Soon Kwon, MD, LG Electronics India
The upcoming Union Budget is very crucial in terms of bringing the Indian economy back on the growth track, curbing the Budget deficit and creating an investment friendly environment. The Budget needs to address issues of simplifying tax regulations, improve ease of doing business and accelerate the speed of big-ticket tax reforms. The government must rationalise the tax policies to have a stable tax environment. It will thereby help in successful impact of the government's two critical projects 'Make in India' and 'Digital India'.
The Finance Minister needs to remove the anomaly in the inverted duty structure for the benefit of manufacturing in India. We hope this Budget boosts the growth of consumer durable manufacturing in India with reduction in customs and excise duty for basic raw material essential for manufacturing such as steel, copper etc. This in turn will result in price competitiveness for India-made goods, both domestically and internationally.
Additionally it is important to incentivise infrastructure-related projects in private sector like seaports, airports, railways, roads, warehouses etc. to make Indian infrastructure on par with global best levels. This will reduce the transaction cost and overheads for Indian Industries and will add to product and price competitiveness in the global market.
These initiatives will go a long way in strengthening the fundamentals for driving growth and employment generation that will directly contribute to a strong ecosystem and a re-energised economy. We are hopeful and looking forward to a Budget that will help companies prosper and build a positive sentiment in the country with inclusive growth.
The author is Managing Director, LG Electronics India