GCCI, CII Western region, Captains of industries in Gujarat welcome union budget

February 29, 2016
Business Central Government Gujarat

Ahmedabad

Gujarat Chamber of Commerce and Industry (GCCI), western region wing of CII and most of the state based Industries have by and large welcomed the union budged presented by Finance Minister Arun Jaitley today.

Reactions of the presidents of GCCI and Gujarat Chapter of CII and other prominent state based Industrialists is as following-


Achal Bakeri, CMD, Symphony Ltd

“The Finance Minister has set the direction for a balanced and inclusive growth emphasising on agriculture, irrigation, rural economy, farm income, investment in infrastructure, education maintaining fiscal discipline as well as raising social spend. Lot of thrust is given for the priority sector and improving basic infrastructure like road, electricity, port, agriculture sector, rural economy, social sector and employment etc.Tax reforms, focus on ease of doing business, promoting start-ups are some of the welcome steps announced in the budget. Giving more autonomy to PSUs in operation, desire to decrease government stake in the PSU banks even below 50% are step in the right direction. The impetus to Infrastructure, agriculture and education sectors is laudable though the much expected big bang reforms are yet in the waiting. Realistic budget in given constraints.”

Parimal Nathwani, Group President, RIL


Gautam Adani, Adani Group

Mr. Rajiv Gandhi, CEO & MD, Ahmedabad based Hester Biosciences Ltd

“It is no doubt a political budget, partly aimed at correcting a perception that the government is urban-centric. Focus areas are clearly agriculture, villages and infrastructure. This budget has the potential to kick-start an agriculture revolution and transform rural India. Also, there is a special focus on job creation, which is gladdening. We all should welcome the fact that tobacco is more expensive now. All this augurs well for the economy in general.”


Rohit Patel, Chairman, GCCI

“It is an over-all favourable budget as steps are taken to promote MSMEs and startup units. It is probably for the first time that steps to increase the accountability of the tax officials have been taken. On the flip side several steps that we expected in the wake of the slowdown were not addressed. However it is over all good and will also create employment avenues for rural and semi-urban youths in their own areas.”

Mr Sanjay Kirloskar, Chairman, CII Western Region & Chairman and Managing Director, Kirloskar Brothers

” With adequate focus on farming, social sector, infrastructure and fiscal prudence, the Union Budget 2016-17 is broad-based. The target to double farmer’s incomes by 2022 is ambitious and higher allocation for irrigation schemes and crop insurance will positively impact the sector going ahead. Increased thrust on government investments in infrastructure will aid economic growth now that private sector investments are subdued. Substantial enhancement in allocation to Gram Panchayats and municipalities will empower them and help accelerate development.”

Mr Naishadh Parikh, Past Chairman, CII Gujarat State Council & Managing Director, Equinox Solutions Ltd.

” I’m sure India Inc. will give this budget a thumbs up considering it covered many sectors including agriculture, power, infrastructure, manufacturing, services and benefits to many states. It is a futuristic budget and will start the ball rolling for many initiatives including GST which is particularly aiming higher economic growth.”


Mr. Deepak Chiripal, CEO, Nandan Denim Ltd

“The budget is a clear one, with a focused growth trajectory for the next three-four years, broadly in line with the expectations of India Inc.The focus on agriculture, infrastructure, health and education will enhance the social fabric and contribute to equitable growth.Infrastructure is the main theme for this budget and necessary allocation has been given for the rail, road, electricity, port development. Special emphasis and measure announced for ease of doing business, tax reforms promoting start-ups are steps in the right direction. Textile industry didn’t get its due in the budget, further move of bringing small and medium enterprises engaged in garment manufacturing under the ambit of indirect tax will hurt the industry.”

Mr. Devanshu Gandhi, MD, Vadilal Industries Ltd

“This Budget has a few very good positive points. Rural Demand and Purchasing Power that is suffering due to back to back droughts is addressed. Announcement to have Investment in Rural Roads, Irrigation to 28.5 Lac Acres and Organic farming being extended by 5Lac Acers over 3 years aiming to Double Rural Incomes by 2022 are very positive. Possibility of allowing Government stake in PSU Banks to go below 50% with IDBI Bank being Government Bank (but not Nationalized Bank) being 1st off the Block with Strategic Investor being planned is a Good Beginning. Also 25,000 Crore earmarked for Recapitalization of the Banks though not enough but is a step in the right direction. No rise in Fiscal Deficit from stated Goals in Last Budget. This would mean No Inflation Risk. RBI
may be in a position to reduce Interest Rates because of this. Announcement of New Policy in Government Investments including disinvestment and strategic sale is a Good Step as it would help improve the Management, Profitability and Effectiveness of the PSUs apart from helping Government with much needed funds.”


Mr. Dhirendra Singh, CMD, Manpasand Beverages Limited

We welcome the Finance Minister’s announcement on 100% FDI relaxation in food processing sector. This will ensure minimum wastage of agro products and will encourage inflow of investment in cold storage units and allied activities. Apart from generating revenues, this will also help farmers by maintaining a remunerative pricing when there is glut in the market. Allowing overseas investment in food multi-brand retailing will make the sector more competitive, which has been otherwise languishing under infrastructural constraints. This will provide the much-needed impetus to make the sector more organized and cost-effective. Keeping in mind income security for farmers, this new budget ruling will allow food retailers to sell their own food products without any restriction as long as they are locally sourced. Moreover, the focus on developing agri sector, especially a unified Agricultural Marketing e-Platform for wholesale markets, will reap longer-term benefits for all related sectors.

