Will Budget 2014 meet the expectations of India Inc?

India Inc keeps an eye on how the newly formed government meets the expectations and needs of the industry as well as of the economy.
Will Budget 2014 meet the expectations of India Inc?

New Delhi: Amidst, all the assumptions and analysis regarding the upcoming financial budget 2014,  India Inc keeps an eye on how the newly formed government meets the expectations and needs of the industry as well as of the economy. 

Here is an insight to what top retailers of India Inc are expecting from Modi Sarkar.

Vinay Jain, CMD, AVJ Group

Now a stable and full majority led NDA government is at the centre and we expect the inflation to be control in 2014.

The sector is expecting a number of policy initiatives, along with an analysis of FDI rules in housing, REIT. 

Further, the focus of government should be on single window clearance system as it would help boost the sector in long run, tax incentives for affordable housing. 

The government should raise the tax exemption limit for interest payment on housing loan from 1.5 lakhs to 2.5 lakhs p.a. 


The sector must be given an industry status by the RBI, since it is the second largest employment provider in the country. 
The government must scrap the service tax on under construction properties from buyers prospective, as it adds to the overall cost of the property. 

Adding to this, the government must restore ATIB for affordable housing which allowed profits under it not to be taxed at the corporate level.

Off late, increasing inflation has affected the retailers across the country, leading to the demand for a change in financial policy and FDI rules. Further, the real estate sector is expecting a progressive growth from the budget 2014. 

Lalit Agarwal ,CMD V-Mart Retail ltd

Bring people to market by giving them higher disposable income. Retail sector would welcome government’s lowering of individual taxation.

Further, the government can spur growth and ease of business by simplifying tax policy in the form of GST.

It has been a long pending demand and we look forward with keen eyes in this budget.

Shachin Bharadwaj, CEO & Founder at TastyKhana.in 

With new government in place, people have high expectations. As an e-commerce entrepreneur, I am quite optimistic that the new government will put policy making as its first priority. 

The government should aim at smoothening the FDI policies and look including more sectors under the 100% automatic route. A conducive tax environment needs to be created for angel investors and Employee Stock Ownership Plan (ESOPs). 

Also, RBI needs to ease the restrictions on dollar remittances abroad by resident Indians. I believe that a better broadband infrastructure with minimum speeds of internet at 2MBps, a smooth sharing of 3G between Telco’s and maybe some tax holidays on 4G technology  would make wonders for the country’s development. 

Lastly, we need single window clearance system for business setup and compliances; this will significantly improve the business sentiment. 

I believe that the new government has started on the right note and, I hope it can deliver the development it has promised.

Anuj Puri, Chairman & Country Head, JLL India

Indian real estate sector hopes for a transforming budget. With the new government now firmly in charge of steering the country, the Indian economy is perched on the threshold of recovery and growth.

Anticipating encouraging announcements in the forthcoming budget, the Indian real estate industry hopes that the new government will be able to re-establish the country as an economic force and boost consumer and investor confidence. 

We look forward to the announcement of progressive policies pertaining to FDI in real estate, since the sector is in marked need of a more liberalized funding flow. 

Global investors are once again enthusiastically eyeing the Indian market for the immense opportunities it offers. 

There is now a very real possibility of a huge increase in foreign investment inflows, and the budget is definitely the ideal opportunity for taking serious steps to encourage this.

Supam Maheshwari, CEO and Founder, Firstcry.com 

With the new government in place, there is a lot of optimism in the Indian economy. Supportive financial systems and an uncomplicated process in getting clearances and the provision of tax are some of the key expectations for the startup ecosystem to thrive and boom in the country. 
 
I would like to see the new Government allocating sufficient funds for encouraging startup’s with good innovative ideas for building e-economy in India – the way China has done it. I hope that the tax rules are simplified, tax compliances improved and tax litigations lowered. 
 
Being an entrepreneur of a startup, I am looking forward to a relaxed listing norm for e-commerce industry along with an abolishment of the relationship between the output and input services for the purpose of utilization. Moreover, there should also be a provision of refund of service tax for the trading companies since they pay a huge amount of service tax on input services like logistics, marketing etc. 
 
Moving beyond these, I also look forward to the betterment of transportation services like: creating infrastructure for the movement of goods – fast goods train which run from point to point like passenger transport on time, incorporating specialized air freight operators, abolish local tax regimes like Octroi.
 
Vivek Mathur, CEO, Giftease.com 
 
There is an expectation that the government will present a business-friendly budget, but the retail sector as a whole would like to see some firm consumer friendly measures, as consumer sentiment is a big driver of spending, and inflation is putting this under pressure. 
 
While the contentious FDI in multi-brand retail does not look likely in the near term, there is some expectation that FDI in ecommerce may be relaxed. 
 
GST roll out, which is a very long-standing demand of the industry, is unlikely, but some reinforcement of intent and pace would be welcome. Some focus and investment in developing the last mile delivery infrastructure through the postal services would be a great facilitator for ecommerce. 
 
Govind Shrikhande, Customer Care Associate and Managing Director, Shoppers Stop Ltd.  
 
The maiden budget of the new government must focus on taking tough steps to revive the economy and regain consumer confidence.  
 
A concrete GST announcement with milestones will be great for the industry over all. As of now, GST and Service tax on rent are a huge challenge for retailers. Therefore, once GST implementation takes hold we will be able to set it off against service tax on rent, which will give a boost to the industry. It will be a win-win situation for both consumers & retailers. 
 
We hope that the government continues to provide relief on excise duty on branded apparel. If restored, it will be a major setback for this job-creating industry.  
 
Finally, bolstering consumption ought to be on the agenda. If personal taxes are reduced, it will improve consumer sentiment, lead to more spends and spur growth.

 

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