Post Budget Reaction - Mr. Govind Shrikhande - Customer Care Associate and Managing Director - Shoppers Stop

Mr. Govind Shrikhande - Customer Care Associate and Managing Director - Shoppers Stop

Great Beginning

- Every new innings requires a steady approach and resolve.

Especially so, when the economy is soft, global conditions are unpredictable and overall confidence is low.

The First budget by the BJP govt, takes a Confident and Sound approach to the issues, considering the legacy of problems they have inherited from the earlier government.

The Budget has Five Key Focus areas :

1. Kickstart Economic Growth and infrastructure:

A number of Steps are visible in this direction :

- Increase in FDI limits in Defence & Insurance
- Funds for Smart Cities
- Funds for Rural Housing, Rural Power, Agriculture Fund
- Rail Connectivity in North East,
- Warehousing Quality Improvement
- Revival of SEZ's
- Investment in Ultra Modern Solar projects
- E Connectivity with Government
- Bank loans for Infra projects, REITS, Tax holiday for power Projects
- Each of these is bound to have a multiplier effect on Investments, GDP growth and Job Creation.

2. Taxation

- Higher Exemptions in Salaries, Investments, PPF would lead to more money in the hands of Consumers.
- Lower taxes in a few products would lead to lower prices and taming inflation.
- This again can lead to higher savings as well as spending and therefore can give a boost to the economic activity.

3. Multi Skilling and education

- More funds for Skill India
- Establishing 4 New AIIMS
- Establishing 5 new IIT's
- New agriculture University
- New Sports University
All these should improve employability of Youth.

4. Fiscal discipline

The finance Minister has taken a Brave Target of achieving a 4.1 % deficit target.

The target is tough but the resolve is worth appreciating.

The announcement of getting GST on track by December is good news for managing the long term Fiscal discipline and Taxation.

5.Industry :

- Retrospective taxes will never happen again.
- New Industrial and textile clusters
- 10000 Cr Rs Fund for start ups
- IFRS from 2016
- Each of these are sound steps to get the industries' confidence back
- There are many small doses aimed at specific issues like drinking water etc

In summary, the budget is a great beginning towards bringing back "Acche Din " for India.

Shares of SHOPPERS STOP LTD. was last trading in BSE at Rs.389 as compared to the previous close of Rs. 374.95. The total number of shares traded during the day was 1172 in over 262 trades.

The stock hit an intraday high of Rs. 395 and intraday low of 373. The net turnover during the day was Rs. 449642.

Source : Equity Bulls

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