Budget 2016

All eyes are set on the Union Budget 2016 announcement on February 29. There are expectations that Finance Minister Arun Jaitley will announce the tax and regulatory policy structural reforms to boost growth and investments. Policy and tax transformations expected to result in increased investments in various sectors leading to success of ‘Make in India’ initiative and ease of doing business in India, phasing out of exemptions/ incentives vis-à-vis industry needs and rationalisation of tax rates and removal of double taxation.

The Budget session will commence today and will focus largely on the financial business of the government. The upcoming Budget will be citizen-centric with a focus on farm sector, job creation and eradication of poverty, minister of State for Finance, Jayant Sinha has said. This will be the second full-fledged Budget of the ruling NDA government.

Tulsi Tanti, CMD, Suzlon Group, said, “ Today, India is an increasingly attractive investment destination, and the 2016 Union Budget should undertake reforms necessary to support this momentum. It is equally important that various initiatives like Goods and Service Tax (GST), clarity about capitalisation of banks and other reforms be undertaken on fast-track basis. Renewable energy offers a $200 billion opportunity and can be very beneficial to national economic development. The upcoming budget should, hence, pay special attention to facilitating efficient financing in the renewable energy.”

Sharing his expectations, Venu Vinod, MD, Cybercity Builders & Developers, said, “The government has taken positive steps with the announcement of smart cities, increase in FDI and “Housing for all-2022” that have boosted the sentiments of both buyers and developers in India. As developers we seek that the real estate sector should be accorded the industry status allowing better enabling provisions to help trigger the growth in the real estate sector, open avenues for funding of projects from Banks, Financial Institutions, Pension and Insurance funds at cheaper rates to spur the growth. With the growing young Indian population, it is imperative that the government comes out with enabling policies for first time home buyers.”

Debasis Chatterji, CEO, Netxcell, said, “The common man is not happy today and the public does not understand the complicated story of fiscal and financial policy. So, inflation especially with the price of daily food items and commodities should be under control. We need more jobs, roads, services, stable power, sanitation plus safety and security. It is high time to understand that only micro-industries and startups can generate lots of jobs in the tier two and three cities. Proper planning and road map for telecom operators so that they see a clear road forward for the next ten years to invest in back end infrastructure to avoid rampant call drops.”

“Having made huge promises, the public in large is expecting functional policies from the government along with lowering of subsidy burden, wider tax net, supportive policies for the growth of industry and rational allocation of funds. Also, some key points present in the agenda of the current government, should be part of the Union Budget in order to revitalise investments in the current scenario by diverging people’s savings towards financial assets and invigorating the Indian economy on a priority basis,” pointed out, Jayant Manglik, president, Retail Distribution, Religare Securities.

Manglik added, “Gems and jewellery industry expects special turnover tax regime for diamond industry, interest subvention to boost exports and PAN card requirement for transactions of above Rs 5 lakh instead of current Rs 2 lakh. Budget wishlist also includes relaxing restrictions on gold import. Import duty on gold and silver may be slashed from current 10 per cent in order to boost the gems and jewellery industry. However import duty on jewellery can be charged higher.”

On the expectations in the electronics hardware space, Arun Singh, senior economist, Dun & Bradstreet India, said, “The Budget should ensure parity in duty and tariff rates applicable to consumer electronics and appliance, in line with other Asian countries. Incentive schemes to encourage manufacturing of LCD panels, FAB, and other products that make up electronic hardware eco-system.”

Sanjay Kumar, chief investment officer, PNB MetLife, said, “The Budget is likely to be a prudent mix of steady infrastructure investment, thrust on rural India, boost to urban consumption and impetus to financial savings. After two consecutive years of poor monsoons, the government is likely to give a bigger thrust to agriculture-related schemes, rural infrastructure (irrigation, storage facilities and rural road connectivity) and crop insurance scheme. This, in turn, will provide some fillip to an otherwise weak rural demand.”