 "Certain Budget announcements see mixed reaction from industry")
Here's the lowdown on how compnies are reacting to the Budget this year:
SANJIV GOENKA, VICE-PRESIDENT, RPG ENTERPRISES
It is a very definite and major response to an extremely difficult and challenging economic situation. The Budget recognises the need for growth and investment as an essential tool for development. It is a very strong attempt in making investment in India easy, friendly and predictable.
Steps like introduction of investment allowance on plants and machinery, PPA on coal projects, investments on wind energy will go a long way to improve the confidence level.
The tax-free bonds, the clarification between FII and FDI are all right steps which will stimulate the mood to invest. The process on the infrastructure sector and need of the power sector have also been clearly addressed. Overall, an extremely good Budget in a very compelling situation.
SUNIL DUGGAL, CEO, DABUR
The Budget is largely uneventful and is not expected to do much to boost sentiments. Given the fact that this year's Budget comes against the backdrop of the slowest economic growth in a decade, the Finance Minister has missed the opportunity to give that much-needed booster dose for growth. In fact, the absence of any big-bang negative proposal in this year’s Budget can be seen as a big positive.
There have some been some feel-good moves in the form of special schemes for three key sections of the society, i.e. Women, Youth & Poor, in addition to greater thrust on Infrastructure and higher spends on Food Security. It is also heartening to see that the government is finally moving ahead with the introduction of Goods & Services Tax (GST) and the proposal for balance CST compensation to the States is a move in the right direction.
I am quite happy with the government’s continued focus on rural India. The decision to extend interest subvention scheme for short-term crop loans, higher allocation for National Rural Employment Guarantee Scheme are big positives which would surely go a long way in putting more money in rural pockets and improving their standards of living. This would, in turn, ensure continued rural demand.
DINESH SHAHRA, MANAGING DIRECTOR, RUCHI SOYA
Thrust on the rural and infrastructure development in the Budget has brought cheers for Agro-based companies like ours. Total withdrawal of export duty on de-oiled rice bran oil cake will help the industry as such a duty had made our exports uncompetitive. Investment allowance at the rate of 15% on investment in plant and machinery made after April 01, 2013 will also boost the industry.
Low cost of financing and generation based incentives will encourage investments in renewable energy projects. Announcement of definite toward the GST is a welcome move and I am sure, it will be backed by immediate concrete steps. All in all, the Finance Minister seems to have achieved a balancing act of fiscal prudence with emphasise on both growth and stability.
ASIM WARSI, VICE PRESIDENT, SAMSUNG MOBILE
The benefits announced for key sectors like infrastructure, agriculture and education are bound to positively impact the economy. This year’s budget initiatives focusing on women and youth also resonate well. The 15% investment allowance on manufacturing investment should give a fillip to domestic manufacturing. However, in overall terms, we do not see the Budget reviving the consumer sentiments in the absence of any specific incentives to boost consumer sentiment itself. Further, the increase in the excise duty on mobile phones will not have a positive impact on the mobile industry and should lead to an increase in prices for end consumers.
SN RAI, CO-FOUNDER & DIRECTOR, LAVA INTERNATIONAL LTD
The excise duty proposed in the union budget on Mobile phones priced Rs 2000 and above would have a very high impact on the industry. The industry is already suffering from Non-Uniform Vat issue and the increase in the duty further escalate the prices. Also, this step is a discouraging move to the domestic industry which is looking at making India manufacturing base for mobile phones.
NARESH H BHANSALI, CEO, FINANCE, STRATEGY & BUSINESS DEVELOPMENT, EMAMI LIMITED
It's a not exciting but thoughtful budget to work on future actions rather than hopes or populism. There is nothing radical but has given some directional clarity particularly on GAAR, DTC, GST and other priorities. Given the economic, social and political constraints, he has presented balanced action plan rather than a budget.
