BUDGET 2014 REACTION - Retail Industry - Mr. Harkirat Singh, MD - Woodland

Mr. Harkirat Singh, Managing Director Woodland

With only six weeks to his credit, the FM has done a good job by emphasising on the manufacturing, infrastructure, housing and solar energy sectors in a big way. While few initiatives have been proposed, there have been no big bang announcements.

We welcome the FM's decision to approve Goods & Services tax (GST) by year end and hope that he truly understands its importance to the retail sector. If adopted, the government could put together a common market by seaming together a host of taxes such as Excise, VAT and Octroi.

The announcement to cut excise duty to 6% from 12% on footwear upto MRP of Rs 1000/- pair, is a welcome move for SME's and will help provide them with a level playing field. Competition is always welcome!

I also feel that the announcement of Skill India, a programme to train youth for jobs could lead to more skilled workforce, a gap which needs to be urgently addressed for the growth of the retail sector.

And lastly, more savings, will lead to more consumer spends, giving a boost to the retail sector.

Source : Equity Bulls

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