Fiscal prudence exercised is favourable in the face of the current economy, and this is a positive budget. A timeline for the roll out of GST was expected. Government’s intention to introduce CenGST and DTC after review is encouraging news. Path outlined for manufacturing, power, coal and mining sectors should spur economic activity going forward. A monitoring mechanism could have ensured timely implementation of projects sectorwise.
In regards to Indian automotive industry, focus on rural roads, highways and expressways are welcome decisions. Announcements in regard to taxation are also positive steps. Proposals and announcements if implemented effectively could positively impact industry and economy. Implementation of proposals remains a challenge and GM India hopes the market will respond favourably.
Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd referred to the budget as well defined and prudent with specific focus on infrastructure, manufacturing and rural schemes. From a macroeconomic perspective, it supports investment. Despite the lack of dynamic announcements, the budget has clear intent, while moving in the right direction.
It’s an attempt to put placeholders through various Rs. 100 crore schemes. He perceived the budget as a blueprint to Government direction in the next few months. In regards to Indian automotive industry, announcement on incentives for electric vehicles was expected. A firm date for GST implementation too was awaited.