As the first union budget post the implementation of GST was presented yesterday in the parliament by union finance minister Arun Jaitley, here's an analysis on who's going to be the real beneficiary of this budget, branded by analysts as a corporate friendly budget.
Due to widespread protests by farmers all over the country, with the increase announced in crop pricing, it would benefit farmers, as well as agriculture based companies like Kirloskar, Shakti pumps India, JK agriculture genetics. With the announcement of free health insurance for 10 crore families, companies like Apollo hospitals and Fortis healthcare will be benefited. As railway infrastructure is going to be developed, it will benefit Larson and Tubro and IRB infrastructure limited. As emphasis was also made on gold, companies like Titan and gold jewelry shops in general will reap benefits. As airport maintenance and expansion is a part of the budget, GMR infrastructure and Gvk Power and infrastructure will be the major beneficiaries.
Coming to those who'll be facing losses because of
the budget, as the mobile import tax has been modified from 15 to 20%, it might
impact sales of companies like Samsung and Apple, leading them to open
factories in India. With the impacts of tax on equity investment, IDFC, ICICI
prudential, HDFC, reliance capital will be affected. Despite announcement that
reforms will be announced for defense development, no such quantitative,
significant announcement was made in the budget. With the increase of education
and sanitation/ healthcare taxes from 3 to 4%, it will have a negative impact
on products associated with them as well.
