SupportBiz presents the reactions of some players from the logistics industry to the budget, most of whom are satisfied with it.
Aditya Bafna, Executive Director, Shree Shubham Logistics Ltd, says, “Given the challenges faced at the macro-economic level, we would like to appreciate the efforts of the Finance Minister in delivering a pragmatic budget. The special emphasis on the agriculture sector, including a guarantee of Rs. 5000 crore given to NABARD for the creation of additional warehousing facilities, will be beneficial for the sector.”
Malcolm Monteiro, Senior Vice President and Area Director - South Asia, DHL Express, says, “The decision by the government to establish a panel to monitor the costs of doing business in India is really welcome. Logistics companies hope that this will lead to bold initiatives to reduce transaction costs of trading across India’s international as well as state domestic borders.”
“The industry was also hoping that announcements would be made to add clarity to the design and the roadmap for the implementation of GST, but the same was not addressed,” Monteiro states.
On the aspect of removal of service tax on testing of agricultural produce, Bafna says, “This is a welcome step, which will benefit farmers in a huge way by helping in the reduction of costs for those who want to test their produce. It will also lead to th creation on larger testing facilities for agricultural producers.”
Bafna also states that interest subvention for famers is yet another positive move by the Finance Minister, which will help the farmers raise money against authorized WDRA (Warehousing Development and Regulatory Authority) receipts.
"Keeping agricultural commodities out of CTT (Commodity Transaction Tax) will lead to increased trading in these commodities, which may lead to better price realisation for farmers. We are also hopeful of a positive impact on the agriculture sector with the enhancement of agricultural credit to Rs. 7 lakh crore.” Bafna adds.
Krishan Sachdev, Managing Director, Carrier Midea India, adds, "The Union Budget was what we had hoped for - a balanced budget. There has been no major change in the tax structure, which will provide the desired impetus to economic growth. Increased DDT and surcharge on corporate income, however, came as a surprise."