Indian Budget 2020 – a Straight Talk on Expectations

Indian Budget 2020 | Straight Talk on Expectations, Recommendations |

2020, a year of hope for Greater India in terms of economic revival, seeds for future glory, strategic direction, landslide reforms, and measures to avoid negative forces influencing countries economic prosperity and happiness.

2018, we guess Mr. Nara Chandra Babu Naidu, former CM of AP, 1st coined the word “Happiness Index” for his state of Andhra Pradesh, later being used every where. It’s indeed a greater indicator (some what non-material, but) to show case a societies real growth.

1991, Prime Minister Mr. P. V. Narasimha Rao has initiated a bold economic reforms, post that India was adjusted to the winds brought minor reforms to sustain the growth.

Unless the focus of 2020 budget is to privatize the massive non-functional PSUs, labor, rural agriculture reforms, it’s extreme challenge to even think about $5 trillion target.

Team expectations / recommendations on Indian Budget 2020 were primarily focused on Individuals, SMEs.

Indian Budget 2020 | Straight Talk on Expectations, Recommendations |
Indian Budget 2020 | Straight Talk on Expectations, Recommendations |

Reduce to Increase

It’s every one’s list to have “minimum govt maximum governance“, current government can take a bold step towards automation, privatization of non-functional PSUs, centralizing government functions to reduce the Government expenses, and increase the Governance.

MSMEs are Real

  1. Increase the Credit Flow to MSMEs
  2. Recognize 6.5 Cr MSMEs are the real Economy … not just the Stock Market

Spur Demand

  1. Let the eligible field get the benefits directly rather giving large incentives to companies. Wish what was already done in 2019 will bring the trickle down affect in 2020.
  2. Give IT Relief to Taxpayers (announced + yet to announce)
  3. Reduce / Adjust GST rates on basic commodities with an eye on rural economy. $5 trillion economy cannot be achieved without rural participation.

GST Compliance

  1. Avoid Frequent Changes to the GST Law / Systems
  2. GST is not the problem for the Economy. It’s the Demand.
  3. Enforce full GST but do not enforce e-Invoicing for business with < 500 Cr
  4. Re-Organize GST Slab Rates in the lines of Raw (low – 0%), Processed (Manufactured), Heavily Processed, Imported (higher-28%).
  5. Promote local manufacturing with the above there by better employment.

IT Compliance

  1. Only bank deposited House Rents are allowed to be considered for HRA
  2. Encourage Small Family of 4 (Wife, Husband and 2 Kids) to get special rebate.
  3. Individuals annual taxable income of Rs 5 Lakhs will get full tax rebate
  4. Limit Cash Transactions for Doctors, Hospitals, Lawyers and other Professionals
  5. Increase LTCG Tax holding period to 2 years

Ease of Starting a Business

  1. Make all business registrations Online and Self including Firms, LLPs, Private Companies. No 3rd party Certification is required.
  2. thru a simplified Interface and Aadhaar based KYC
  3. Replace Aadhaar based OTP mechanism in place of DSCs

Level Playing Field

  1. For whom the nation is for ? Some thing is not right ! Isn’t it ?
  2. Setup a committee to assess economic impact of eCom Operators on MSMEs. Effort to make them sustainable, and co-exist.

Root cause of most Frauds

  1. Re-enforce standards in Asset valuations.
  2. Link & Enforce GST turnover in Income Tax Filings immediately to reduce the inflated turnovers & Bad Loans

EZ Loans to SMEs

  1. Measure to give Online EZ Loans based on GST Turnover, Sector Specific Indicators
  2. Craft standards for faster / STP Loans by eliminating non-material, 3rd party Balance Sheet Certifications

Cost of Money

  1. Promote Govt based Payment / Wallet Services Rupay & UPI with “Zero MDR”
  2. Today Digital Rs. 100 is actually Rs. 97.5 / Need to address it immediately.
  3. Like a Paper Currency, Digital should not have transaction cost

Cost of Credit

  1. Lower the Cost of Credit for MSMEs (vs Larger entities)
  2. Recognize real vibrancy in our society is with MSMEs
  3. Real India is still shielded from Stock market shocks. Why ?

Higher Education

  1. Build Institution Industry Quotient (IIQ) for better Synergy for Innovation
  2. Increased Grants must be linked with IIQ
  3. Promote entrepreneurship from the Institution

Banking Sector

Transformation in Banking Sector as a whole, re-enforcing asset valuation, privatization of some of the banks, and redefining the role of banks as a strategic rather mere infrastructure would bring much capital for the government to invest in next generation infrastructure.


It’s equally vital to have small things like ‘paper reduction act‘ initiatives in all government offices, similar to what was in other developed nations, to automate, build accountability for an effective governance and building next best greater India.


Finally, we really think the government will take serious measures to shield away from external pressures in the name of standardsations to focus for real India and do a bold PSU privatization and reforms pending for 20+ years.

At the end we wish the budget for a healthy, happy, progressive India.