Lowering tax on MSME’s is a welcome step: Glenn Saldanha, Glenmark Pharmaceuticals
Government has shown its clear intent towards fast-tracking inflow of FDI, and the scrapping of FIPB is a notable step.
Overall, the Union Budget2017 is a step in the right direction. While it has focused on economic reforms and liberalisation of the economy, it has also allocated funds to bring more irrigation, roads, electricity and sanitation to rural India. Even though the economic survey paints a sober picture for FY16-17 primarily due to a weaker second half, the budget provides the necessary impetus to sustain GDP growth at over 7%.
Lowering tax on MSME’s is a welcome step that would provide a much needed fillip – by creation of jobs and putting more money in their pockets in all sectors including Pharmaceuticals. Government has shown its clear intent towards fast-tracking inflow of FDI, and the scrapping of FIPB is a notable step that would go a long way in supporting the objective of ease of doing business.
Additionally Government’s impetus to reduce the borrowing cost and increase access to credit will surely help businesses to grow. We see the biggest ever allocation to the Infrastructure sector which would benefit all sectors, including the fast growing pharmaceuticals. The finance minister reiterates his commitment to keep current account deficit and fiscal deficit under control GST implementation as soon as possible.
The author, Glenn Saldanha is Chairman and Managing Director, Glenmark Pharmaceuticals Ltd.