Mr. Rajiv Vastupal, Chairman of FICCI Gujarat State Coucil

The Finance Minister has presented a progressive and economy friendly budget and has put the Indian economy on a strong growth path in the backdrop of global uncertainty. It is a balanced budget with due share given to Agriculture, Infrastructure and Social Sector. His focus on agriculture in the Budget 2016-17 was keenly awaited and will enhance expenditure on the rural and agriculture sectors. Outlay of Rs. 2.8 lakh crore in road and rail infrastructure is going to give a big push to domestic demand for various related sectors.

Budget has also focused on incentives to start-ups and SMEs to boost employment and growth. Change in corporate tax rates and the roadmap over next five years is a welcome step. However, we expected the government to widen tax base, which has not happened. Government has maintained fiscal discipline roadmap despite two bad monsoons, which is commendable. 100% village electrification by May 2018 is a highly commendable move.

N. Chandrasekaran, Chief Executive Officer and Managing Director of Tata Consultancy Services

The FM has delivered a fiscally responsible budget.The extension of SEZ scheme till 2020 and reduced tax at 10% for global revenues generated by India-registered IPR will further energise entrepreneurship. The FM has announced a slew of Digital platforms to connect farmers with their ecosystem. This is a very comprehensive technology-led plan that will significantly bootstrap the Indian heartland into the digital age. Also heartening is the plan to use digital technology across the board from administering taxes to issuing secure education certificates.In summary, the FM has presented a forward looking budget and I will give it a 8/10

Mr. Brotin Banerjee, Managing Director and CEO, Tata Housing Development Company

“The budget announced this year is a progressive budget and indicated the Government’s desire to move towards higher GDP. Thrust on infrastructure and affordable housing is commendable. Greater outlay for construction of road and highways is a definite positive. We may see a lot of traction in the affordable housing space with finance ministry announce a 100 percent deduction in tax on profits and service tax exemption for companies creating apartment upto 60 sq meters. Additionally, Digitization of land records will help in more transparent sale and market-based pricing of land and additional exemption of Rs 50,000 for houses under Rs 50 lakhs will help bring in first buyers to the market.”


Mr. Alok Sanghi, Director, Sanghi Industries Ltd

The government has focused predominantly on the development of agriculture sector, which should aid rural demand generation. I am also glad to see the attention being paid towards building infrastructure especially roads. The infrastructure sector creates highest employment and is imperative for the growth of our country. The government’s focus on start-ups and entrepreneurs is also commendable. The budget presented must be perceived in the context of global economic uncertainties. Commitment towards fiscal consolidation and dispute resolution will send a strong signal to the global investors. These measures will help in tax predictability and improve ease of doing business. The outlook for cement sector looks bright with more than 75% of stalled projects put on track and boosting investment in the housing and infrastructure sectors.


Mr Vimal Ambani, Past Chairman, CII Gujarat State Council & Managing Director, Tower Overseas Ltd.

“The budget has long term plans and bold policy statements with clear focus on PM’s vision of Make in India. There is clear intention of a movement towards federalism, which will boost the progress of the state. MSME and Start-Ups are the backbone of Indian economy and has got a lot of focus in this budget.”


Mr. Girish Patel, CMD, Cengres Tiles Limited

The 2016 Union Budget’s push for affordable housing is a laudable move. 100 percent deduction for profits to housing projects building homes up to 30 sq metres in the 4 metro cities and 60 sq metres in other cities will spur demand for affordable homes. Further, deduction for first time home buyers of an additional interest of 50,000 per annum for loans up to 35 lakh sanctioned in 2016-17, where house cost does not exceed Rs 50 lacs, will attract foreign and domestic investment for such projects.

Around 90% of the demand for housing fall under this sector; hence, this announcement will lead more developers to take up projects in the affordable segment. This will encourage private sector participation and generate employment connected to it. Over all, this move will drive more construction activities and will spur demand for steel, tiles, cement, and other construction materials.

Mr. Anil Sardana, MD & CEO, Tata Power

“Tata Power welcomes the Union budget 2016-2017 and appreciates the Government’s balanced effort to maintain Current Account Deficit under a strict disciplined regime.

The Government has announced its focus on providing “power for all”, by May 1, 2018. The Minister has allocated a fund of Rs. 8,500 crore under ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ that will be used to facilitate rural electrification. With focus on rural electrification and the allocation of Rs. 8,500 crore under ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ will be a prominent step towards this. We clearly see more role for our sponsored companies like Tata Projects & Tata Power Solar to have enhanced participation. However, to sustain an electrified India, there also needs to be a strong power distribution sector. We hope more discoms will benefit from the Uday scheme to meet this goal.

Already the tariffs in some States, when it comes to supply to commercial and industrial sectors, are on par with wind and solar power generation. However, limiting the accelerated depreciation to 40 per cent may hit the growth of this industry. The Clean Environment Cess (erstwhile Clean Energy Cess) has doubled from Rs. 200 per tonne to Rs. 400. This would increase the cost of power generation by 10-12 paisa per unit. This will also put more stress on tariffs and Regulators, as in most of the states cost of Average Billing is lower than Average Cost of Service.

Also, Finance Minister’s announcement on pursuing Public Private Partnership (PPP) options and debottlenecking PPP matters through ‘Public Utility Dispute Resolution Bill’ and ‘Guidelines for renegotiations of PPP contracts’ would go a long way in resolving matters related to stranded assets. Government already has recommendations of Vijay Kelkar committee with it.

We also want to congratulate the Government on focusing on social and employability issues like its announcement of increasing its allocation to Skill India Mission to Rs. 1,700 crores. We look forward to working closely with the government towards holistic development of the country. Tata Power is committed to provide 24×7 uninterrupted and reliable power supply and the fuel of the economy!”

– DeshGujarat

#Arun Jaitley #India Budget 2016-17

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