No expected announcements for retail industry: Govind Shrikhande, MD, Shoppers Stop
We were eagerly hoping to hear about the passage of the stalled GST bill as well as measures toward levelling the playing field for e-tailers and brick & mortar retailers.
By Govind ShrikhandeThe Union Budget, which has been built on the pedestals of accelerating agricultural growth and rural development, boosting job creation, driving infrastructure investments and increasing ease of doing business, has good intent and broad long term implications. If the country achieves the doubling of Agriculture Income in five years- it will be nothing short of a miracle.
The FM has maintained the fiscal deficit at 3.9% despite the challenging environment.
Focused initiatives for agricultural growth through irrigation projects, financial assistance to farmers and e-platform Agricultural Market scheme will boost agricultural production and bolster the farm-to-market chain. 100% FDI in marketing of food products manufactured in India could prove to be beneficial to the food processing industry.
On the flip side, there has been no modification in Income Tax slabs and this could stagnate discretionary spending. Moreover, additional excise duty on certain goods and services including branded apparel above Rs. 1000, jewellery etc. and increase in Service Tax to 15% ( via The Krishi Kalyan Cess) is likely to impact consumer spending in the respective categories. Consumer demand which is already muted could get impacted further.
The FM was silent on the much-debated topics pertaining to the retail industry in his Oscar-day speech. We were eagerly hoping to hear about the passage of the stalled GST bill as well as measures toward levelling the playing field for e-tailers and brick & mortar retailers. And some welcome clarity on Multi Brand FDI in Retail. While Leonardo won the long awaited Oscar- the FM did not cheer the retail industry with any of the expected announcements.
Overall, the budget has focused on macro-economic indices and outlines the intent of the government to sustain India’s poster-image of growth against the backdrop of an otherwise dull global economy.
The author of the article is the managing director of Shoppers Stop
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