FM has tried to promote agriculture, infrastructure and manufacturing. It would help increase the disposable income particularly to rural and low income group. Action plan with GST is another good step which was long overdue. GST implementation would help the organized FMCG sector as it would reduce the anomalies and administrative hassles besides restricting the tax pilferage by unorganised sector.
TARUN KATIAL, CEO, RELIANCE BROADCAST NETWORK LIMITED
The budget brings good news for the radio industry, with phase III poised to create optimal reach for the medium. Other benefits like news, networking, current affairs and sports, multiple frequencies etc. will add the necessary fillip to further fuel listenership growth through reach and content diversification and will also drive profitability and revenue through cost optimization. With deeper penetration, radio can play a key role as a catalyst of social transformation through partnership for CSR initiatives, social causes and Government initiatives, as it reaches where no other medium can because of literacy and cost issues. With expansion to 300+ cities, it stands to reach 90% of the Indian population, making it truly, a common man’s medium
RANJIT SHAHANI, PRESIDENT OPPI AND VICE CHAIRMAN & MANAGING DIRECTOR, NOVARTIS INDIA
We were hoping the budget would breathe some life into the economy. The expectations of a big bang announcement to restart the economy were belied – expectations were high. Given what the market was grappling with there is a dearth of big ideas.
On the other hand it is a responsible budget given the fact the fiscal deficit is being brought down from 5.3% to 4.5%. The allocation of Rs 37,330 crore to the Ministry of Health and Family Welfare is welcome, particularly the increase of 24.5% over the revised estimates for the new national health mission. Innovation seems to have got some attention with the setting up of the Indian Institute of Biotechnology at Ranchi and the allocation of Rs 200 crore to the Ministry of Science and Technology to help scale up innovations and make them available to the people.
P BALAJI, VP AND MANAGING DIRECTOR, NOKIA INDIA
The Government’s decision to keep concessional excise duty of 1% intact on mobile phones in the sub Rs 2000 category is welcome. However, we would request the Finance Minister to roll back excise duty increase on mobile phones beyond Rs 2000, as mobile phones are the primary mode of access to information and services; a tool for learning, development and income generation for the youth and non urban consumers. He added, it is likely to increase sale of grey, unbranded sub standard handsets which is not good for the consumer, industry and exchequer.
TULSI TANTI, CHAIRMAN, SUZLON GROUP
We believe this is a realistic budget focussing on what is necessary and achievable in the current environment. The Finance Minister focused on the need of the hour: maintaining fiscal prudence, creating a positive investment climate, prioritizing government spending on education/HRD and food security, and sending a clear signal on the tax reforms.
Looking at the macro picture, the Finance Minister has taken a balanced path, providing the right mix of policies for navigating domestic and global challenges. I believe this is a major step forward in putting India back on track towards eight per cent growth in medium term.
TAKAYUKI ISHIDA, MD& CEO, NISSAN MOTOR INDIA
The budget is a “budget in motion” as it continues to focus on growth in predominantly primary sectors like agriculture, infrastructure and education. This growth will in turn support the growth in other sectors including the automobile industry.
"We are very happy about the investment allowance of 15 per cent for investments above Rs 100 crore as a tax incentive. We stand to benefit from this as we have plans to expand our operations in India".
The Chennai - Bengaluru Industrial Corridor will play an important role in terms of logistics infrastructure for companies like ours which are present in the said region.
The excise hike for SUV will not have a drastic impact, it is most likely to distinguish the price barometer between sedans and SUVs even more clearly than ever before.
HARIT NAGPAL, PRESIDENT - DTH OPERATORS ASSOCIATION OF INDIA, MD & CEO, TATA SKY LTD
The DTH industry is already paying 32% of its revenue as taxes. At a time like this, when the government’s digitisation mandate is entering its 2nd phase, the industry requirement is many times normal and there is no local manufacturer of repute who can deliver quality boxes in such quantities. Therefore, this increase seems out of place and in all fairness should be reversed.