Union Budget 2019 India: As the time for Budget 2019 draws near, several industrialists have spoken about the industry reforms that they expect from it. Nestle and Godrej, two of the biggest FMCG companies in India, have also joined the bandwagon and spoken about the need to reduce corporate taxes. “Any steps to reduce corporate tax will make investments more attractive,” Nestle CMD Suresh Narayanan told CNBC TV18 on the sidelines at an event. Also speaking at the same event was Adi Godrej, who resonated the same and said that there is a need to reduce the rates of corporate taxes for bigger companies.
Expectations are very high from Finance Minister Nirmala Sitharaman’s maiden budget to be unveiled on 5 July 2019. As FMCG industry has borne the brunt of the ongoing rural distress, Suresh Narayanan said that he hopes the budget addresses consumption, agriculture, employment and investment. Stating that there is a need for greater partnership between the industry and the government, he added that it will improve the overall economic climate of the country.
“The issue that is obvious and can address a lot of our issues is agriculture. Whatever we can do on agriculture, be it in terms of agricultural incomes, in terms of food processing, and enhancements of food processing industries — can generate income, employment and a sustainable model of progress,” Suresh Narayanan added. However, he remains confident of demand and consumption. Once the right kind of investments are generated and demand and consumption will also happen, he said.
Slowing economy is another concern and Adi Godrej said that the growth needs to be restored hence the 2019 budget must have provisions for it. Also addressing the recent repo rate cut by the Reserve Bank of India, the chairman of Godrej industries also said that lower interest rates have not been transmitted despite the repo rate cut.