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Corporate India reacts positively to range of Budget 2015 proposals

Company heads across industries welcome the Union Budget for 2015-16

BS Reporters 

Arun Jaitley, Budget
Finance Minister Arun Jaitley with MoS Jayan Sinha leaves for Parliament to present the annual budget 2015-16 from his office at North Block in New Delhi.

• Gautam Adani, chairman, Adani Group
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"This budget is focused on ease of doing business. “Make in India”, infrastructure, social sectors.  Introduction of GST from 1 April 2016, will definitely rejuvenate the industry and make manufacturing more competitive. This, coupled with  clarity on GAAR deferment for two years and no retrospective applicability, comprehensive bankruptcy code, abolishing wealth tax act, merger of FMC with SEBI, rationalization of corporate tax from 30% to 25% coupled with review of deductions, etc. supports "make in India" Campaign.  Overall, prudent fiscal consolidation with growth bias; tax structure rationalization; social sector upliftment and focus on infra spending would serve the nation well."

• Y C Deveshwar, Chairman, ITC Ltd

"The FM has taken comprehensive steps in the budget to address the core issues of fostering growth with equity, boosting investments and creating jobs over the medium to long term.  The focus on agriculture, infrastructure, health and education will enhance the social fabric and contribute to equitable growth. Targeted subsidies will meet the twin objectives of benefiting the poor as well as arresting the systemic leakages.  Steps taken to improve the ease of doing business, particularly for the MSME sector, will give a fillip to job-creating investments. The strong measures to eliminate black money and to impose exemplary punishment is a bold step to curb the parallel economy and mainstream resources for productive growth". 

• Arundhati Bhattacharya, Chairman, State Bank of India

"The Budget has laid out a clear and tangible roadmap for the future. The decision to incentivise credit and debit card transactions coupled with the proposed new law on black money will bring down the social cost of unaccounted money, apart from adding to the bank bottom-line. The move to frame a Public Contract Bill will kick start activities in the construction sector plagued by disputes. The move to bring NBFCs at par with financial institutions will help banks to clean up their balance sheets by selling stressed assets at an early stage to ARCs. This apart, framing of Bankruptcy Law, sprucing up public investment to channelize private investment and monetisation of gold assets are positive steps.” 

• Chanda Kochhar, MD &CEO, ICICI Bank

"The Union Budget for fiscal 2016 is the Finance Minister’s GIFT to the nation. There is a clear and sharp focus on the four key areas of Growth, Inclusion, Fiscal Prudence and Tax Rationalisation. The budget promotes Growth through its focus on infrastructure and ease of doing business. The theme of Inclusion is reflected in the measures taken to empower all stakeholders – there is greater devolution of resources to States and there are a number of measures for the poor, youth and senior citizens. The fiscal target of 3.0% by fiscal 2018 articulated by the Finance Minister is prudent while at the same time balances the current growth needs of the economy. The clarity given on the Tax regime will go a long way in making India an attractive destination for investments, and encouraging domestic savings. The budget reflects the vision of the Government and takes India forward on a path of growth and inclusive prosperity. "
 
• T N Bhasin, Chairman, IBA, and CMD, Indian Bank


 

"This is a forward looking Pro-poor, Pro-Agriculture and Pro-Infrastructure with focus on health, housing, education, social security and upliftment of under privileged sections of society. Introduction of Comprehensive Bankruptcy Laws in 2015-16 and extension of SARFAESI Act for NBFCs with asset base of Rs.500 crore will improve the Recovery climate in the country. Setting up of Bank Board Bureau is a welcome step towards improving the Corporate Governance in Public Sector Banks which will bring transparency in appointing PSB Heads, Board Members and find innovative ways to raise the much needed capital by the Public Sector Banks."

• Sunil Mathur, MD & CEO, Siemens Ltd

“We welcome the growth-oriented 2015. It is consistent with the stated objectives of the Government, reinforcing its commitment to realization of infrastructure projects. With the Budget, the Government seems inclined to follow its bold path of building infrastructure and improve ease of doing business. Its intention to increase public investments while decreasing corporate taxation over a period of time are also steps in the right direction, and we are sure these steps will further improve the confidence of investors and industry alike. We also welcome the Government’s decision to defer GAAR by two years and the introduction of GST in April 2016."
 
• Banmali Agrawala, President & CEO, GE South Asia

"The Finance Minister has presented a highly pragmatic that provides a good balance between increasing capital outlay and restricting fiscal deficit. …. The is a roadmap for demand generation which in turn will attract investment, create jobs through manufacturing and entrepreneurship, all of which play a vital role in the success of the ‘Make in India’ campaign. We appreciate the “green focus” on Energy by encouraging renewable energy and levying a cess on coal which will reinforce India’s commitment to the environment within the international community. …. The overall direction of the is appropriate and will further inspire confidence of the global business community in India.” 

