Jaquar Group boss optimistic Budget 2020 will increase consumer's purchasing power, improve standard of living

Will the Union Budget 2020 take India closer to being a $5 trillion economy by 2025?

By Rajesh Mehra

The overall Budget presented by Finance Minister Nirmala Sitharaman has touched upon the various segments of the economy in a structural microcosmic manner. My key observations below:

Real Estate – value vs premium
Given the proposed Budget, we definitely have witnessed the steps of putting back the purchasing power in the hands of the consumer with the revised personal income tax slabs especially for the lower and middle-income segments which should boost the affordable housing segment. However, the sector would need further support in the form of a reduction on taxes on hardware and building material. The automation proposed in filing and data collection is a step in the right direction. Adapting and implementation will determine the overall impact.

Retail
The announcements pertaining to agricultural economy and increasing disposable personal income will revive the rural and semi-urban demand space. It will also serve to raise the bar on the general standard of living, which is a definite boost for the segments operating in the retail space, especially in Tier-2, 3 and 4 markets on the country.


Making in India
In terms of manufacturing, boosting the electronics and medical manufacturing market is welcome. While the ease of doing business in India has improved significantly, the industry was looking forward to incentives for local manufacturers. This definitely comes in the form of the increase in custom duty from 20 per cent to 25 per cent on lamps and lighting fittings. This boosts businesses that are pushing to scale up operations within the country and increasing manufacturing footprint through continued investments.

Swachh Bharat
For the country's collective vision to become 'open defecation free' (ODF), the allocation of Rs 12,300 crore towards the Swachh Bharat Mission is exemplary. Various organisations are committed to this vision – not just in product offering, but also from a manufacturing sustainability perspective. While a GST re-calibration for the affordable segment especially on products like pipes, faucets and sanitary ware might have helped, the nation is united in meeting this goal.

(The author is Director & Promoter of Jaquar Group)