Budget 2019 – Government commits to invest in infrastructure

Government lays down road map to make India a US$ 5 trillion economy

252
Budget
Presentation of Union Budget 2019-2020 in Parliament

The finance minister of India, Nirmala Sitharaman, presented the Union Budget 2019-2020 in Parliament on 5 July 2019. She chose a red bag to carry a budget report instead of the usual brown briefcase. The budget reflected the government’s vision of growing the Indian economy to reach a GDP of US$ 5 trillion by 2025. It emphasized food related sectors such as agriculture, dairy and fisheries.

Sitharaman stressed both self-sufficiency and export of food grains. She mentioned that “Annadata can also be Urjadata” and assured the government’s committment to invest widely in agriculture infrastructure before announcing that over the next five years, 10,000 new Farmer Producer Organizations (FPO) will be formed.

She spoke about the promotion of the milk and dairy industry through cooperatives by creating infrastructure for cattle feed manufacturing, milk procurement, processing and marketing. She also addressed the need for a robust fisheries management framework and announced that a framework under Pradhan Mantri Matsya Sampada Yojana (PMMSY) by the Department of Fisheries would be established. This framework will address critical gaps in the value chain, such as traceability, production, post-harvest management and quality control.

Other highlights of the budget included steps to increase investments in MSMEs, start-ups, Make in India and electric mobility; measures to simplify tax compliance; announcements for women of the country; special emphasis on strengthening the start-up ecosystem in India; ease of local sourcing norms for FDI in single brand retail; and an increase in fuel prices.

Sandeep Sabharwal, chief executive officer, SLCM Group said that the finance minister has underscored the role of cooperatives and FPOs in ensuring better prices of crops. He said, “The government’s decision to form 10,000 new farmer producer organizations will help in ensuring economies of scale for farmers. The promise to set up livelihood business incubators and technology business incubators for producing skilled entrepreneurs in agro-rural industries will give a boost to the rural entrepreneurship.”

Sabharwal praised the government’s decision on Zero Budget Farming, which will help make farmers self-reliant. He added, “The decision to provide one woman in every self-help group, a loan of up to Rs 1 lac under the Mudra Yojana Scheme will encourage more and more women to come forward and participate in the economic process in rural India. The decision to increase the expenditure in rural infrastructure development under PMGSY is another positive move which will help in boosting the rural economy. For industry, the decision to bring down the corporate tax for companies with an annual turnover of up to Rs 400 crore to 25% from 30% earlier will help them in a big way.”

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are grown similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

Subscribe Now
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here