Budget Reaction from Arvind Saxena, President and Managing Director, General Motors India

“The budget looks to be a pragmatic one as it focuses on infrastructural development, education, skill development, agriculture, irrigation,  health care and social security schemes. Given the condition of the economy, the direction given in the budget is a positive one and the call for fiscal prudence looks good.  The government’s intention to introduce GST, reduce the corporate tax from 30 to 25 per cent over a 4 year period, simplification of the tax regime, financial sector reforms, GAAR deferral are encouraging news. The steps outlined for the manufacturing, power, coal and mining sectors should spur economic activity  going forward. Having said this, a monitoring mechanism should have been in place to ensure timely implementation of the projects in these sectors. As far as the automotive industry is concerned, we were expecting excise duty cut on all categories of vehicles as the auto industry continues to bleed due to high interest rates, economic slowdown etc. There are some changes in CST and also on customs duty which need to be clarified from the fine print. Having  said this, the  focus on rural roads, highways, expressways, incentives for electric vehicles are welcome decisions. Some of the other announcements made by the finance minister on the direct taxation front are also positive steps. Overall, the budget lays down a blue print for a stable tax regime that can lead to growth in the economy. These proposals and announcements made in the budget, if implemented effectively, should have a positive impact on industry and the economy as a whole going forward. The challenge now is the implementation of the proposals.  Our hope is that the market will respond favorably.”