• Sunil Duggal, Chief Executive Officer, Dabur India Ltd

"Finance Minister Mr. has presented an inclusive and balanced that seeks to put Indian on a faster growth trajectory. With a plethora of announcements, this government seems all set to take forward the Reforms agenda. Its commitment towards introducing the long-pending Goods & Services Tax (GST), besides increasing focus on the rural development, infrastructure and health are positive steps that would not just boost overall confidence, but also go a long way in generating employment. The reduction in corporate tax is a positive and will help make India Inc more competitive. It is also heartening to see that the new government has stressed on the need to make borrowers more accountable and the intent to introduce a Bankruptcy Law is a good step."
 
• Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group

"This restores confidence in India and India Inc.  The approach of the Finance Minister is one of “quantum jump” rather than tinkering, which would accelerate the development process and put the Indian on a sustainable growth trajectory, while further expediting the “make in India” programme. Shri Jaitley’s focus on roads, airports and power is going to be highly beneficial.  Directionally, the has ushered in a fiscally-predictable tax regime.  No in recent times has so courageously tackled so many burning issues – Indian business could not have asked for better.” 
 
Rakesh Srivastava, Sr. Vice President, Sales & Marketing, Hyundai Motor India Ltd

"This Union is growth oriented, focused on bringing in investments while addressing the current account deficit. We welcome Initiatives on ease of doing business, enhancing the global competitiveness of the Indian industry, skill development for creating employment in rural sectors mom, rationalization of taxes for GST rollout & enhancing social security. Overall we hope it will uplift the Business & Consumer sentiments.  There will be a marginal increase of basic duties.  The service tax increase is not expected to have much impact on manufacturing, since there is a facility to offset it.” 

Vikram S. Kirloskar, Vice Chairman, Toyota Kirloskar Motor Pvt. Ltd

"We compliment the Finance Minister for announcing the pro-India that would strengthen the social fabric, improve governance and tax rationalization. Overall a positive for both corporates and individuals." 


Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd.

 "The finance minister has presented a growth oriented with long term benefits to all sections of society. Focus on key areas like investment in infrastructure, increasing urban housing with a roof for each family by 2022 & listing of REIT’s are positives for the realty sector. Additionally, implementation of GST by April 2016 & reduction in corporate tax in a phased manner are measures which should drive the key sectors of the With a projected GDP growth of 8%-8.5% in the coming fiscal, the government seems poised to usher in a new growth era for the Indian
 
Gagan Banga Vice Chairman & MD, Indiabulls Housing Finance Limited

"The FM has cleared the cluttered, and at times convoluted, tax regime and has ushered in a more cogent and predictable tax environment. Good infrastructure is the foundation of meaningful and sustainable GDP growth. The thrust on infrastructure in the is a welcome step in this direction and signals the government’s intent and understanding of the importance of this key sector. … a low to moderate inflation environment will also ease populist pressures on the government. The tax overhaul to permit the listing of REIT will provide a much needed source of capital to a sector that is hungry for efficient funding.” 
 
Arvind Mathur, President, IVCA (Indian Venture Capital and Private Equity Association).

"IVCA wishes to congratulate the Finance Minister for showing great sensitivity to the Make in India program. He has clearly touched upon the financial underpinnings of the job-creating, Make in India program as well as start-ups. These initiatives will require substantial mobilisation of long-term risk capital through the channels of private equity, venture capital, Alternative Investment Funds and Infrastructure funds. has shown great foresight in addressing these sources of long-term capital in this "
 
Nandkumar Surti, MD & CEO, JPMorgan AMC

"A very strong Emphasis has been on tax simplification, tax compliance and infrastructure spend which is the need of the hour. The government has rightly delayed the Fiscal Deficit target by a year given the private sector challenge to spend money on infrastructure. The priorities are very clear. The direct association of increased excise duty to be spend on road infrastructure shows good use of the increased revenue. The emphasis to financial inclusion through micro refinance augurs well for the rural educated. The various social schemes on medical, accident insurance and push to pension schemes is very well balanced. with a good heart - tax the rich which still doesn't pinch, spend on infrastructure,  ease of doing business and social spend - all very well intended."
 
Tarun Chugh, MD & CEO, PNB MetLife 

"The Honourable Finance Minister has presented a pragmatic with a long-term perspective creating job opportunities for the youth, increasing investment in infrastructure while keeping the fiscal deficit in check. We welcome the proposal to increase the tax benefits for health insurance from Rs 15,000 to Rs 25,000. Currently, over 78-80% of health care expenses are funded by the Indians out of their own pocket and this move will encourage people to increase their coverage keeping in the mind the rising cost of healthcare. The proposal to make the ordinances into a law is a positive move and we hope that the same is implemented quickly as it will help the insurance sector bring in additional capital of close to $3.5bn."

Anil Valluri, President, NetApp India & SAARC

"The by the Finance Minister, is a bold and an assertive one. We are pleased to know that local businesses and budding entrepreneurs stand to make a mark globally through various schemes that will help them prosper. A number of steps have been announced to improve the ease of doing business; creation of Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs. 20,000 crore, and credit guarantee corpus of Rs. 3,000 crore is a positive step to encourage young, educated, skilled workers who aspire to become first generation entrepreneurs or expand their activities. A progressive and investment focused overall from which we hope to see tremendous growth for the Indian "
 

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