Union Budget Quote Amit Gainda, CEO, Avanse Financial Services

Union Budget 2021 announced some of the most appropriate measures which will provide an impetus to the economy post a difficult year. It’s focus on health & well-being, financial capital & infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation & R&D, and minimum government, maximum governance, ensures a stronger growth trajectory for the Indian economy during FY22.

As education-focused NBFC, we believe that the following announcements have the potential to impact the overall education segment and financial institution sector positively.

Government’s collaboration with UAE to benchmark skill qualifications, assessment and certification and the implementation of collaborative training programme with Japanese will up-skill our youth and provide vocational and industrial skills along with proper techniques and knowledge. The amendment of the Apprenticeship Act to improve the opportunities for the youngsters of our country will build the necessary confidence in them and assist them to be future-ready. These initiatives combined with the proposed regulatory mechanism for collaborations with foreign higher education institutes will enable students to develop global skills and prepare them for a bright career.

We believe that strengthening 15,000 institutes as per the requirement of the National Education Policy is the first step towards implementing the policy in its true sense. It is also mandatory for the sector to push its infrastructure development theme to make education accessible for every deserving student. The importance of this has doubled post the sector shifted to new modules of teaching and learning. Infrastructure improvement and digital advancements with National Digital Educational Architecture (NDEAR) will be instrumental in enabling quality education delivery to all.    

This Budget also announced a further relaxation to the limit for NBFCs to be eligible for debt recovery under SARFAESI ACT 2002. The Finance Minister proposed to reduce the asset size limit from INR 50 lakhs to INR 20 lakhs. This will enable the sector to speed up the recovery process and enhance borrower discipline further.

Lastly, I would like to congratulate our honourable Finance Minister, Nirmala Sitharaman for presenting the first-ever paperless Budget. This shift from Bahi Khata to tablet is a perfect representation of the ‘New India’.