Pre Budget Expectation from India Inc
Industry leaders also give suggestions
Mr. P Srinivasavaradhan, President, TVS Srichakra Ltd.
“Corporate Tax Rate cut along with reduction in GST on electric vehicles were some of the few welcome steps initiated by the government last year. For the coming year we urge the government to address the supply demand gap in natural rubber a critical raw material of the tyre industry. We request the government to reconsider the GST component in tyre pricing, also relook at relaxation in GST for two-wheelers. Steps to curb rising raw material and fuel prices will aid both vehicle manufacturers and auto component makers in the long-term. Some of the other focus areas are to strengthen the required road & transport infrastructure. Reviving the rural economy can help tackle the current slowdown.
While the government is taking steps to improve supply of goods & services, we expect the government to take steps to increase the demand by making more liquidity portion available in the hands of consumers.”
Mr. T Chitty Babu, Chairman and CEO, Akshaya Pvt Ltd
We appreciate the efforts taken by the government in the last one year which includes relaxation of ECB guidelines, Establishment of an organization to provide credit enhancement for infrastructure and housing projects to facilitate financing of homebuyers under PMAY, lowering of interest rates on House Building Advance, frequent repo rate and GST rate cuts to spur the growth demand in the real estate sector. We urge the government to create policies for Single Window clearance systems and granting industry status to the real estate sector. These measures will help regulate the flow of funds from banks, investors and other financial institutions and lend buoyancy to Housing for All initiative of the government. Also, we expect that in this budget government addresses the ongoing NBFC crisis and introduce tax benefits for home buyers and real estate developers to reduce the stress on the real estate sector and help in bringing back the buyer sentiment. We also hope that the government relooks at reinstating ITC benefits for real estate developers as it will help the developers in offsetting the costs and maintain steady prices and margins for the projects, thus revitalizing the real estate sector.
Mr. Nishanth Chandran, Founder and CEO, Tendercuts
We urge the government to roll out policies to tackle the negative approach towards consumption of meat and seafood and aid in revolutionizing the meat retail industry in India. With a new generation of entrepreneurs focusing their attention towards tapping the potential of the meat and seafood industry, steps like improving animal husbandry to trigger job creation and provide subsidies and incentives to the sector to fuel the growth and consumption in the country. Also, improvements in infrastructure to supplement the rising demand, stricter food processing standards and an enhanced network of supply chain management and better implementation of cold chain logistics can allow the meat retail industry to chart the necessary progress in the coming years.
Mr. Sunil Rallan, Chairman and Managing Director, J Matadee Free Trade Zone Pvt Ltd
We are grateful to the government for accepting an outstanding demand to turn existing SEZs into a multi-sector SEZs. We at Chennai FTZ believe that the amendments will play a vital role in boosting investments in the manufacturing sector, greater employment generation and growth in export volumes. The potential of SEZs has been furthered by providing relaxation and simplifying the provisions governing the minimum land area requirement for setting up of SEZs. Foreign Investors who are desirous of setting up new manufacturing units will find the SEZs as attractive investment hubs with good infrastructure, while redefining last mile connectivity. Nearly one third of Indian Exports are out of SEZs, which now have the potential to become a strong pillar of the Indian economy and allow integration of technology and businesses to tap and drive the growth potential of the country. We are hopeful of more favourable policy amendments and reforms for the SEZs very shortly.
Mr. Sushanth Pai, CFO, Matrimony.com
“This is a good opportunity for the Government to push further on economic reforms. For consumer internet companies that invest heavily and put the consumer at the forefront, we believe that the Government can further simplify the dynamics of doing business. This can include reducing GST for certain services that have the potential for higher growth.”
Mr. K.John Baby, CEO, Funskool India
We urge the government to bring in reforms in this budget to make manufacturing and retailing blossom under the purview of 'Ease of doing Business'. We hope that there are stricter quality standards are introduced to keep a check on illegal imports and help the toy industry in India grow and expand to the next level. We expect that the government takes steps that improves household incomes and spurs toy retail for the long-term, in the country.
Mr. Jithendra Vummidi, Managing Partner, Vummidi Bangaru Jewellers
"We urge the government to reduce taxes for individuals as more money in their hands will boost the economy. Bring the taxes down to 10% to 15% every Indian will prefer paying the tax rather than evading. More spending will result in the wheel of economy churning and then eventually lead to higher GST collections and a winder base for income tax. Clean up measures have been undertaken, now it is time to reduce income tax rates. We don’t need to look outside for funds they will be plenty available within. please consider the long term capital gain in gold to be nil in case it is exchanged for equivalent amount of gold jewellery. This would help the tax payers and ease the compulsion on income tax. Finally, if possible bring down the customs duty rate where illegal smuggling will be unattractive this will lead to keeping all gold treasures within the system."