Budget 2020: Expect govt to help infuse positivity, fuel consumer demand, says Usha International CEO Dinesh Chhabra

The government should take steps that can help infuse positivity, fuel consumer demand and stabilize growth patterns in Budget 2020, believes Dinesh Chhabra, CEO, Usha International. Chabbra said that the upcoming Budget is keenly awaited by all stakeholers who expect it to revive consumption and spur economic growth. The Union Budget will be presented on February 1 by Finance Minister Nirmala Sitharaman and comes at an interesting time for the Indian economy.

"Budget 2020 is being keenly awaited by all stakeholders fueled with the expectations of it reviving consumption and spurring growth in the industry. GDP is at lowest in the last decade and hence Industry has lot of expectations from the budget. We expect Government to take long-term initiatives in Budget 2020 that will help infuse positivity , fueling consumer demand and stabilize growth patterns in future," Chhabra said.

He added that one of the key measures in the sector could be reduction of GST rates on electronic components and rationalization of the slabs for various categories of products.

"GST rate cuts on components would provide manufacturers with an incentive to expand production. It will also ensure that the cost of consumer durables are reduced, thereby further increasing demand and consumption. This will help reduce import of components into India, and would be beneficial both from the point of view of government’s “Make in India” as well as the Phased Manufacturing Program (PMP)," Chhabra added.

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Amid the rumors of government making changes to the income tax slabs and exemption given under Section 80C, Chabbra emphasised on the need for measures that give more cash in the hands of people, which can eventually help in increasing consumption.

"In addition, policy measure to re-energize the NBFC’s, some of which were AAA rated at one time, and restart the lending cycle will also help put more cash in the hands of the consumers, thereby reviving demand. These measures will encourage this segment to grow at a faster pace. We are hopeful that these steps from the government  will help spur revival in demand and consumption, bringing cheer to both industry and consumers," he said.