 "Budget 2017 will strengthen economy from grass roots: India Inc")
India Inc today said the budget builds a positive sentiment that government will take all steps to boost growth with its focus on rural economy and infrastructure but rued no cut in corporate tax for large companies.
"Overall a safe and balanced budget, which could have been bolder. Good allocations for rural development, affordable housing, agriculture and infrastructure sectors. Some incentives for MSMEs but corporate tax reduction linked to job creation and investments was missing which would have spurred much needed private sector investment.
"Removal of FIPB is a good move which will ease FDI inflow. Sadly no impetus for exports, science & technology, manufacturing sector which would have boosted the Make in India initiative," Biocon CMD Kiran Mazumdar-Shaw said.
However, while the welcoming reduction in income tax for smaller firms to 25%, a section of India Inc rued that larger firms did not get relief in the form of lower corporate tax.
"This Budget would tremendously strengthen the economic muscle of the country. It is directionally correct, fiscally prudent and strengthens the governance fabric of the nation," FICCI President Pankaj Patel said.
Softening the demonetisation blow, the Budget for 2017-18 today halved the tax to 5% on income up to Rs 5 lakh but proposed a new surcharge of 10% on income between Rs 50 lakh and Rs 1 crore, and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors.
Finance Minister Arun Jaitley presented a historic Budget in which the railway budget has been merged. He retained the 15% surcharge on taxable income above Rs 1 crore.
He also slashed the income tax for smaller companies with annual turnover up to Rs 50 crore to 25%, to make MSME companies more viable and also encourage them to migrate to company format.
"While the reduction of corporate tax for the small and medium enterprises with turnover less than Rs 50 crore, is a welcome move, the India Inc was expecting it for large firms as well," Assocham President Sunil Kanoria said.
Mahindra Group Chairman Anand Mahindra tweeted that he was "elated" by the reforms in political funding, merging of the rail budget, an abolition of FIPB and removal of plan/non-plan labels."
CII Director General Chandrajit Banerjee said, "Overall, the Budget builds positive sentiments among Indian industry and overseas investors that the Government would remain on the path of fiscal prudence while taking all possible measures to boost growth".
PHD Chamber of Commerce President Gopal Jiwarajka said, the government has provided a balanced budget to strengthen the economy from grass roots. Tax benefits to small taxpayers, MSMEs and infrastructure status to affordable housing are encouraging and would pave the way for a higher growth trajectory.
"Budget unleashes multiple instruments to revive demand and encourage investments, while also prioritising the needs of vulnerable sections of society," CII President Naushad Forbes said.
"The Budget proposals to increase spends in rural areas, infrastructure development, poverty alleviation as well as the agricultural sector should provide a growth impetus to the Indian economy and a pickup in consumption demand," ITC Chairman Y C Deveshwar said.
"The Budget is a game changer and continues to focus on rural, agriculture and infrastructure sector with an aim to give a boost to the formal economy...Investment in these sectors will not only create much-needed jobs but also spur consumer spending and boost economic growth. Fiscal deficit too has been contained very well," Krish Iyer, President & CEO, Walmart India said.
"The government has given much-needed infrastructure status to the affordable housing along with other incentives like a change in measurement methodology from build-up area to carpet area and extension of an affordable housing scheme to 5 years from 3 years. The infrastructure tag will bring down the cost of funds for developers and thus, further push down prices for home buyers," DLF CEO Rajeev Talwar said.
"Overall, this is a responsible, steady budget; the Government has stayed its course on facilitating faster growth, while continuing the focus on fiscal consolidation. It is largely positive for the FMCG sector, given the strong emphasis on rural stimuli," Sunil Duggal, Chief Executive Officer, Dabur India Ltd.
"Lowering tax on MSMEs is a welcome step that would provide a much-needed fillip by the creation of jobs and putting more money in their pockets in all sectors including pharmaceuticals," Glenmark Pharmaceuticals CMD Glenn Saldanha said.
"Infrastructure status to affordable housing comes as a landmark announcement for consumers and real estate industry. A long-standing demand of the sector, the government has realised that housing and infrastructure can be two pillars to increase GDP and accelerate economic growth," Brotin Banerjee, MD and CEO, Tata Housing Development Company said.
SAIL Chairman P K Singh said he expects that domestic demand scenario of steel will "improve handsomely" post the Budget announcements as they are expected improve the momentum of infra, rural and MSME sector for which steel is a key requirement.
"We are quite positive about the focus on rural infrastructure development as we see a scope to promote rural tourism even further, especially for inbound tourists. However, we need to know more about what all will be covered in five special tourism zones to be set up in partnership with states," Peter Kerkar, Director Cox and Kings said.
