Friday, August 10, 2012

ABOLISH IMPORT DUTY

THIS IS THE ONLY WAY TOWARDS A SUSTAINABLE CEMENT INDUSTRY

Cement is certainly an important raw commodity / input for the infrastructure & real estate sectors. However, in the cement sector, import duty on inputs is higher than its finished goods that include high import duty on coal, petcoke and gypsum which are major inputs for the production of cement.

I expect reduction or complete abolishment in the present import duty on our input costs. The budget should also include some special schemes for boosting exports, which is the need of the hour. In fact, India’s exports could witness a significant improvement in coming years if the government adopts proactive measures.

I am also hoping for some reduction in the railway freight rate and more wagons to be added to the fleet in this year’s budget. Further, I expect the finance minister to target the GDP growth of at least 8% or higher for the next three financial years.

On tax reforms front, I would be very happy to see the reduction in individual income tax levels as it leaves the consumer with more spending power hence builds consumption leading to higher economic growth.


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