Budget 2017 - overall boost for the industry
“A very workmen like Budget. Got some clear indications about how to broaden the tax base in India, developments around improving transparency, efficiency.”
“Fiscally prudent Budget, as it maintains the government's fiscal consolidation efforts and would lead to stable economic growth if implemented correctly”…
These are some of the initial comments from experts, on this epoch making budget which marked two landmark changes—the combining of the railway and the general budget and second the advancement of the date to February 1st.
Overall the budget roots for the MSME sector to which the majority of the plastics processors belong with various policy measures and tax incentives focusing on their needs. Policy measures outlined encourages entrepreneurship with opportunities springing from enchanced spending on rural development and infrastructure, including roads and railways. The focus on developing one crore skilled workers can be a big boost for the industry. On the tax front, a tax holiday for the startups, lower tax rate of 25% on new manufacturing facilities, and increasing turnover threshold of 2 crore INR for a presumptive tax rate of 8% are all welcome steps.
The projected fiscal deficit at 3.2 percent of GDP for 2017/18 is a prudent fiscal management to preserve financial stability of the economy.
The enchanced allocation to the road and highways sector to around 22% is a positive booster for the economy. The steps on reduction of bank’s lending rates, as an effect of demonetization is an impetus to the industry. The allocation of fun for affordable housing scheme is quite encouraging as also the profit exemption announced for construction of 60 Sq.Mtr which will encourage more promoters to enter into the construction of houses.
The announcement of labour reforms and the allocation of fund of Rs.2,200 Crores for labour skilling would be beneficial to the industry.
The enhancement of allocation of fund to Mudra Bank from Rs.1,36,000 crore to Rs.2,44,000 Crore will encourage the new entrepreneurs and startup companies in the Micro and Small Enterprises.
All these steps, it is hoped, will help in raising the percapita consumption of plastics the boosting the growth of the Plastics Industry.
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