New Delhi: India Inc on Monday gave a thumbs up to the measures announced in the Budget to boost rural and infrastructure sectors, saying they will have a multiplier effect on the economy even as it expressed dissatisfaction on the corporate taxation front. The industry was expecting a phased reduction in corporate tax rate to 25 per cent to begin in 2016-17 across all categories.
Terming the Budget as pragmatic and growth-oriented, Hinduja Group of Companies (India) Chairman Ashok P Hinduja said: “The government’s commitment for retaining the fiscal deficit at 3.5 per cent will have sobering effect on the interest rate in general and on the yields of government and corporate bonds in particular. This will place our economy in the double digit growth trajectory.” He also said the amnesty window announced for unaccounted money is a good initiative. “However, tax on dividend above Rs 10 lakh is a big disincentive for promoters/large investors,” Hinduja added.
Adani Group Chairman Gautam Adani termed it a prudent budget with focus on growth and adherence to fiscal discipline. “The focus on improved infrastructure through network of roads, rail, ports and airports will provide impetus for enhanced growth and in turn generate employment.”
Walmart India President and CEO Krish Iyer said: “The Union Budget continues to rightly focus on rural and infrastructure sector. The planned investment in these two critical sectors will not only create jobs but also give impetus to demand generation and economic growth.”
Veteran industrialist and Bajaj Auto Chairman Rahul Bajaj, also gave Jaitley a good rating saying “Overall, I would say (the Budget is) pretty good.” However, Ficci President Harshvardhan Neotia said, “Corporate tax rate reduction was something that we were looking at … a clearer roadmap on how it is going forward… Going forward, we expect some clarity on how the exemptions will be eased out.”
CII President Sumit Mazumder said: “There was a lot of debate when Finance Minister Arun Jaitley talked about reducing it (corporate tax) to 25 per cent. I don’t believe anything has been done on that but he has got a four-year window for it.”
CII President Designate Naushad Forbes lamented that the Finance Minister has not reduced corporate tax at all this year except for very small firms.
Besides, Biocon CMD Kiran Mazumdar Shaw said: “I see no boost to investment in manufacturing. Disappointed to note there is no increased allocation to Science & Technology”.
Expressing disappointment, Mahindra Group Chairman Anand Mahindra tweeted: “In summary, despite our disappointment on the tax on cars, I see no reason for mayhem in the market.” (PTI)
