Moneycontrol
Get App
Last Updated : Feb 02, 2017 03:49 PM IST | Source: Moneycontrol.com

Budget 2017 to boost consumer demand in B2B & B2C market

The Budget has a positive tone and is in the right direction. The focus on the infrastructure and manufacturing sector will benefit lubricant manufacturers, since we expect this to boost consumer demand in the B2B and B2C market segments.


Hari Prakash M – CEO, GP Petroleums

"The Budget has a positive tone and is in the right direction. The focus on the infrastructure and manufacturing sector will benefit lubricant manufacturers, since we expect this to boost consumer demand in the B2B and B2C market segments.

The investment of Rs 3,96,135 crore proposed for creating and upgrading infrastructure will enhance construction activities which will see a huge increase in usage of construction machineries thus in turn benefiting the industrial lubricant sector.


The Budget has also focused on the manufacturing sector, considering the sops given to the MSME segment. It not only focusses on increasing domestic consumption but also incentivises local production to support the ethos of Make in India. With additional investment pouring in and enhanced manufacturing activity leading to purchase of extra machinery, the need for industrial lubricants will witness sharp rise.


The concept of creating one gigantic oil PSU that is able to strongly compete on the highly competitive international arena is an interesting move. However, uncertainty around commodity prices, especially that of crude oil, has implications for the fiscal situation of emerging economies.

Close

Overall no negative surprises for the lube industry, though we remain in anticipation of more clarity and the speedy implementation of GST which will have impact on the indirect taxation and supply chain."



Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Feb 2, 2017 03:48 pm
Sections
Follow us on