"Overall a safe and balanced budget, which could have been bolder. Good allocations for rural development, affordable housing, agriculture and infrastructure sectors. Some incentives for MSMEs but corporate tax reduction linked to job creation and investments was missing which would have spurred much needed private sector investment.
"Removal of FIPB is a good move which will ease FDI inflow. Sadly no impetus for exports, science & technology, manufacturing sector which would have boosted the Make in India initiative," Biocon CMD Kiran Mazumdar-Shaw said.
However, while the welcoming reduction in income tax for smaller firms to 25%, a section of India Inc rued that larger firms did not get relief in the form of lower corporate tax.
"This Budget would tremendously strengthen the economic muscle of the country. It is directionally correct, fiscally prudent and strengthens the governance fabric of the nation," FICCI President Pankaj Patel said.
Softening the demonetisation blow, the Budget for 2017-18 today halved the tax to 5% on income up to Rs 5 lakh but proposed a new surcharge of 10% on income between Rs 50 lakh and Rs 1 crore, and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors.
Finance Minister Arun Jaitley presented a historic Budget in which the railway budget has been merged. He retained the 15% surcharge on taxable income above Rs 1 crore.
He also slashed the income tax for smaller companies with annual turnover up to Rs 50 crore to 25%, to make MSME companies more viable and also encourage them to migrate to company format.
"While the reduction of corporate tax for the small and medium enterprises with turnover less than Rs 50 crore, is a welcome move, the India Inc was expecting it for large firms as well," Assocham President Sunil Kanoria said.
Mahindra Group Chairman Anand Mahindra tweeted that he was "elated" by the reforms in political funding, merging of the rail budget, an abolition of FIPB and removal of plan/non-plan labels."
CII Director General Chandrajit Banerjee said, "Overall, the Budget builds positive sentiments among Indian industry and overseas investors that the Government would remain on the path of fiscal prudence while taking all possible measures to boost growth".
PHD Chamber of Commerce President Gopal Jiwarajka said, the government has provided a balanced budget to strengthen the economy from grass roots. Tax benefits to small taxpayers, MSMEs and infrastructure status to affordable housing are encouraging and would pave the way for a higher growth trajectory.
"Budget unleashes multiple instruments to revive demand and encourage investments, while also prioritising the needs of vulnerable sections of society," CII President Naushad Forbes said.
"The Budget proposals to increase spends in rural areas, infrastructure development, poverty alleviation as well as the agricultural sector should provide a growth impetus to the Indian economy and a pickup in consumption demand," ITC Chairman Y C Deveshwar said.
"The Budget is a game changer and continues to focus on rural, agriculture and infrastructure sector with an aim to give a boost to the formal economy...Investment in these sectors will not only create much-needed jobs but also spur consumer spending and boost economic growth. Fiscal deficit too has been contained very well," Krish Iyer, President & CEO, Walmart India said.
"The government has given much-needed infrastructure status to the affordable housing along with other incentives like a change in measurement methodology from build-up area to carpet area and extension of an affordable housing scheme to 5 years from 3 years. The infrastructure tag will bring down the cost of funds for developers and thus, further push down prices for home buyers," DLF CEO Rajeev Talwar said.
"Overall, this is a responsible, steady budget; the Government has stayed its course on facilitating faster growth, while continuing the focus on fiscal consolidation. It is largely positive for the FMCG sector, given the strong emphasis on rural stimuli," Sunil Duggal, Chief Executive Officer, Dabur India Ltd.
"Lowering tax on MSMEs is a welcome step that would provide a much-needed fillip by the creation of jobs and putting more money in their pockets in all sectors including pharmaceuticals," Glenmark Pharmaceuticals CMD Glenn Saldanha said.
"Infrastructure status to affordable housing comes as a landmark announcement for consumers and real estate industry. A long-standing demand of the sector, the government has realised that housing and infrastructure can be two pillars to increase GDP and accelerate economic growth," Brotin Banerjee, MD and CEO, Tata Housing Development Company said.
SAIL Chairman P K Singh said he expects that domestic demand scenario of steel will "improve handsomely" post the Budget announcements as they are expected improve the momentum of infra, rural and MSME sector for which steel is a key requirement.
"We are quite positive about the focus on rural infrastructure development as we see a scope to promote rural tourism even further, especially for inbound tourists. However, we need to know more about what all will be covered in five special tourism zones to be set up in partnership with states," Peter Kerkar, Director Cox and Kings said.