Reactions to the Union Budget 2016-17

The Union Budget 2016-17 has evoked justifiable reactions from the business industry The Dollar Business Bureau  

India Inc.'s reactions on Union Budget 2016-17    

 

Anand Mahindra on Twitter

"In summary, despite our disappointment on the tax on cars, I see no reason for the mayhem in the market."

Harshvardhan Neotia, Chairman, Ambuja Neotia Group

"The Budget is in line with the agenda of pushing the economy forward. There is an attempt towards simplification in tax system which is laudable. It's a good budget with good emphasis on infrastructure".    

Jyotsna Suri, Immd. Past President, FICCI & CMD, Bharat Hotels

"It's a pro-country and pro-development budget as we had expected it to be."           

Pankaj Patel, CMD, Cadila Healthcare

“Infrastructure push and agriculture sustainability are the two main highlights of the budget and will give a great push to the economy”.         

  [caption id="attachment_42989" width="150"] S. K. Roongta, Non-Executive Chairman, Bharat Aluminium Co. Ltd. (BALCO)[/caption] S. K. Roongta, Non-Executive Chairman, Bharat Aluminium Co. Ltd. (BALCO)

“There is a renewed interest in infrastructure in the Budget. There is nothing visible as such directly in manufacturing in FM's speech but indirect links are there through affordable housing, infrastructure and other schemes which will give it a boost”.

  [caption id="attachment_43038" width="150"] Dr. Kavita Gupta
Textile Commissioner
Ministry of Textiles, GoI[/caption] Kavita Gupta, Textile Commissioner, Govt. of India

“It has the capability to increase the purchasing power and we can say that the budget is a very promising one”.

   [caption id="attachment_37146" width="150"] R. K. Dalmia, Chairman,
TEXPROCIL[/caption] R. K. Dalmia, Chairman, TEXPROCIL

“The budget seems to be a positive one. It would help the industry on a larger scale. For the textile industry, the duties had been brought down, which is a very positive step. However the 2% excise duty on branded garments could bring about compliance issues. This happened last time during Pranab Mukherjee’s tenure and there were compliance issues. So the government has to take this issue into account”.

  [caption id="attachment_42800" width="150"] Harsh Pati Singhania,
VC & MD, J K Paper[/caption] Harsh Pati Singhania, VC & MD, J K Paper

"Exports will be detailed in the EXIM policy which will come out later but he has specified about giving a thrust to exports let’s wait to see the details. Manufacturing should get a boost based on how well infrastructure provisions are executed. So if infrastructure growth really happens, you should see some improvement in the manufacturing side. The concern on manufacturing should be to see what kind of rationalization has been done in terms of excise duties etc. He has mentioned a great thrust on simplification of taxes, litigation lot of tax litigation goes on in the country so he has attempted to reduce it. That seems to be his thrust. The budget seems to be growth oriented and progressive and we will see how the cascading effect is”.

  [caption id="attachment_42801" width="150"] Rajan Bharti Mittal, VC & MD, Bharti Enterprises[/caption] Rajan Bharti Mittal, VC & MD, Bharti Enterprises

“It is a growth oriented budget. We have seen huge spending both in social as well as physical infrastructure - as announced by the FM today. The tax regime has been quite emphatic in saying how he wants to manage the tax regime. He has made it clear saying that there will be no retrospective taxes and also given a way out for the existing situation going around in couple of cases. So he was very clear and emphatic as to how the tax guys will deal with the industry - that is if there are dispute resolutions then who is going to manage them. With regard to corporate tax I would say that corporates were hoping that as they have set a roadmap for 2019 to bring it to 25% while he spoke of the exemption being taken off on a certain dateline, no tax relief was given beyond Rs 10 lakh that was spoken about. Exports are challenged both for domestic and global reasons. I think as the global indices are getting better, Indian exports should also improve”.  

  [caption id="attachment_42802" width="150"] Puneet Bansal, Managing
Partner, Nitya Tax Associates[/caption] Puneet Bansal, Managing Partner, Nitya Tax Associates

 “Market is bearish but it may not be a true reflection of Budget 2016 which is well played by our Finance Minister. Amid financial constraints, global slowdown and high expectations, Budget 2016 has been positive in many ways and still balanced. On the Indirect Tax front, the positives include retaining the current rate of Service tax, rationalization of Cenvat credit scheme, clarity of ambiguous issues like taxation of software and RMC, removal of 13 cesses and addition of 11 benches of Tribunal to reduce litigation. On the contrary, introduction of Krishi Kalyan cess on services and Infrastructure cess on cars is regressive. Likewise, the increase in limitation period for issuance of notices will burden the industry. Overall, the budget seems to be in right direction”.

  [caption id="attachment_42799" width="150"] Ravinder P Singh, Director – Solutions Strategy & Business Development, IoT, Smart
Cities & Digitization,
Dell India[/caption] Ravinder P. Singh, Director – Solutions Strategy & Business Development, IoT, Smart Cities & Digitization, Dell India

 “Today’s announcement of Digital Literacy Mission Scheme in rural areas is a key stepping stone to achieve next level of human capital transformation. India is going through a massive transformation with Smart Cities, Make in India and Digital India initiatives that will have far reaching impact in the growth of urban and rural India. Technology is not only the backbone for these initiatives but also a critical stakeholder for the success and sustainability of these programs.

We welcome the government's initiative as this will help in building digital infrastructure from the ground up that will help India grow much faster and better to enable economic growth. Dell being a global leader in ICT Technology and end user computing, we consider this as a good opportunity to work with both the government and private sector and be an active player in this journey. We are committed to support these initiatives by providing the next generation of technology solutions and being the digital architects for such programs”.

  [caption id="attachment_42803" width="150"] Chandrajit Banerjee, Director General, CII[/caption] Chandrajit Banerjee, Director General, CII 

“The Finance Minister presented a well-rounded package of reforms and growth-oriented measures in the Union Budget 2016-17. The Budget proposals addressed issues in nine critical areas ranging from agriculture and the rural sector to financial sector and banking. Given the current global context of slowing growth and threat of financial turbulence, the Budget needs to be commended for giving a boost to growth and investment without disturbing the path for fiscal consolidation. In line with recommendations made by CII, the Budget has announced critical interventions in areas such as agriculture, infrastructure, education and skills. Financial sector reforms have been taken forward including a plan for revitalising public sector banks. A lot of emphasis has been given to accelerated implementation of direct benefits transfer through the widespread use of JAM trinity, so that subsidies reach the intended beneficiaries. The well-thought out interventions presented in the Budget make it a growth and development oriented Budget”.

February 29, 2016 | 07:14pm IST.