#Budget2014: We need robust fiscal policy to support growth and monetary policy: Aneel Murarka

Aneel Murarka, Managing Director of Mirachem Industries is a man on a mission. ‘Narayani Seva Sansthan’, at Narayani Dham, Lonavala is one such outstanding institution where Aneel’s family is doing charity through the C.B. Murarka Charitable Trust. Mirachem Industriies’ commenced its journey in the year 1975 with a modest beginning, offering domestic laundry products. The zeal to grow and its commitment towards the Indian consumers encouraged Mirachem Industriies to carve a niche for itself and is now reckoned amongst the prominent manufacturers and suppliers of highest quality Specialty Chemicals in the textile industry.

dna spoke to Mr Murarka about his expectations from the upcoming budget as Narendra Modi is known to possess strong business acumen and create healthy business environment and the entire business community is waiting for the government to roll out its reform plans. 

On expectations from Budget 2014: 

The expectation of the Union Budget makes one feel like guessing the question of a forthcoming exam.  The reality is that we are seeking the answers from the government in the form of pragmatic policies and schemes that can rejuvenate the economy.   

The Finance Minister would obviously look at: Need for fiscal consolidation; importance of foreign investments for financing; creating a balance between price stability and growth; improving the financial sector reforms; Infrastructure development; boosting manufacturing growth; encourage domestic value addition; having planned urbanization, and boosting skill development.

That’s like stating the syllabus, so now you can judge as to how much percent of my expectations will perhaps match with the Union Budget that will finally be presented.     

On controling Inflation and cutting Down Fiscal deficit:

Policies of the new government should aim towards catalyzing the reform process to put the economy on a sustainable and balanced high-growth path to win investor confidence in the domestic as well as global sector. There has to be a robust fiscal policy to support growth and monetary policy.  The budget should stress on initiating measures to control price rises, cut down fiscal deficit and control inflation. 

Encourage people to spend more, spur savings and home buying

From a common man perspective, one tend to look at just the taxable amount that the government announces and make a judgement on the budget.  Raising the tax exemption limits along with government deductions levels for investment schemes will encourage people to spend more, spur savings and home buying – increase the current limits of deduction on the home loan amount.  These can naturally boost growth.  

On boosting MSME sector: 

MSME sector is the backbone of the Indian economy, over the years with escalating costs of raw material and high interest rates most businesses have found it challenging to sustain, as their profitability margins got affected and would be looking for some form of support from the government to revive the sector.  

With the probability of a revival in the global economy, MSMEs should be in a position to tap the export opportunities and tap the potential overseas customers. The leverage can be achieved with greater support from the Government in boosting exports, in the form of a marketing platform to identify potential buyers.  

Reforms in the Labour act, free flow of goods, and concession on excise duty

Policy towards Managing Cost and boosting access to bank credit and markets, besides red-tape, labour and taxation remain the main challenges faced by the MSMEs in the country. The large scale sector industries get all the resources of finance from aboard at a very cheap cost, as they are known.  Reforms in the Labour act, with policy that facilitates free flow of goods, and concession on excise duty would go a long way in boosting the sector.

Expecting people’s pragmatic approach: 

Interestingly the recent hike in prices of railway tickets while attracting some reactions, also showed the pragmatism of the public at large who were quite emoted with the measures taken by the government, so would it be with the budget.  The people of this country want to see India truly shining.  Patience is a given – Performance is the need of the hour, so effective Implementation to the roads of economic progress holds the key to success.