Mahendra Kumar Agarwal's (Gati Ltd.) Reaction On Budget 2012

“The Finance Minister Mr. Pranab Mukherjee has presented a balanced budget with focus on growth while projecting the realistic targets considering the local and global environment. The GDP target of 7.6% with variation of 25 basis points for FY 2012-13 as against GDP of 6.8 % for FY 2011-12 is a good signal. A higher GDP is good for the logistic sector as a robust economy would help the sector grow further."

"Service Tax laws being made clear, it will bring in clarity to reduce litigation . The Budget promises a roll out of GST in a definite time frame which reduces the telescopic effect of taxes and eliminates the boundaries within states encouraging the trade of merchandise across the country. The introduction of DTC, is a near possibility."

"Deduction on account of capex in Cold Chain by specified businesses from 100% to 150% under the IT Act is a welcome measure, though increase in service tax to 12% from 10% and the excise duty increase by 2% are a dampener for the logistic sector. That being said, the Finance Minister has shown a good long term vision towards the Social sector. Also, the allocation of Rs 14000-15,000 crore for the UID programme shows efforts being taken towards the society."

"On the whole the FM did best in delivering a balancing budget."

- Mahendra Kumar Agarwal, Founder and CEO, Gati Ltd.