Q&A: FIIB Students Debate Implications of Budget 2019

Making and representing a budget requires a strategic approach and India has to work diversely to reshape its future. The finance budget 2019 panel discussion started with Government promoting sustainable growth and finished with students opening up their curiosity boxes in front of two panellists, Ranjeet Kumar Mishra (Chartered Accountant (C.A.) & Cost Accountant (I.C.W.A.)), and one moderator (Prof. Kirti Sharma).

These are the questions asked by the students of FIIB during panel discussion:

Q1: How budget 2019 is affecting the manufacturing industry of India?

A: Whenever a change happens, everything connected to the sector automatically experiences associated pros and cons. Undoubtedly with the budget 2019 coming in effect, India will soon become a global manufacturing hub that finely operates in a variety of sectors. Be it automobiles, aviation or any other manufacturing sector – leaders cannot attain good results in the absence of thought leadership.

To clear students doubt, the panellists explained that it is wrong to judge an entire industry by the goods and bads of a particular brand. For example: In the transportation sector, OLA and Uber are performing well only because they’re versatile with the thought leadership skills, and on the other hand, Mehroom is a vanishing name of transportation industry as it lacks in understanding customer needs. He further added, “Revenue, costs and loss are the major factors to consider”. In a nutshell, budget 2019 will actively boost the manufacturing sector only when you (as a taxpayer) don’t define the whole industry’s growth by merely talking about a particular brand’s growth.

Q2: Underlying the farmer’s benefits – will the income proposed to marginal farmers be a good step?

A: One of the students emphasised on the income support for farmers and asked whether it is a progressive step to put forward or not. The government proposed to transfer an amount of 6,000 INR per year into the accounts of farmers under the PM Kisan Samman Nidhi scheme to fight increasing rate of farm distress. The panellist draw students attention toward some facts in order to clear their doubts, which are as follows:

  • It is good to have something in hand rather than empty hands. The amount proposed by the government is, undoubtedly, lesser than what we expected in the first place. But, if we see it from their point of view of the farmers, then it is a significant amount to fulfil their basic utilities.
  • If you are aware of the fact that Orissa is paying INR 12,000 a year to their farmers then, you’ll get to know that the initial start is not that bad to go with.
  • The basic requirement of a common man or a student to live a healthy life is far different from what a farmer expects or wants to. They don’t like to eat pizza, go for outings or wear different clothes in their day-to-day life so, it is beneficial for them to have something in their hands.

To cut to the chase, a hefty amount of 6,000 a year might not enough to mitigate their stress, but it is not too bad to have progressive future goals.

Q3: What are the bigger threats to Indian economy?

A: While discussing on the matter of “Inflation rate in India”, one of the students raised his concern about the threats to Indian economy to which panellists replied – “Digital import is a big concern, even bigger than oil import”. They further added, almost every individual nowadays require a smartphone in their hand making it quite difficult for us to not import digital accessories from other countries. Henceforth, Smartphones are the bigger threats to the Indian economy.

Including this Q&A round, the students also discussed and understood the utmost need to make India an energy-efficient country. Fortunately, the Government not only passed such a worthy budget but also working progressively to make India a country that stands second to none in terms of economy.