The Union Budget 2008-09, which aims to put the agriculture sector back on the growth track, is overall positive on the FMCG industry, said Sunil Duggal, CEO of Dabur India. ?Finance minister P Chidambaram?s decision to reduce CENVAT rate to 14% is in line with the GST roadmap, and will go a long way in achieving the goal of taking the manufacturing sector growth rate to double digits,? he explained.
Sharing similar sentiments, Dinesh Shahra, managing director, Ruchi Soya Industries Ltd, said, the budget can be termed as a pro-agriculture and welfare budget. ?The budget contains proposals such as waiver of loans for small and marginal farmers, high fund allocations for agricultural and health sector, and emphasis on rural infrastructure to boost the growth of the agriculture sector,? he added.
According to Akhil Kejriwal of Enam Securities, it is a positive budget from the consumers? perspective as it aims to increase disposable income that will induce consumption.? Reduction in income tax incidence, higher spends on the hands of farmers and reduction in excise duties will boost the FMCG?s growth this year,? he added.
Bharat Patel, chairman of Procter & Gamble India, said the FM?s decision to increase minimum exemption limit for direct taxes will result in having more money in the hands of taxpayers and will thus stimulate consumption and propel the economy.? The significant relief provided to marginal and small farmers through waiver of loan debts is an important step in ensuring that the economic growth is inclusive and sustainable. It is commendable that he has provided for this largesse without adding incremental strain on the industry. It is therefore a very balanced budget,? he said.