Post-Budget Reaction by Mr. Shashi Kiran Shetty, Executive Chairman of Allcargo Logistics
Modi Government’s first full Budget presented by Mr. Jaitley today holds a lot of promise for the Corporate sector and Rural India, which primarily addresses to the larger section of the society. The proposed reforms in Infrastructure is one of the key highlights of the Budget. A higher allocation of Rs 70,000 crore in the infrastructure space over last fiscal will provide further wings to the economy to achieve over 8% growth in the coming years.
Creating jobs and reducing unemployment seems to be the area of priority for the government and to achieve this there is a concentrated effort to remove hurdles for doing business in India. Reducing corporate Tax from 30% to 25% over next 4 years, to spruce further investments by companies is a pro-growth move.
The #MakeinIndia Budget as rightly named, showcases strong focus on making India a manufacturing hub of the world. Apart from creating more jobs and making India export competitive, this initiative will boost Logistics companies providing integration solution. Additional one lakh km of Road projects will ease congestion on existing infrastructure. The industry is looking forward to GST becoming a reality in April 2016, with the hope that the effective tax rate decided would translate to a collaborative gain for corporate and consumers.
To conclude, Logistics as a sector gets indirectly benefited when any of the related industries like manufacturing, transport, trade, energy and consumer goods see growth coming their way. Hence, even if direct announcements related to Logistics have not found place in the today’s speech, we will still remain upbeat on Mr. Jaitley’s vision for economic growth.