The budget has been considered to be growth-oriented for the textile industry as a whole, believes Ashok J Gupta, Executive Director and CEO, Indo Rama Synthetics India. Welcoming the Union Budget 2013-14, Gupta says, “The extension of the Textile Technology Upgradation Scheme to the 12th plan with the investment target of Rs. 1,51,000 crore in the textile sector and the setting up of apparel parks within SITPs are indeed welcome steps. In addition to this, excise duty relief to the readymade garment sector is also a positive development for the industry, which will give further fillip to it. Also, an additional investment allowance of 15% has been announced, available over and above depreciation for investments higher than Rs. 100 crore. Overall, these announcements will further boost the growth of the Indian textile sector by bringing in desired investments.”
Representing the toy manufacturing industry, Shree Narayan Sabharwal, Head of Business, Simba Toys India, says, “The 4.8% fiscal deficit for FY14 is the right move, and will relieve the market observer. This fiscal prudence will help protect India’s global investment ratings. This support to ratings allows for the continuation of FII & FDI inflows, as also of the external commercial borrowings of the corporate sector. GST implementation would also have helped, but the government has again delayed it."
Shailesh Haribhakti, Chairman, BDO Consulting, believes that this budget is a completely unsatisfactory one. Haribhakti says, “This is the most disappointing budget document, as it has no ideas that can give a huge thrust to jobs, CAD reduction or serious fiscal compression. The math of the budget is hard to accept, and the signal for inflation muting and consequent rate reduction is weak. We may continue living in an era of postponed commitment to investing. The Survey pointed to ideas for action, but the budget failed to deliver on expectations.”
Haribhakti adds, “The reaction of the markets post the budget speech has less to do with what was said and more to do with what was unsaid. While there have been positive steps proposed for infrastructure, real estate, banking and the capital market, there has been no action to clarify the misdoings of the retrospective amendments. The back-door entry of Tax Residency Certificate (TRC) is not something that would largely attract investments back into India. Domestic Transfer Pricing provisions stay the way Mr. Mukherjee had them, and the budget has made no clarifications, in spite of them being much needed. On one hand, high surcharges and taxes on luxuries have made sitting ducks of the more affluent class. On the other hand, the expenditure allocation would mean something to the poor only if direct benefits are actually transferred to them.”