Ahmedabad, 10 July, 2014

Sanjay Lalbhai, CMD, Arvind Limited

The first budget presented is holistic in approach covering all sections of society, focussing on Education, healthcare, agriculture and taking measures to improve savings which is important to drive economic growth.

There are no reversal and budget provides continuity but with clearly targeted schemes, with clear goal and objectives thus improving over all quality of spends.

No changes in tax rates were expected except where corrections were required. There no changes in duty structure for Textile ector. Apparel exporter can now import 5% duty free accessories & trims against 3 % earlier.

Mr. Alok Sanghi
Director, Sanghi Industries

The new government had to focus on two primary issues of growth and fiscal discipline, which I believe, they have been able to address in this Budget. For addressing low growth, the budget has focused on road, ports, housing projects and development of smart cities. To shield common man from high inflation, FM has ensured that disposable income in their hand increases, which will lead to spurt in overall demand and savings in the economy. Overall focus on infrastructure development and measures taken to restart stalled projects would ensure that demand is likely to be revived soon, which is positive news for cement sector as well.

Despite being at the Centre for only around two months, FM has sent positive signal and intentions through this Budget. We believe, the measures taken to control fiscal deficit and boost growth will definitely work helping economy on high growth trajectory.

Mr. Bhupendra Vyas-
Chief Operating Officer, Asian Granito India Ltd

“Overall it is a good attempt by FM to balance the growth by focusing on priorities including rural development, healthcare, education, power and housing sectors, women safety. Increasing limits of personal tax exemption and 80 C by Rs. 50,000 each will give much needed relief and also boost confidence of individual tax payers and small investors.

Allocation to housing and construction sector, developing 100 smart cities and focus on creating rural infrastructure are positive indicators for the Indian ceramic industry and will help boost the demand for the industry.

FM’s proposal of investment allowance of 15 percent for 3 years to a company that invests more than Rs. 25 crore in any year in new plant and machinery will encourage new investment and help generate new employment opportunities.”

Mr. Arjun Handa
Managing Director & CEO, Claris Lifesciences

The budget has drawn some broad strokes on the canvas showing the governments intent in the coming years. The budget has given additional funds to middle class and the senior citizens, provided assurances to manage the fiscal deficit and has shown the intention of the government to create opportunities for new investments. Overall this was a positive budget considering the fact that this government has been in power for about a month only.

Mr. Achal Bakeri
Chairman and Managing Director, Symphony Ltd

“Finance minster in the first budget of Modi government has put sincere efforts to balance the fiscal prudence and growth agenda. FM in his budget speech has emphasised on need to revive growth in the manufacturing sector which is barometer for the economy and has announced various initiatives to encourage investment and employment.

This time special effort is put on training, skill creation to ensure employability for the manufacturing sector. FM’s proposal of investment allowance of 15 percent for 3 years to a company that invests more than Rs. 25 crore in any year in new plant and machinery will encourage new investment and help generate new employment opportunities.

Further clarity on the introducing a Goods and Services Tax (GST) will go a long way in boosting confidence among business community. GST will streamline the tax administration, avoid harassment of the business and result in higher revenue collection both for the Centre and the States.”

Mr. Rajiv Modi – Chairman and Managing Director, Cadila Pharmaceuticals Ltd

“The Modi government in its first budget has addressed the current challenges facing the Indian economy by taking key measures to stimulate the investment climate, revive growth and create a sustainable growth model. Healthcare has received special attention in the budget and the government has put greater emphasis on providing quality affordable healthcare and strengthening the existing healthcare infrastructure. Setting up of 15 model rural health research centers will be very important in providing access to quality healthcare in rural India.

Strengthening the network of AIIMS and launching new initiatives like Free Drug Service and Free Diagnosis Service are steps in the right direction. The government has taken an excellent initiative in proposing to set up two national institutes for early diagnosis and treatment of TB patients.

Decision to set up new drug testing laboratories and strengthening the 31 existing State laboratories is a noteworthy step which will provide assistance to the States’ Drug Regulatory and Food Regulatory Systems.

We at Cadila Pharmaceuticals, are guided by the vision of our Founder Chairman, Shri I A Modi, who believed in providing affordable medicines for the masses through innovative research & development (R&D) and welcome this budget as a positive step towards nation building”

Mr. Rajesh R. Gandhi,
MD- Vadilal Industries Ltd

Overall Budget seems good as major focus is on overall development. Finance minister has given weightage to almost all sectors and region by providing budget for then. It looks beginning of long term strategy for overall growth.

As such, no major changes seen for Food and Agriculture sector except reduction of excise duty to 6% from 10 % for specified food package industry, which is very positive step for food processing industry. This is should have been extended to all food processing, transporting, marketing machinery also.

Over all target of 7 to 8% G.D.P. Growth with focusing on 4% growth in Agri Sector is very encouraging. Through modern technology, improving storage condition, improving rural environment by giving housing, electric city, drinking water & broad land improved ware housing.

Focus on infrastructure i.e. Road by spending 37,000 crores, Gas pipe line by 85000km through PPP Mode. E network across all govt. Reduce transaction cost by keeping ports open for 24 hours.

Further, Finance minister has also announced that focus on availability of power to every home is really good for industry that are into frozen products which will help increasing the consumption of frozen products across the country.

No change in direct or indirect tax rate and structure except few industry specific but FM has announced that GST will be introduced shortly and DTC will be reviewed which will be interesting to know.

Niranjan Nadkarni—CEO, TÜV SÜD South Asia for your reference:

“The budget announcement clearly indicates that efficient governance and pragmatic development top the government’s priorities for the coming fiscal year. It is heartening to see the budget focuses on the quality of delivery and safety of the citizens of the nation. The Union budget 2014 presented by the Finance Minister is a strong step towards reinstating the faith of the business community and the citizens, who elected this government a few months ago.

