Budget is positive for overall growth - Dabur

01 Mar '08

2 min read

After the Union Budget of 2008-09, Fibre2fashion contacted Dabur India CEO Mr Sunil Duggal, to find out what he felt about the budget.

Mr Duggal seemed quite satisfied with the Budget and said, "The Union Budget 2007-08, which aims to put the agriculture sector back on the growth track, is overall positive for the FMCG industry."

He explained, "Mr Chidambaram's decision to reduce CENVAT rate to 14 percent is in line with the GST roadmap, and will go a long way in achieving the Finance Minister's goal of taking the manufacturing sector growth rate to double digits."

He further added that the Government's decision to reduce CST to 2 percent is also a positive step forward, and will help bring down costs. "The cut in excise duty, I feel, will result in overall cost efficiencies and savings for Dabur India," he said.

Meanwhile, Dabur India believes that the decision to put agriculture and farm sector on the center stage will surely boost the rural economy and improve demand, which will foster faster growth for FMCG companies.

He was also optimistic, saying, "The changes in the provisions of law pertaining to Fringe Benefit Tax (FBT), like exclusion of guest houses and events for employees from the purview of FBT, will surely provide some relief to corporates."

Fibre2fashion News Desk - India

More Textiles News - India...