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Goyal’s interim Budget good; Food processing among top 10 agenda items
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Monday, 04 February, 2019, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Although the 2019-20 Budget, presented recently by acting finance minister Piyush Goyal, was an interim one, it was able to hit the right chord. This was the opinion of most experts. The food processing and value-addition sectors were delighted, as the government put them in the top 10 agenda items for the next 10 years.
S Jindal, president, All India Food Processing Industries (AIFPA), stated that strengthening the entire food chain, from farm to fork, was expected to generate a positive sentiment and a cyclic effect, wherein both agriculture and food processing would complement each other.
Simon George, president, Cargill India, opined that there was quite a strong rural economy and agri push in the interim Budget. “We are particularly optimistic about the Central Government-sponsored Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the direct benefit transfers to small holder farmers,” he added.
“A lot more can be done. Nevertheless, it is a good move that will help farmers align better with the market. Many more initiatives, including market reforms like implementing the Model APMC (Agricultural Produce Market Committee) Act, the Essential Commodities Act, etc., are required to achieve the objective of doubling farmers’ incomes by 2022,” George said.
He added that the interest subvention scheme of five per cent to farmers engaged in animal husbandry and fisheries is also a positive development, helping farmers through lower interest rates.
“Additionally, the increase in the MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) outlay to Rs 60,000 crore will result in rural employment and infrastructure growth,” George said.
“More money in the hands of the farmers and consumers through the tax reforms will provide a further impetus to the economy’s growth,” he added.
CII (Confederation of Indian Industry), in a statement, said that the Budget for 2019-20, presented by Goyal, touched the right note for stimulating demand and growth in the economy.
“By strongly addressing the major consuming sections of society, such as farmers, the middle class and unorganised sector workers, it aims to stabilise incomes and reduce risks for vulnerable people,” it added.
Reacting to the Interim Budget 2019-20, Sandip Somany, president, FICCI (Federation of Indian Chambers of Commerce and Industry), said, “It is a progressive Budget that addresses both the current challenges being faced by the economy as well as presents an outline of the vision the government has for the future of India 10 years ahead.”
“FICCI compliments the Government for its clear focus on the agriculture sector, particularly the small and marginal farmers, the middle class, senior citizens, small-savers and workers in the unorganised sector,” he added.
Commenting on the Budget, Mansoor Ali, chief sales and marketing officer, Hamdard India, said, “The Union Budget 2019 is pro-growth and fiscally prudent. Schemes such as Prime Minister Kisan Samman Nidhi and the exemption of income tax will create more stimulus for consumption.”
“Other sops for farmers, middle class and the introduction of pension schemes for the informal sector will all help in achieving the overarching consumption story of the country. This will ultimately increase consumers disposable income with more money in their hands,” he added.
“Initiatives like MGNREGA and PMGSY (Pradhan Mantri Gram Sadak Yojana) and the focus on electrification of villages will also play a role in development of infrastructure and raise the standard of living in rural India,” Ali said.
“All in all, the measures and policies introduced in this year’s Budget will ensure higher incomes for marginal and small farmers and more money to the middle class to boost FMCG consumption,” he added.
“The increase in disposable incomes for urban and rural India will provide a kicker to consumption demand. The improvement in the consumer sentiment will boost the demand for low-value durables due to additional income of Rs 3,000-10,000 in the hands of consumers next fiscal,” opined Amish Mehta, COO, CRISIL Ltd.
Arvind Mediratta, managing director and chief executive officer, Metro Cash and Carry India, stated that the last Budget before the general elections was a prudent and people-focussed one.
“Direct benefit transfer of Rs 6,000 per year to farmers with land holdings covering an area of less than two hectare, and the outlay of Rs 75,000 crore under the PM Kisaan Samman Nidhi will benefit the farming community and will give a major boost to rural disposable incomes,” he added.
“The big announcement of tax rebate to individuals with incomes up to Rs 5 lakh will bring in huge relief to the individual taxpayers. The twin step is likely to push discretionary spending in both the rural and urban classes,” Mediratta said.
“Interest subvention to farmers engaged in animal husbandry and fisheries, and the mega pension plan for unorganised sector workers is a great announcement. The two per cent interest subvention announced for MSMEs (micro-, small and medium enterprises) is a positive development that will strengthen the micro, small and medium sector,” he added.
Nakkyun Chong, chief executive officer and founder, Avenue11, a grocery solution company, said, “This year’s Budget has by far been the friendliest budget that the Indian middle class has witnessed in a long time.”
“While the five per cent GST (Goods and Services Tax) restriction on daily use items is a respite for consumers, it also spells good news for retail businesses when it comes to increasing revenues and sales,” he added.
“The continued focus on developing digital infrastructure and digitising transactions will encourage the masses to adapt to online shopping. The rising popularity of UPI, aided by dirt-cheap data packs and smartphones will propel a new wave of Indians to transact online. As an entrepreneur, I was hoping for a cut-back on angel tax, but the new Budget maintains the status quo,” Chong said.
On the dairy front as well, the government got a pat on its back. Samarth Setia, founder, Mr. Milkman, stated, “The Rashtriya Kamdhenu Ayog, a step taken for the welfare of cows, is going to have a great positive impact on the Indian dairy industry in the long run.”
“Indian indigenous cows have very low production, but, at the same time, the ability to survive in harsh environments. Selective and quality breeding will help increase the yield and reduce the maturity period. This will no doubt increase the dairy farmers revenue over time,” he added.
The PHD Chambers, in its statement, stated that as the economy was projected to become a $10-trillion economy in the next eight years, the government has rightly focussed on a roadmap for the developmental transformation of the country.
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