Budget sets the tone for a new normal, feel experts

PUNE: Industry representatives on Friday said some of the announcements made during the interim budget will become the new normal.


“No government in the future will try to overturn these proposals. If anything, they will try and do more,” said Pradeep Bhargava, president of Mahratta Chambers of Commerce, Industries and Agriculture.

He said that some of the proposals for the rural population and the labour sector were sorely needed, also to maintain social harmony. “Benefits percolating to certain sections of the community, like farmers and the poor are the responsibility of the state and also the stakeholders like the industry. The contrast, if not controlled, will boomerang on the industry. It is important for the industry’s sustainability as well,” he said.

Baba Kalyani, chairman and managing director, Bharat Forge, said the government has done quite well despite the constrained nature of an interim budget. “Within these limitations, the government has chosen the middle path by announcing measures that will positively impact a large cross section of people, who deservedly require relief from the burden of taxation and also addressed issues of agrarian distress and employment, both of which will remain key priorities for any post-election dispensation,” he said.

Manufacturers said the proposal to impose only a 25% tax, irrespective of turnover, on new units should enable more entrepreneurship in the long term. “In the manufacturing sector, a tax rate of 25% for new manufacturing units will give a great boost to capital investments,” said Rajesh Mittal, managing director, Greenply Industries.

In terms of tax breaks and incentives, the industry was not expecting much, given the interim nature of the budget.

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