With a slew of measures to combat the slowdown, Finance minister Nirmala Sitharaman tabled the Union Budget 2020-21 in the Lok Sabha. The new tax regime is expected to ensure the better cash flow in the retail businesses and boost start-ups.
Following are the key reactions from the Indian retail industry..
The Union Budget 2020 is aimed at reviving dampened consumer sentiments and announcements on tax incentives on incomes will put consumption back on track. Speaking further on same, Arvind Mediratta, MD and CEO, METRO Cash and Carry India, said, “We welcome government’s move to revive local manufacturing and MSME sector. Tax holidays to start-ups will encourage existing and new entrepreneurs in doing business. The government’s announcement to simplify GST from April 2020 returns will help lakhs of small traders, kiranas and restaurant owners. Being the ‘Champion of Independent Business’, METRO Cash and Carry will work with small businesses in helping them grow and be profitable."
“We welcome the Union Budget presented by Our FM. The budget sheds some positive light for the retail sector. The rate cut in GST will accelerate the demand and consumption in the economy. To add to it, the income tax rate cut will lead to an increase in consumer purchasing power and drive spends,” said Santush Pandde, Head, R City Mall.
Commenting on the Budget 2020 announcement, Sachin Dhanawade, Chief Operating Officer (COO), Retail & Real Estate, Grauer & Weil (India) Limited, said, "The feel-good factor in the budget announcement was definitely the new tax regime that gives more money in the hands of the consumer as it will boost consumption, unless negatively impacted by the revised exemptions."
Speaking on same, Mukesh Kumar, CEO, Infiniti Mall on the budget 2020, said, “The reduced income tax slabs announced in the Budget 2020 will provide some relief to the common citizen. It will help to put more disposable income in their hands thus enabling them to purchase more and improve their standard of living. We believe this inflow of cash in retail will boost the sector significantly. We were looking forward to some reforms in the retail sector, nevertheless, this has been a good budget.”
Boost for consumer durable segment
Budget 2020 is a vital steps towards establishing a robust, ecosystem for domestic manufacturing while also giving a boost to exports. With the NIRVIK scheme, the SMEs stand to gain financial stability. The companies can look forward to seamless implementation of this scheme to scale up manufacturing and developing an export hub.
Manish Sharma, President & CEO, Panasonic India & SA, Chairperson -Electronics & Manufacturing Committee, FICCI; Co-Chair FICCI Energy Storage Committee, said, “Our honourable FM’s second Union Budget will help iron out some concerns for the Indian economy related to manufacturing, ease of doing business leading to make in India. From a consumer electronics industry perspective, the decision to encourage domestic manufacturing of mobiles and electronic goods in India is a welcome move while a definitive timeline would have helped further boost the industry sentiments.”
Speaking on same, Nevil Patel, Managing Director, Orpat Group, said, "The Union Budget 2020 is out and there are some useful propositions of new schemes to generate and boost employment in the country. Make In India is the need of the hour and import of cheap Chinese goods in India has brought downturn in the economy.
Government's move to increase customs duty on 300 items and the proposition of a new scheme for promoting the manufacturing of electronic item in the country are the steps in right direction."
Boot for start-ups
Budget 2020 is pro startup as lot has been announced to nurture upcoming ventures. Speaking on same, Saroja Yeramilli– CEO and Founder, Melorra, said, “The creation of an investment clearance cell for managing everything end to end including offering investment assistance to upcoming ventures is encouraging. It will motivate budding entrepreneurs and make processes easier for them. The government has also raised the limit for tax on profit for startups from INR 25 crore to INR 100 crore and the decision to tax ESOP at point of sale is a welcome one for startups. Another good move has been the push for a digital economy through various technologies to enable the seamless delivery of services for different sectors.”
Echoing the same, Kunal Bahl, CEO & Co-founder, Snapdeal asserts “Overall, Budget 2020 is a thoughtful weaving together of specific proposals to tackle varied issues. Measures to improve access to finance for MSMEs and reduced taxation for the middle-income segment are welcome steps. Boosting physical infrastructure, expanding digital connectivity and growing use of technology in government functioning are important building blocks for the long-term growth of the Indian economy.”
“The Budget 2020 would lead to creation of a New Aspirational India, anchored around Agriculture, Health and Education. This Budget, seeks to strengthen grassroots of the economy with its positive push towards creation of a strong agriculture infrastructure, which will give a big push to India’s rural sector. This is a budget that unveils the roadmap to Prime Minister’s vision of $ 5 trillion economy by 2024-25 by reinvigorating the hopes of both urban and rural consumers.” Mr Krish Iyer, President & CEO at Walmart India.