Indian Budget 2013

India's Budget and the Process Industry: What Top Honchos Expect for 2013

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The Union budget is expected to bring positive sentiments back about India while ensuring we achieve a prudent fiscal balance with much lower inflation. This is possible if we improve efficiency and effectiveness in our various state funded capital and welfare programs and also increase supply of goods & services. In the forthcoming budget there should be allowances for improving the investment cycles and provide support to accelerate project executions in several industries viz. power & energy, infrastructure, water and fertilizer industries.

At present, several challenges are faced by these industries due to shortage of capital, raw materials. Stable & non adversarial tax regime is needed to build positive sentiments in the minds of foreign and domestic investors. There is a need for effective and timely execution of various state investments or welfare schemes. Besides, several PSUs have substantial cash balance, which can be utilized in initiating Greenfield projects or expansions thereby generating higher economic activities.

There should be a clear roadmap and timeframe on GST implementation – Early implementation would help in improving tax collection besides improving transactional efficiency, compliances. It’s necessary to maintain direct and indirect tax rates and improve tax collection through increasing number of tax payers and compliances. The government should provide tax incentives on energy and water saving investment programmes undertaken by corporates.”

* Deputy Editor Vogel Business Media India