Survey says that almost 13.1% of bank assets are accounted under NBFC in recent year. This is a big percentage and it is a great step to get control over NBFC. It will increase small investors believe in financial sector and definitely an increase will be seen in cash flow.

Other good things of Union Budget in the view of Mr. Srinivasan:

There are two more schemes that are welcomed by Mr. Srinivasan because Gold Monetization Scheme will discourage people’s big investment in gold so import of this metal will automatically decrease. The reason behind this scheme is to diverse money investing from physical asset to financial asset. Other scheme that also plays very significant role for this purpose is push for REIT (Retain Estate Investment Trust). The motive behind this scheme is also to monetize money in this sector.

After effect of Union Budget as per Mr. Ajay Srinivasan:

In ajay srinivasan interview he said that this budget is an optimistic endeavor to stop black money and encourage flowing of cash money into formal economy. It will positively help to widen the tax base as well as helps to garner savings. The coverage of NBFC under SARFAESI will ensure non- financial institutions to extend their credit especially to underserved areas. The monetization of REIT will encourage multiplier effect through increased in construction. Mr. Srinivasan appreciates Mr. Finance Minister’s desire to bridge the gap between banks and NBFC as well as private Sector. It will help the bonding among banking sectors and also will help to increase the interest of common people towards banking sectors and financial institutions. Mr. Srinivasan is very positive about applying for the license of NBFC.