Prakash P. Chhabria, Executive Chairman, Finolex Industries Limited
“India is on the path to becoming a potential global manufacturing hub. Post the Covid shake-up, economic recovery is still fragile and will necessitate fiscal support. Even globally, the economy is adjusting to the supply chain disruptions due to the pandemic. We are optimistic about the Union budget highlighting support measures for the agricultural and housing sector that will go a long way to accelerate recovery.
The need for better infrastructure development, digital augmentation, job creation is key to reviving the sector and the economy as a whole. We are expecting the Union Budget to boost India as a destination for international companies.”
Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances
“In the backdrop of the pandemic, the Union Budget 2022-2023 will play an important role in bringing the white goods sector on track and lead the way for the coming financial year. The industry has been grappling with unprecedented commodity prices shortage of components on the supply-side and subdued volume growth especially in high volume segments on the demand side.
Consumer durables like air conditioners, refrigerators, and washing machines have become essential household items, even more so in this pandemic where consumers are grappling with home isolation, work from home, inconsistent availability of domestic help. Commodity price inflation however has led to significant price hikes, even as consumer purchase sentiments are muted due to the economic uncertainty induced by the pandemic. We are expecting this budget to rationalize GST for these products. Air Conditioners are still in the highest tax slab of 28%, which we expect the tax slab to be brought down to 18%. Appliances continue to languish when it comes to penetration levels and lower tax slabs will help correct this, thereby improving the quality of life of Indian consumers, particularly women. Increased penetration and volume will help give a thrust to manufacturing as well in these sectors. Moreover, lowering the GST slab for eco-friendly and energy-efficient products further to 12% will not just help to drive demand but also increase the adoption of sustainable appliances – in line with India’s commitment to climate goals.
The PLI scheme launched last year will definitely benefit the industry over the long run. We hope that the budget specifically eases the current burden of component shortages and enables an uninterrupted supply chain and equally important, introduces policies that will boost consumption, easing the woes of the industry.”
Yash Jinendra Munot, Vice President, AIFI (Association of Indian Forging Industry) said,
This year, there are expectations of a good, progressive, and balanced budget from all MSME’s, including the forging industry, due to the rough patches the industry has seen with current chip shortages and the pandemic and keeping in mind that the industry has not fully recovered with the heavy investment done for BS-VI implementation. As the industry faces a large cash flow block with some value-added products at 28%, this budget should consider rationalization of the GST rates, which should be uniform at 18%. Additionally, import duties on steel should be reduced to meet the current shortfall and competitive Indian steel prices. Furthermore, as part of the ‘Make in India’ initiative, Indian companies should be eligible for a benefit on the Duty structure.
The government has made continuous efforts to simplify and streamline Indian tax laws, and the industry anticipates consistency in tax and regulatory policies, as well as their interpretation, this year. To achieve Industry 4.0, funds should be allocated through FDI schemes and new investment allowances to encourage investment in technology. We also anticipate that the scrappage policy, which is currently being held up by the finance ministry, will be passed to boost demand in all segments of the auto sector while achieving pollution goals. Thus, incentives for scrapping old and purchase of new vehicles should be implemented quickly.
Ashwath Ram, Managing Director, Cummins India Limited said
“India must continue its multi-year spend on infrastructure to sustain growth. We cannot slow down spending even if it is slightly inflationary in the short term. More support is needed for Manufacturing as we are still reeling under the effects of Covid-19 to sustain long-term growth and capital buildup. Liquidity is important for manufacturers to get capital at cheaper rates to invest in equipment for growth. Exporters need to be encouraged by SEZs coming into Remission of Duties and Taxes on Exported Products (RoDTEP) and the rates of payouts from the schemes to match the actual double taxations costs. Manufacturing of electrolyzers for H2, H2 in ICE and Flex fuels engines production equipment should come under the PLI scheme. Further, exports focused projects in Manufacturing need some incentives for better scalability and business sustainability”
Farrokh Cooper, Chairman & Managing Director, Cooper Corporation said
“The forthcoming Union Budget for 2022 should emphasize measures to help the Indian economy recover from the pandemic and to boost consumption-led demand. The auto industry expects relief from the Union Budget in multiple areas. To achieve sustainable growth, business communities should be encouraged to invest more in industry and businesses. I believe that the government should fix industry income rates for at least five years so that industrialists can make long-term financial planning and take appropriate decisions about investment in their industries.