In alignment with the governments in developed as well as emerging economies, the Indian government is focusing its efforts to ensure timely delivery, monitor quality and safety across all areas of development ranging from agriculture to aviation. This will not only help existing foreign investors to strengthen their presence in India but also encourage new investments into the country across businesses. It’s time for India Inc. to brace themselves and witness the paradigm shift towards a conducive business climate.

Announcements pertaining to the power and food processing sectors are bound to give them long overdue impetus. The stage is now set for the nation to unravel the potential of its 1.2 bn strong population and we look forward to days of accountable and sustainable growth.”

Jaxay Shay, Credai

Union Budget 2014-15 is a promise to ensure growth and distribute its benefits evenly to all Indians. CREDAI views the Union Budget 2014-15 as ushering in a vision of a modern, confident and above all a responsible India. This is in sharp contrast to the legacy comprising policy inertia and fiscal recklessness. The fiscal strategy of the Budget consists in its bid to revive investment sentiment. In this regard, CREDAI is specially delighted to note that after a lapse of a decade, the Union Budget acknowledges the dual role of housing in both in investments and improving living standards. CREDAI believes that the Union Budget 2014-15 has accorded housing in economic growth a priority equal to that of manufacturing. It would have been consistent with the Budget to grant housing infrastructure status. CREDAI hopes that this would be a reality soon.

2. On the macro front, the Budget aims to restore fiscal discipline. The retention of fiscal deficit target at 4.1% of GDP for 2014-15 in the face of worsening economic fundamentals, a weak monsoon and a crisis brewing in Iraq and a resolve towards aggressive reduction in the years to come, are a proof of this determination. The constitution of Expenditure Management Commission needs to be viewed in the light of this resolve. The reining in of fiscal deficits would mitigate the inflationary pressure on the economy and indirectly encourage investment into the economy from both the domestic and foreign sources.

3. The voluntary restraint on retrospective legislation, the bid to implement Goods and Services Tax and Direct Taxes Code and the provision on advance rulings are measures that would impart a certitude to the tax regime of the country and thus protect investor interest. These are nut and bolt issues in the economic machine and CREDAI is pleased to see that the Government is not shying away from its share of responsibility in addressing the basic factors that have led to the decline in saving and investment rate in the country over the last five years.

4. The emphasis on skill development, promotion of enterprise and improvement of roads, power and digital connectivity are some among many notable measures to improve infrastructure. In so doing, they enable every sector of the economy to play to its potential far better, than the regime of picking up favourites through the budgetary process so characteristic of the past few years.

5. The measures specially aimed at stepping up investments into housing and habitat are highlighted below:

FDI in Housing

• Minimum area to be developed under each project is either 10 Hectares of land for serviced housing plot or apartment projects with a minimum of 50,000 sq.mt of construction.

• Minimum capitalization of US $10 million for wholly owned subsidiaries has been reduced to USD 5 million.

• Projects which commit at least 30% of the total project cost for low cost affordable housing will be exempted from the minimum built up area and capitalization requirements.

Smart Cities

An allocation of Rs. 7,600 crore for Smart Cities.

Housing for All by 2022

NHB gets an allocation of Rs. 4,000 crore for housing for EWS and LIG

Real Estate Investment Trust (REIT)

Pass through of income allowed obviating incidence of double taxation

on REIT would facilitate flow of savings into the real estate sector.

Personal Tax

• Exemption Limit raised from Rs. 2 lakh to Rs. 2.5 lakh.

• Limit for deduction under Section 80(C) raised from Rs. 1 lakh to Rs. 1.5 lakh.

• Deduction on interest on Self Occupied Housing raised from Rs. 1.5 lakh to Rs. 2 lakh.

Swatchh Bharat Abhiyan

Sanitation facilities to cover every household by 2019.

Mr. Pankaj Shah, President, GESIA &
CMD, Global Tech

“This budget has number of provisions, which can indirectly spur the growth of the IT sector. Schemes such as digital India aimed at providing broadband connectivity at village level; National Rural Internet and Technology Mission for services in villages and schools; E-Kranti for government service delivery and governance; integration of all government departments and ministries through E-platform by 31 December, 2014; e-visas at nine airports etc. offers enormous potential for growth of the IT sector. More importantly, application of IT on such a large scale through various schemes will inspire other section of public and private organizations and entities too. So it is also a good sign for us.

Creating Ventura capital Fund of 10000 Cr for MSME will inspire many Product based companies in ICT . Reduction of 4 % custom duty on inputs good for Manufacturing of Personal computers , will boost Local Manufacturing units.”

Mr. Arun Kumar Jagatramka,
CMD, Gujarat NRE Coke Ltd.

On the overall budget

The budget has been pro growth with a social face and the finance minister has tried to do things possible under the present circumstances and the prevailing challenges. The budget has aimed at bringing in rationalisation in taxation and a certainty in tax administration, notable being doing away with retrospective taxation in future. The focus on infrastructure both in national highways and in power sector as well as in urban infrastructure through smart cities is a much welcome step which has the potential to fuel future growth.

On coal and met coke sector

The finance minister has very well addressed the issue of coal linkages for power plants and the need for more coal washeries. He has brought a parity in customs duty on import of all kind of coal to a uniform 2.5%, which would be a great relief from harassment at the ports. However, the increase in import duty of coking coal from 0 to 2.5% would be an added burden of input cost for steel industry as coking coal and met coke would be costlier. The domestic metallurgical coke industry is happy that the finance minister has kept their interest in mind as the import duty of met coke has also been raised similar to coking coal to 2.5%. The industry was however expecting the import duty on met coke to be 5% and hopes that the finance minister would look into it next time.