NEW DELHI: The Union, presented by finance minister Nirmala Sitharaman on Saturday, would help revive consumer sentiment and redirect consumption, leading retailers said.
In addition, the government's drive towards the creation of a solid agricultural infrastructure and efforts to revive local manufacturing along with the micro, small and medium-sized enterprises (MSMEs) and simplify the GST would help many small merchants.
“The 2020 budget would lead to the creation of a new aspirational India, anchored around agriculture, health and education. This budget seeks to strengthen the foundations of the economy with its positive momentum towards the creation of a solid agricultural infrastructure, which will give great impetus to the rural sector of India, said Walmart India president and CEO Krish Iyer.
He also said: The rate cuts in personal income tax rates would increase disposable income in the hands of the Indian middle class, which will improve consumption through improved purchasing power. These two positive budgetary interventions together would drive strong demand growth that drives the Indian economy in turn.
Live plus According to MD and CEO of METRO Cash and Carry India, Arvind Mediratta, the Budget will revive consumer sentiments, and announcements about tax incentives on income will redirect consumption, he said.
Mediratta also welcomed the government's measure to revive the local manufacturing sector and MSMEs.
Tax exemptions for new businesses will encourage new and existing entrepreneurs to do business. The government's announcement to simplify the GST from the returns of April 2020 will help thousands of small merchants, kiranas and restaurant owners, he said.
The CEO of the Indian Retail Association (RAI), Kumar Rajagopalan, said he had two expectations of the Budget this year: Ease of doing business and a national policy for retail.
We are pleased that the 2020 Budget paves the way for both of us in some way. The mandate to the states to adopt model laws and decriminalization of the statues are some welcome movements on those fronts. More money hands on consumers definitely increases consumption, however, we have calibrated to not allow deductions, he said.
Meanwhile, Spykar Lifestyles CEO Sanjay Vakharia said there are no measures to feel good about the Budget.
In addition to some changes in personal income tax rates, not much is seen that affects the history of demand and consumption. The big gun ads that the industry hoped to stimulate the economy were missing, he said.