Moon B Shin, managing director, LG Electronics India said, "Budget 2009-10 was a blueprint assuring immense growth and progress in India. Not only did it promise rural development and industry growth across sectors but also skewed the impact of global economic meltdown in India with relevant steps and provisions.""An overall growth has been witnessed in the industrial sector.
At a point when the entire world was struggling with slowdown, India emerged as one of the economic leaders on the global platform with its consistent growth momentum. The Government of India kept its promise of funding infrastructural investments, making it a lucrative option for the global investors.
The duty reduction and work towards the goal of GST has helped industry to remain competitive in the market. This has also enhanced the local demand resulting in further upliftment of business environment of the country. We are confident that the Indian Government will continue its promise with the same pace in the year 2010-11.
He emphasized that to let industry grow on fast track basis, Government should look on the following areas
- To develop India as the Export Hub for US, Europe and Africa since the cost is a matter of concern for all the countries affected by recession. Government must work aggressively to develop large and modern ports, roads networking and communications to support the same.
- Investment in R&D and component manufacturing for IT and Communication industry has become essential to support Export Hub. Government needs to support and encourage such Industries by means of special schemes.
- GST implementation has become very essential, as it will bring all manufacturing companies at a common platform ensuring healthy competition, which in turn will benefit the end consumer. Therefore, GST should be implemented from 1st April 2010 as promised by the Government during its last Budget.
- Government needs to promote transportation as an industry and work out a transport policy allowing free flow of movement of vehicles between various states. Removal of registration fee is an essential requirement to help this industry. Also Government needs to look into other modes of transportation apart from Roads such as Railways and Sea, which will help in de-congestion of the load.
- The Government 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 area's need attention during this budget:
1. Rationalization of tax rates structure by removing surcharge on Corporate Tax.
2. Work out further incentives on Export in order to boost the economic growth.
1. Fiscal measures like stimulus package should continue (reduction in excise duty etc.) ensuring consistency in the current rate of growth.
2. CST (Central Sales tax) rates should be reduced to "zero" as committed.
3. SAD (Special Additional Duty) should be abolished.
What do you expect from the forthcoming Budget for 2010-11? Tell us!