Last Updated: Thursday, July 10, 2014, 21:54
New Delhi/Mumbai/Kolkata:
Welcoming the Narendra-Modi-led NDA government's maiden Budget 2014-15, industry players said it sets the tone for attaining higher growth trajectory, job creation and attracting investments for an economy grappling with multiple challenges.
"I think the approach of creating a stable business environment to attract investment and boost economic growth, that direction comes across clearly. I am very happy personally by his (Finance Minister Arun Jaitley's) focus on job creation," CII President Ajay Shriram said.
HDFC Chairman Deepak Parekh said: "Infrastructure funding had become a bad word for banks. Banks were not willing to fund. With this move, an out of the box thinking will enable long term lending for infrastructure sector".
State Bank of India chairperson Arundhati Bhattacharya welcomed the pronouncements on the consolidation of banks, saying it should be done in a time-bound manner.
"The budget emphasises a bottoms-up approach to reignite growth," she said.
"The Finance Minister's maiden budget signals, both in sentiment and policy, the new government's intention to drive the next generation of reforms and swiftly put India on a higher GDP growth path," Tata Consultancy Services Chief Executive and Managing Director N Chandrasekaran said.
Y C Deveshwar, chairman, ITC, said, "Within the constraints of time and a challenging economic environment, the Finance Minister has presented a comprehensive budget which addresses some key reforms with a welcome focus on physical and social infrastructure".
Kris Gopalakrishnan, co-founder, Infosys said Digital India project is an important initiative taken by the government to leverage technology to serve citizens better. It will also help grow the domestic IT industry, he added.
"Initiatives to promote entrepreneurship and startup's are also welcome. This will benefit the IT industry since many startup's happen in the IT sector," he said.
Joint chairman of Emami group R S Agarwal said the maiden budget presented by the BJP-led NDA Government is in overall a very good budget, adding that the budget is aimed towards expansion of the country's economy and develop a future roadmap for growth.
Presenting his maiden Budget, Jaitley said the prevailing economic situation presents a great challenge and there was a need to introduce fiscal prudence that will lead to fiscal consolidation and discipline.
Mahindra and Mahindra Director Arun Nanda, however, termed the budget as a "populist budget".
"Looks like it is more of a populist budget. Much of the hype was created but there was disappointment. I personally feel a status-quo type of situation," he said.
K V Kamath, Non Executive Director at ICICI Bank said: "The budget shows that the government is willing to listen and then state that they will act in due course".
Tata Chemicals Managing Director R Mukundan welcomed the budget and said it is a good start by the new government.
"We are not looking at T-20 match. It is a like a series where you have to play step by step and I think they have done right by laying a road map on GST, DTC and also on what the fiscal deficit will be," Mukundan said.
"One of our key priorities was to see a clear course of action to end tax adventurism. The government has tried to address this by promising to not to change any of the tax provisions retrospectively which creates a fresh liability and committing to provide a stable and predictable taxation regime that will be investor friendly and spur growth," said Ficci President Sidharth Birla.
ICICI Bank CEO and MD Chanda Kocchar said the budget has sought to lay out a prudent fiscal path for the country; and address existing issues that have halted infrastructure investment.
"The policy direction is clear, and as the decisions and plans announced today are executed, I am sure the country will move back towards a robust growth path," she added.
Sanjiv Goenka, chairman of the RP-Sanjiv Goenka Group said reduction of fiscal deficit, attracting investments in the manufacturing sector, attracting investments in infrastructure to kick start the economy and restoring investor confidence with a stable and predictable tax regime are the four positive areas in the Budget.
Srei Group Chairman Hemant Kanoria said the budget "has given boost to the infrastructure and manufacturing sectors. The Budget has addressed many issues which will trigger growth. Prima facie, the budget looks progressive in nature".
"The FY15 Union Budget makes a fervent pitch for attaining a balance by creating growth, preserving an ideal level of deficit, and destroying (supply side) inflation," Assocham President Rana Kapoor said.
Terming the budget as "pragmatic and extensive", CII Director General Chandrajit Banerjee said that it "lays out a medium-term vision for the economy and meets industry expectations on growth and employment creation".
Executive Director of Mahindra & Mahindra Pawan Goenka said: "Though there were no big bang announcements, the intent of the budget is clear. I see this budget as a blueprint to the direction the Government will take over the next nine months".
Sandipan Chakravortty, managing director, Tata Steel Processing and Distribution Ltd, in his reaction said it was a long-term budget aimed at increasing employment through a national skill programme and promoting
entrepreneurship.
