InvestorQ : What are some of the major expectations from the Union Budget that industry has from the Finance minister?
Anjana Aiyar made post

What are some of the major expectations from the Union Budget that industry has from the Finance minister?

Arya Nanda answered.
3 years ago

Prominent industrialists have specifically asked the finance ministry kick-start economic growth by encouraging private investment and also by improving the current regulatory environment. In addition, the industrialists have also asked the FM to focus on making the Indian industry and service sector competitive. Here are some key takeaways.

· Industrialists suggested ways to boost the rural economy by boosting consumption by giving spending and tax sops to boost rural demand. That is expected to make a bid difference to sectors like automobiles, two wheelers, tractors and FMCG products.

· Prominent industrialists have also given suggestions to the IBC (Insolvency and Bankruptcy Code) with focus on ensuring and facilitating faster mergers, acquisitions and demergers processes

· There were also suggestions to reduce time for FDI approval; structural changes in laws for effective and stable business environment. The feeling also was that “East of Business” was not living up to its name.

· There was also a call for facilitating investments of capital for building infrastructure as well as a call for capital expenditure for infrastructure to boost economy

· In the lines of many in the steel and tyre industry have been saying, Indian businessmen also asked for preventing predatory pricing and dumping in India. This is something that had become a sore point for many industries in India.

· There was also a call for ensuring adequate liquidity for NBFCs with focus on rural economy and ways to increase consumption in economy. The request was to make the partial guarantee scheme more meaningful.

· CII President, Vikram Kirloskar, suggested that scrapping draconian laws and procedures would address the trust deficit within industry. He emphasized that any wilful defaults should be dealt with firmly but suggested that penalty should be enough to deal with inadvertent non-compliance.