Budget 2015: Few reasons to cheer for retail, FMCG sectors
February 28, 2015
The Budget did not have much for the retail, e-commerce or the consumer goods sectors. Apart from announcing a fund for a jobs scheme and encouraging cashless transactions, the Budget has largely ignored these sectors.
- Allocation of Rs 1,000 crore to create a Self-Employment and Talent Utilization (SETU) scheme to boost young entrepreneurs.
- Replace multiple prior regulatory permissions with pre-existing regulatory mechanism to make clearances easier.
- Incentivise credit or debit card transactions, and disincentivise cash transactions to move towards a cashless economy.
- New law to curb black money.
- Focus on skill development across ministries.
- No focus towards retail as an industry.
- No customs duty incentives for most consumer durables and FMCG.
- No steps to increase consumption among consumers.
- No tax benefits for e-commerce players.
- No clarity on GST implementation, apart from the date of implementation, which is April 2016.