Terming the union budget positive but largely directional and aspirational, Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biotech major Biocon said: "This Budget is positive but largely directional and aspirational. I was expecting bolder reforms for boosting investor sentiments".
"The pronouncements on the retrospective tax issue, easier FDI rules, jobs creation in manufacturing sector and improving predictability in India's tax regime will improve the investment sentiment in the country. As will measures for addressing the funding needs of small entrepreneurs," she added.
GVK Reddy, Founder Chairman & Managing Director, GVK Power and Infrastructure Limited, views on the budget.
"The assurance to ensure adequate supply of coal for thermal projects, allocation of over Rs 37,000 crore for roads etc indicate the government?s recognition of the fact that a strong foundation of infrastructure can only help realise a country?s economic growth," GVK Reddy, Founder Chairman & Managing Director, GVK Power and Infrastructure Ltd, said.
"Extending of 10 year tax holiday for power companies by March 31, 2017, provides much required predictability for investors investing in power projects. The target of the new government is to provide 24/7 uninterrupted power supply to all homes augurs well for the growth of energy sector in India, Tulsi Tant, CMD Suzlon said in a statement.
PHD Chamber President Sharad Jaipuria said: "The Budget is encouraging on building consumers', investors' and general confidence and aims at enhancing growth, creating additional employment opportunities and containing inflation with the desired focus on garnering much needed investments, both public and private".
Meanwhile, electrical equipments manufacturer IEEMA President Raj Eswaran said the hike in FDI limits in some sectors, infrastructure investment trusts, investment allowance of 15 per cent to manufacturers investing above Rs 25 crore on plant and machinery will boost economic and industry sentiments.
"The budget has ushered in prudent policies in areas like manufacturing, housing, tax concessions for individuals, education that will boost the economy as a whole and create job opportunities," said Anil Rai Gupta, Joint Managing Director at Havells India.
"The budget is forward-looking and has provided fillip to the capital goods, consumer durables and automobile sectors. Kanwal Jeet Jawa, MD, Daikin Air-conditioning India said.
Though the earlier decision to continue the excise duty concession till December 2014 along with the reduction in steel prices and elimination of customs duty on auto components certainly bodes well for the sector," President of Nissan India Operations Kenichiro Yomura said.
Chairman & MD of Bharat Forge Ltd Baba N Kalyani said: "From a Policy perspective, the decision to raise FDI in the Defence sector from 26 per cent to 49 per cent through the FIPB (Foreign Investment Promotion Board) route with management control in Indian hands will provide a boost to domestic manufacturing industry".
"Announcement of investment allowance is a boost for manufacturing sector. The budget should also bring a smile to the consumers with the increased tax exemptions that will leave them with extra disposable income and prospects to invest in white goods," Managing Director of LG India Soon Kwon said.
Wholetime Director at JK Lakshmi Cement Shailendra Chouksey said the Government has very appropriately chosen to focus on housing and infrastructure as a means to kick-start the economy. He said the Cement sector can certainly look forward to revival of growth in its consumption which has been languishing for last 3-4 years at very low levels.
Speaking on behalf of the footwear sector, Managing Director of Woodland Harkirat Singh said the announcement to cut excise duty to 6 per cent from 12 per cent on footwear up to MRP of Rs 1,000 per pair is a welcome move for SMEs and will help provide them with a level-playing field.
The government today announced the launch of a national multi-skill programme -- 'Skill India', that will skill the youth with an emphasis on employability and entrepreneurship.
Commenting on the Skill India initiative, fashion designer Ritu Kumar said: "I welcome the Skill India scheme and look forward to working in a newly motivated environment which is set to encourage the designers, which has been long overdue".
However, Managing Director of Swiss Military Worldwide Anuj Sawhney said: "From the retail sector point of view, the implementation of Goods and Services Tax (GST) is crucial in order to get rid of the bottlenecks the industry is facing and increase efficiency...".
MD & CEO of Hero MotoCorp Pawan Munjal said: "The budget is also an earnest attempt to revive the manufacturing sector by increasing FDI in defence, and by making it possible for a large number of SMEs to gain tax benefits from their investments".
"Finally, for the first time there is an attempt to strongly back start-up entrepreneurship - by setting up a Rs 10,000 crore risk fund," he added.
Reacting to union budget, Suresh Senapaty, Executive Director & Chief Financial Officer of IT major Wipro, congratulated the Finance Minister for delivering the Budget on the dual mandate of kick-starting economic growth and seeding reforms.
"I would like to congratulate the Finance Minister for delivering the Budget on the dual mandate of kick-starting economic growth and seeding reforms while re-affirming election promises within a short span of 45 days of forming the government," Senapaty in a statement said.
PTI
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