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Budget Reactions: Mr. Sudhir Mehta, President, MCCIA and Mr. Prashant Girbane, DG, MCCIA…

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On Macros- We thank the Finance Minister for ensuring policy certainty and taxation stability in this budget. That is very important for encouraging confidence of businesses and the investors. In an environment of Consumption, Private Investment and Exports not yet picking up to the normal levels, Government had to spend and we are glad that the expenditure budget is at a high of Rs 34.8 lakh crore. It is especially encouraging to see a higher component of it being budgeted for the capital expenditure that delivers multiplier impact for growth.

On Divestment- For the tax rates to be stable, it’s important that we have more revenues from divestments and asset monetization. Divestments in PSUs and specifically in PSBs and LIC are very welcome. It will raise resources while helping the sectors become even more efficient.

On Industry- Positive announcements for the industry include-FDI ceiling increase in Insurance industry, new parks for textile industry, more than doubled budget for MSMEs ministry to support MSMEs with schemes including the ones for credit guarantees and interest rate subventions.

On Auto Sector- We have been demanding Auto Scrappage policy for a long time. Voluntary Auto scrappage policy would mean old (15 years for CVs and 20 yrs for PVs) would need to be scrapped and thereby creating demand for new vehicles which will lead to additional production that sustains and creates additional jobs in the auto sector. It also helps in reducing pollution, thereby helping the environment. By some estimates about 28 million vehicles could go off the roads by 2025.

On Import Duties on Metals- Reduction in custom duties on steel, alloys and various metals and tax relief to recyclers to a certain extent helps lessen the burden of increased raw material (primarily metal) prices in the past couple of months, especially for the MSMEs.

On Ease of Doing Business- Decriminalization of offences in LLP Act 2008 after decriminalizing some of the offences of Companies Act 2013 demonstrates continuity in enabling the ease of doing business.

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