RAI Praises Budget Initiatives for Boosting Farmer AID and Disposable Incomes

Hyderabad: The Retailers Association of India, reacting to the Union Budget, said initiatives like financial aid for farmers, tax exemptions, and increased deductions were aimed to enhance disposable incomes, leading to higher spending and consumption growth.

A more direct way could have been ensured to increase consumption, says CA Mohd. Irshad Ahmed, chairman, GST and customs committee, FTCCI.

"The proposals to reduce customs duties on precious metals, mobile phones, and related parts were intended to assist domestic manufacturing, increase export competitiveness, and simplify taxation, rather than to encourage consumer spending. Employment generation schemes proposed in the budget are more direct approaches to boost consumer spending," he said.

The removal of basic customs duty on steel has been well received. "The Budget encourages the steel industry's growth with increased allocations and the removal of the 2.5 per cent basic customs duty on ferronickel imports," said Anand Maloo, president, F&A, MS Agarwal Foundries Pvt. Ltd.

V. Rajashekhar Reddy, president of Credai-Hyderabad, highlighted significant infrastructure investments and land-related reforms, especially under PM Awas Yojna 2.0, aimed at developing 1 crore homes with an investment of `10 lakh crore. He emphasised the alignment of Telangana government's efforts with the Union Budget initiatives, enhancing the real estate sector in Hyderabad.

Musician Richard Maddela noted the mixed impact of the new tax regime, benefiting about 4 crore salaried individuals and pensioners but imposing higher taxes on share holders’ gains. "We will have to wait and see the full impact but those above 15 lakh will be affected for sure," he said.