Union Budget 2016: What's in store for the Retail Industry

With the Union Budget 2016-17, Prime Minister (PM) Narendra Modi and Finance Minister (FM) Arun Jaitley have come a step closer to promoting infrastructural and digital growth, say the retail community.

Mixed responses for Consumer durable and home appliances industry: VIDEOCON
The finance minister presented a balanced budget with a focus on infrastructure and agriculture sectors. By keeping the fiscal deficit target to 3.5% of the GDP, the budget addresses long term positive impact on businesses, says Anirudh Dhoot, Director, Videocon, adding that: “For consumer durable and home appliances industry specifically, the budget brings mixed responses. While the focus is more on dispute resolution and simplification of provision, the voluntary income disclosure will dampen the market. The government has lowered the corporate tax for new manufacturing units at 25 per cent with a view to promote industrial activity and generate jobs. With regard to small units having a turnover of Rs. 5 crore, the corporate tax rate has been reduced from 30 per cent to 29 per cent. However, there is no relief on the corporate tax for big manufacturers.”
Government has stressed on GST implementation and proposed changes in customs duty to push ‘Make in India’ initiatives which is aimed at improving the overall business environment.

Keeping the fiscal deficit at 3.5% and yet meeting the growth & social objectives is a difficult task: EMAMI GROUP
Aditya Agarwal, Director, Emami Group, says: “Government has been facing many challenges and keeping the fiscal discipline in control is one of the most significant one, especially, when the world economy is passing through major socio-political turbulence.  Keeping the fiscal deficit at 3.5 per cent and yet meeting the growth and social objectives is a difficult task which the Finance Minister has attempted to solve. There are no major negative surprises during these challenging times and that's good about this budget.”
According to him, all the sectors viz. agriculture, infrastructure, oil and gas, realty, rural development, manufacturing, banking and tax reforms have been well addressed. “Focus on infrastructure and rural sector, which are the backbone of the economy and society, provides major impetus to the industries in the long term.  Overall this year’s budget can be termed as a good effort,” he added.

The Government’s commitment to keep fiscal deficit in check very assuring: HERO CYCLES
The Finance Minister has chosen to deliver a budget that charts a new direction to the economy with renewed reforms and resurgence, says Pankaj Munjal, Managing Director, Hero Cycles. He also adds that: “The government’s commitment to keep fiscal deficit in check is a very assuring move so is the focus on improving the ease of doing business. The emphasis on road infrastructure in particular would pave the way to a robust economy as well. At Hero Cycles, we are committed proponents of cleaner modes of transport and in this light the pollution cess on vehicles is an extremely encouraging step.” Overall a mature and well balanced budget designed to ramp up an overall and inclusive growth of the economy, says Mr Pankaj Munjal, Chairman and Managing Director, Hero Cycles.