Photographs: Reuters S Ramesh, President, Finance and Planning, Lupin
The FM's Budget, simply put, is long on intent but short on content. While the strategic focus of the budget on various matters such as fiscal consolidation is explicit, the process by which it will translate into a tangible outcome is still to be made unequivocal.
The Budget has little for the pharma industry. While the weighted deduction on R&D is a necessary fiscal incentive given to the entire sector in several parts of the globe, there was also a need to incentivise exports through fiscal measures to maintain the sector's global competitive situation, which unfortunately is not the case with the MAT introduction on SEZs and the phasing out of EOUs.
Long on intent, short on content
Image: Clarity needed on insurance law billPhotographs: Reuters
The details of this bill were not shared in the Budget speech but we do hope that this long pending bill to allow for a higher share of FDI in the insurance sector will be tabled soon.
Increasing the FDI cap to 49 per cent from the existing 26 per cent will bring in much needed capital to the industry and will help increase insurance penetration levels in the country.
Reforms are outside the Budget
Image: Budget has lost its significancePhotographs: Reuters Kislay Kanth, Head of Research, MAPE Securities
The Union Budget for FY2012 was presented in the parliament. The Budget over the years has continuously lost its significance in the context of overall economic growth and corporate performance, as fewer reforms can be pushed as a part of the Budget itself.
Most of the reforms are outside the budget.
Reforms are outside the Budget
Image: Aim is to boost rural incomePhotographs: Reuters
The mere fact that the government could present a good Budget is good enough for markets. The clear theme is social inclusion and boosting rural income and consumption base, which will help the economy in the longer term.
Govt committed to sustainable growth
Image: There are 13 million vehicles in IndiaPhotographs: Reuters Kishor Patil, CEO and MD, KPIT Cummins Infosystems
The Finance Minister's announcement on setting up of a National Mission for Hybrid and Electric vehicles coupled with reduction in excise duty on the hybrid conversion kits and their parts, are welcome measures that reinforce government's commitment to promote sustainable growth in India through hybrid and electric vehicles.
There are about 13 million vehicles in India currently, and there definitely exists a huge opportunity for solutions that can make these vehicles more fuel efficient and reduce green house gas emissions.
Govt committed to sustainable growth
Image: Budget will encourage use of fuel efficient vehiclesPhotographs: Reuters
These moves will also provide a very strong boost to the development of indigenous hybrid technologies.
As a leader in technology solutions for automotive and transportation industry, we are committed to foster innovation in this space and will continue to bring in frugal and sustainable solutions like REVOLO that increase fuel efficiency and reduce green house gas emissions of the vehicles.
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