India Inc wants stimulus sops to stay in 2010

If wishes were horses, then India Inc will ride the hope that in 2010 the government keeps intact sops announced last year to cushion the impact of the global economic downturn.

The auto industry, consumer durables sector and retail and FMCG segments are keeping their fingers crossed wishing that tax concessions they received last year stay through the new year in order to beat the growth rates reached before slowdown hit the economy.

"Interest rates should remain low, commodity prices should remain where it is today and the stimulus packages should continue," Society for Indian Automobile Manufacturers (SIAM) President Pawan Goenka told PTI.

He said the above factors are important if India Inc has to keep the growth momentum in the next year.

"Our fear is that if the government reverses the sop provided this year in the form of reduced excise duty, the growth of the industry will slow down...," said LG Electronics India Head of Sales Amitabh Tiwari said.

Last year, the government had announced a four per cent CENVAT duty reduction to give a boost to the Indian industry which was facing the impact of global economic slowdown.

For the FMCG sector, which drives a major revenue from the rural markets, the expectation from the government is that it ensures villages become a part of India's growth story.