Updated: 30 Jan 2021, 01:14 PM IST
The Budget for 2020-21 will be presented in the Parliament by Finance Minister Nirmala Sitharaman. There are lots of expectations from the government. This Budget is being presented at a time when the country is still recovering from the devastating effects of COVID-19. So, what do industry experts want from Nirmala Sitharaman this year? Here are some of them talking about their wishlist.
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A stressed sector that needs urgent attention
MSMEs was a stressed sector even before the pandemic and now it is fighting for survival, feels Animesh Saxena, President, Federation of Indian Micro & Small and Medium Enterprises (FISME). For this Budget the sector wants a GST parity between online and offline sellers. FISME did a study with SIDBI on certain MSME clusters where Chinese imports had taken over their businesses. They shortlisted 15 clusters which, if supported by the government, can regain control. There is an urgent need for the government to come up with schemes to save the micro enterprises, feels Saxena.
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Dire need to help restaurants bounce back
One of the segments that suffered the most during the pandemic was the food and hospitality industry. Anurag Katriar, president, National Restaurant Association of India (NRAI) feels that no one thought the crisis would last for so long and it completely shattered the industry. NRAI feels that the ecommerce policy on food services is vague and needs to be looked into. For the Budget NRAI wants liquidity support to make sure that more restaurants don’t shutdown. Rationalization in the GST policy will also help the restaurants survive.
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Say no to knee-jerk reactions
The auto sector took a beating during this pandemic and lockdown. The first quarter was a complete washout for all. But, since then, the auto component sector has been seeing a good recovery, according to Automotive Component Manufacturers Association of India (ACMA), Director General, Vinnie Mehta. He hopes that the budget is more growth sustained and the government has a long term roadmap on the regulations. The government recently introduced CAROTAR to check the rules of origin of imports and also faceless customs clearance. These are benign measures that will help localization.
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Being part of the luxury sector brings its own set of challenges. Gems and jewellery segment saw some dark days during the pandemic but has seen a sharp recovery from November onwards. Colin Shah, Chairman, Gem & Jewellery Export Promotion Council (GJEPC) believes that if India wishes to be number one in the world then it is important that we pay attention to the tariffs. With 12.5% duty and 3% GST India has the most expensive gold in the world. At 7.5% polished diamonds we are the most expensive in this segment too. What India needs is a comprehensive ecommerce policy particularly for the gems and jewelry sector.
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Exports stopped when the world shutdown in 2020 but things have been looking up in this sector. Ajay Sahai, DG & CEO, Federation of Indian Export Organisations (FIEO) says that if one looks at the global trade figure, India saw a shine from the third quarter. But, India has not done well in export is because it has not aligned their exports with the major imports happening globally. For the growth of the export sector India should spend more on research and development. At present it spends between 0.6 to 0.7% of the GDP. An increase in the tax deduction on R&D will help the country focus more on exports.
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