Industry & Economy
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Budget
Focus on export industry to bring investments
The Union Budget 2008-09 was essentially a growth driven budget with good signals on the overall industry. The global recession had no impact on Indian economy because of the timely and corrective actions by the policy makers.
The continuous duty reduction has helped in price reduction across the product category and such supportive measures have helped the consumer durable industry in achieving the high growth rate. We are sure that the pace of reforms will continue as impressive as in the past.
India can compete with any other country in its capability and development. It is in the path of becoming global player as manufacturing hub for all export to Europe, the US and Africa. To achieve this, the Government need to focus on export industry and special schemes are required to bring investments and generate employment.
To prepare a common platform for manufacturing units, the Government must look for implementation of GST as promised in the previous Budget. The tax boundaries need to be rationalised and State sales tax should be communised without any exception of States putting any additional tax.
India has a great potential for the IT, telecom and electronics sectors. To have a better edge over international market, development of component and raw material is essential. The Government should support such industries and take out special schemes for in-house component development and R&D.
The Government should compensate basic infrastructure requirements such as water, electricity and steel for construction and also remove inverted duties on the raw material and components to have a competitive product available at less cost for a common man.
It must look at industry as a growth driver and initiate steps to help in that cause. To make this industry grow and contribute to the whole economy the following areas need attention:
• Implementation of GST and rationalise taxation on all-India basis.
• Levy of Fringe Benefit Tax and “Minimum Alternate Tax ” resulting in high operational cost making final product costly.
• High corporate tax of 30 per cent resulting in increase of overheads making product uncompetitive in domestic market.
Moon B Shin,
Managing Director,
LG Electronics India
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