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in a competitive business environment. “The imposition of FBT is an additional cost on most companies and it is a major hindrance to business development,” he says. He adds that since employer’s contribution to superannuation fund, provisions of hospitality, travel expenses and sales expenses do not directly benefit the employee, corporate India should continue to lobby with the government for the removal of FBT under these heads.

After the final analysis of the budget provisions, corporate chiefs interact with their industry associations to lobby with the government for various waivers. Thus within hours of the presentation of the budget, the finance ministry is flooded with a host of representations from various industry organisations seeking changes in either excise or customs duty rates. There is a rush of appointment seekers to explain their points of view to the ministry and lobby for changes in the duty rates on goods, which either they manufacture or those, which reduce their competitiveness. And if the Union finance minister thinks that the representation is justified, the waivers are worked out.

The budget is an important day not only for Indian companies, but also for global multinational companies operating in India. The Indian budget is keenly observed in the US and Europe. American companies account for around 37% of the turnover of the top 20 firms operating in India. And with the country’s GDP growing over 8%, and more and more foreign companies are lining up new projects and investment proposals in India, the budget is surely a mood setter for them.