 "Shilip Kumar, country president, Henkel India")
The Union Finance Minister Arun Jaitley presented a fiscally prudent union budget for FY 2017-18. It maintains the government's fiscal consolidation efforts, which is expected to lead to stable economic growth of the country.
The budget has been prepared with an increased focus on social security, infrastructure and financial stability. Considerable impetus to agriculture, infrastructure and manufacturing is an encouraging signs for the economy and the business.
Micro, small and medium enterprises (MSME) will benefit with the proposed reduction in the income tax to 25 percent. This is a welcome move, as it will help unlock the potential of the MSME sector in India, which in turn will propel growth in the large and medium scale sectors.
Higher tax revenues (of 17 percent) has been credited to the demonetisation drive undertaken by the government. We hope that this will add to the economic growth and tackle any adverse effects of demonetisation.
There are no major changes in excise rates and service charges, as they will be replaced by Goods and Services Tax (GST), an important tax reform. We hope to see the smooth implementation of GST by June/ July this year.
India is already amongst the biggest consumers of adhesives and sealants due to rapid industrialisation and infrastructure growth. The increased thrust to infrastructure is a positive development for adhesive, sealant and functional coating manufacturers.”
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Shilip Kumar is the country president of Henkel India
