Budget Reactions: Apparel excise-cut Budget's only bright spot: Shoppers Stop

Govind Shrikhande
Shoppers Stop

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The Union Budget, which has been built on the pedestals of Inclusive Growth covering Education, Skill development, Jobs and Income, has good intent and stable measures.

Investments in training & skill development for the youth, women-centric initiatives, Food Security Bill & DCT are in the right direction. No major change in excise duty, service tax & customs duty will maintain retail prices & tame Inflation. The FM aims to spur economic growth through simplification of FII rules, larger sections of society being brought under Insurance coverage, DTC, VDS for Service Tax defaulters, Textile Parks & Apparel Parks, Debt & Infra Bonds etc.

 However, we were expecting to hear about a concrete nationwide roll-out of GST.  There has been no relief for retailers on account of service tax on rent. This is a huge deterrent to Retail Industry’s profitability.

No modification in income tax slabs, surcharge on the super- rich, increase in duty on mobiles, marble, cigarettes, A/C Restaurants may impact discretionary spending.

The only evident silver lining for the retail industry is the rolling back of excise duty on Apparel & Made Ups. This is a great relief to retailers and textile industry and will give a fillip to growth of the industry.

The 2013 Union budget has avoided Populist tendency in order to build a strong economic direction for the future.