Canon India, Kotak Mahindra react to new Budget
Posted on: 06:05 PM IST Jul 06, 2009
New Delhi: The Union Budget 2009 has been welcomed by the India Inc.
Here are two of India's business majors' reaction to the budget.Group Head Retail Liabilities & Branch banking, Kotak Mahindra Bank KVS Manian says, ""The budget is a reflection of the down to earth approach of both the FM & PM. It lacks the flamboyance that capital markets love. The expectations were too high and were in the scale of 'reformist revolution' which was impractical. I would still rate the budget as good in terms of its focus on growth, infrastructure and social agenda and the 'aam aadmi agenda.The decrease in personal taxation & FBT will put more money in the hands of the common man. NREGA will help rural demand and overall the focus of the budget to drive domestic demand and continued stimulus to the economy is noteworthy."Meanwhile, Senior Vice President, Canon India., Alok Bharadwaj, Like always , the budget is a mixed bag. The half glassful is the removal of surcharge and increase in standard deduction by Rs. 10,000. This will improve the consumption sentiments. Consumer market will indeed show buoyancy. The abolition of fringe benefit tax is a big relief. The half glass empty part is the increase in MAT to 15 per cent and status quo on CST tax which was expected to come down to 1% to give way to GST next year .while, COO- Tanishq, Titan Industries Ltd, Mr C K Venkataraman says, "Excise Duty on branded jewellery has been beset with implementation problems from day 1 since the nature of manufacturing in the industry is quite fragmented and the government has not really been able to make much headway on this front. It is a good thing that the government has withdrawn this.The doubling of customs duty on gold was perhaps brought in to compensate for the excise duty withdrawal. It is applicable to every manufacturer and retailer and is therefore fair. It is also very easy to implement and will guarantee 500-odd crores of additional revenues to the government."