Adgully Exclusive | Industry wishlist for Budget 2011-2012

Nirakar Pradhan, Chief Investment Officer, Future Generali India Life Insurance Co. Ltd

Budget 2011-12 is a unique opportunity before the government to improve its battered image before domestic public, boost trust and confidence of foreign investors.

I expect Inflation Control: Revamp PDS, address supply side issues, enhanced FDI in retail. I believe we need to have a Defined road map for fiscal discipline; Deficit target for FY 2012 should be contained at 4.8%, and Net Government borrowings should be contained at Rs 3.5 trn. In my personal view, growth momentum will continue through higher infrastructure spends. As this is the last year of the Plan period (2007-12), to increase spends in physical (roads, ports, power etc), social (health and education sectors) and financial (improved corporate bond market enhanced FDI in Insurance) infrastructure.

In my opinion, a possible surprise could be a general reduction in tax rates/ increase in standard deduction limits, to buoy demand, and non-Plan could be the divestment target around USD 7-8 bn I believe, intent statement on key reforms like GST, DTC, liberalization in FDI limits etc are likely. According to me, hike in excise duty in certain sectors like Auto & FMCG is likely.

Kumar Kandaswami, Leader Manufacturing, Deloitte in India-

I hope there is increased emphasis on infrastructure development. Areas such as power generation, transmission & distribution, water, roads, urban transportation require an enormous boost to sustain manufacturing growth and to improve manufacturing competitiveness

Given the high levels and fluctuations in the case of price of farm products, there may be renewed focus on food processing, storage and disintermediation. Any opening up of the retail sector may also have a positive impact on these aspects of the agri supply chains. Given the expected price increases in crude, the process of creating the gas supply infrastructure across the country may be accelerated. Alternate fuel vehicles may get support

The simulation related lowering of duties may be reversed to their original levels. Given the circumstances and challenges in and around the country, the budget allocation for upgrading the defense and homeland security capabilities would remain high. Given the intention of the government to be self-reliant, the conditions for a new entrant may not be as challenging as before. In this scenario, it is quite conceivable that there will be a fair number of M & A transactions in the sector

While it is not expected that GST will be implemented from 1 April, a firm commitment on the date of roll out will be welcome. Most sectors would have the opportunity to significantly optimize their supply chains and get far more efficient

Ignoring childhood poverty will affect the nation's economic standing and it's not insubstantial growth ambitions as well. Whether you are a government looking at fast tracking industrial growth, a business house hoping for better profit margins or a salaried professional working towards better lifestyle, the large numbers of Indian children living and growing up in extreme poverty and destitution can and will affect life and business. India's growth story is not immune from the impact of its large scale poverty. It is time to push the choice towards our people, our children. We at CRY are asking for 10% of India's GDP to be invested in children's education and health. For longer term growth, this is the barest minimum. | By Prabha Hegde [prabha(at)adgully.com]