FMCG biz players okay with Budget

The retail and FMCG (Fast Moving Consumer Goods) industries have welcomed many of Jaitley’s announcements, calling them pro-economy.

“The Budget presented by the Finance Minister is in the right direction. I think the GDP growth rate in the next fiscal year will be on the higher side of the range at 8.5 per cent. The high investment into infrastructure, a clear date for implementation of the GST, strong encouragement to agriculture and the social infrastructure sector will be very favourable for GDP growth in the future,” Godrej Group Chairman Adi Godrej said in a release.

Finance Minister Arun Jaitley, as part of Budget 2015 on Saturday, announced a slew of measures expected to boost the economy going forward, with various sectors impacted by them.  Stating that the estimated GDP growth for 2014-15 is 7.4 per cent, Jaitley said that growth in the next financial year is expected to be between 8 and 8.5 per cent, and aiming for a double-digit rate seems feasible very soon. He stressed that the country must think in terms of a quantum jump.

The Goods and Service Tax (GST) will be implemented on April 1, 2016. According to Jaitley, GST, introduced in the last session, will transform the way the economy functions. Many FMCG players are upbeat about the GST devlopment.

Stressing on manufacturing as a priority, LG India Managing Director Soon Kwon said in a release, “The determination towards GST and the proposed implementation will boost the industry through a state-of-art indirect tax system. Efforts being made by the current government towards achieving its vision of ‘Make in India’ policy is evident in this Budget and hopefully it will turn manufacturing in India into a more profitable and business-friendly proposition.”