Implementation of GST in 2017 helped some sectors of manufacturingto improve their operations to an extent. Since 2018-19 Union Budget will be the first post-GST Budget of India, we are expecting some changes in the structure, especially in three areas.
First, considering Government’s desire towards making‘Make in India’ campaign a success, we anticipate specific measures such as lower import duties on certain critical components, additional tax incentives on in-house R&D, incentivizing energy efficient products and manufacturing processes including use of solar energy and boosting availability of skilled labor.
Second, we are optimistic about measures regarding Ease of Doing Business, where one can hope for lower corporate tax ratesas indicated few years back ‘by the Financial Minister, lower borrowing rates and further simplification of regulations & approvalprocesses.
Third, we are hopeful that this budget will further accelerate the growth in logistics and transport infrastructure, which is vital for growth.