Furthermore, the government is now encouraging businesses to establish large industries, and they should be treated equally with medium and small industries in terms of receiving timely payments from the government and private sectors so that they can pay small and medium enterprises. Furthermore, the government should prioritize managing inflation and lowering the cost of raw materials and fuel. To boost exports, existing incentives must be increased. There is also a need to accelerate the GST refund procedure to provide liquidity to the industries. The industry is also eagerly awaiting news on the scrappage policy. Given the current market conditions, we anticipate significant initiatives to revive growth and boost investor confidence in the upcoming Union Budget”.
Anurag Garg, Managing Director & Country Head, Vitesco Technologies, India said
“The Union Budget 2022 was the most anticipated budget for the Indian automotive and manufacturing sector. There was a strong push towards manufacturing and localization in this budget. Apart from the usual focus on fiscal deficit, this time the government has shown a great focus on health and infrastructure development this time. To take the overall automotive industry and retail trade back on the path of growth, the Ministry should regulate and reduce GST rates on two-wheelers to 18%. It is important to note that the two-wheeler is a necessity to travel distances by lower class and rural segments for their daily working needs. The market is very volatile, and the automobile prices are increasing every 3-4 months due to incessant price hikes in metals and various other issues, a reduction in GST rate will counter the price hike and aid in shooting up the demands in the market.
We are further awaiting more light on production-linked incentive (PLI) schemes extended for electric vehicles and advanced technology components, the vehicle scrappage policy, and announcements of PLI scheme for semiconductors are major positive steps. These have the potential to boost demand and resolve supply chain disruptions for the industry. The PLI Scheme will get a better push to boost manufacturing and attract investments in the automotive sector, benefitting us in the long run. The increase in customs duties in some sectors is designed to push self-reliance and localization. As we look towards a future with electrified automotive, localization will definitely help in cost optimization in the future. Though it might create initial challenges through price hikes and demand generation, it will be better for our economy in long run.
Additionally, the focus on renewable energy is welcome. The Hydrogen Energy Mission and focus on solar energy will help meet our energy requirements in the future adequately. Health outlay in the budget has increased by almost 100% considering the pandemic situation, this will help us to uplift the health infrastructure in both urban and rural segments of our country.”
Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd.:
“EV industry is expecting robust growth, and for that, we are anticipating a favorable Union Budget this year. The major focus will be on infrastructure development and incentives for customers, which will eventually increase the persisting demand, and decreased import duty on raw materials will also be a great relief for the industry. Seeing the government steps such as Auto PLI and PLI for semiconductor manufacturing, we are hopeful that the Government will continue to support the localization and the move towards green mobility.”
Shrikant Shitole, President – CREDAI MCHI-KDU & Managing Director – Tycoons Group.
“We are hopeful that this year’s Union Budget 2022-23 will announce certain policy relaxations that can help further boost the real estate industry. For the year 2022, we expect the government to continue providing low bank interest rates on home loans to sustain a positive outlook on the real estate sector. Increasing home interest rate tax deduction from the current ceiling of Rs 2 lakh to Rs 5 lakh can provide the necessary impetus required in the industry. We expect active participation from banks for project financing and hope for the government’s intervention to help avail the funding from banks and NBFCs. Furthermore, revised and lowered GST on raw materials such as cement and steel can be a crucial move as it will help stabilize the property prices.”
“Besides, we also hope that the affordable housing definition will be changed from 60 Sq Mtr to 90 Sq Mtr. for metro cities, and re-introduction of GST with an input tax credit on under-construction properties can be addressed through the budget, as well.”
Rohan Khatau, Director, CCI Projects Pvt. Ltd. – Rivali Park
“To sustain the positive outlook of the real estate sector in this new year, we are hopeful that the Union Budget of 2022 will usher in various tax benefits and rapid infrastructure development to magnify real estate in the MMR market. As the sector has exhibited strong growth and resilience through unprecedented times, it is expected that the budget focuses on foreign and domestic investments while facilitating policy support, which brings in further reduction in the home loan interest rates. Waivers on GST rates for under-construction properties and incentives are expected to enable private investment in the affordable housing sector. With various financial aids such as the SWAMIH Fund initiative, stamp duty reductions, and low repo rates during the year 2021, the sector has flourished exceptionally. To strengthen this momentum, we anticipate significant and beneficial reforms for the sector overall.”
