Expect big bang reforms in Budget; MAT reduced: Adi Godrej

Dated 5th November, 2014

Speaking on the sidelines of the World Economic Forum's (WEF) India summit, Adi Godrej, chairman, Godrej Group said he does not see any problems for the crucial laws to be passed in the parliament and expects Goods and Services Tax (GST), Insurance bills to sail through in the parliament.

Putting forwar his wish list from the Union Budget, he says reduction in Minimum Alternate Tax (MAT) is necessary to spur investments in the upcoming Union Budget. Also there is a need for amendments to the Land Acquisition Act, he says.

Godrej: The insurance reform has been brought to parliament in the Winter session and even the pensions will go with the insurance. Other legislations are also being brought - the constitutional amendment bill for the GST will come in the Budget session. So they are going with big bang reforms.

Q: As far as the land related reforms are concerned we heard the finance minister talk about problems it is having, how critical is it to solve issues relating to land reforms? Godrej: It is very critical because acquiring land for the new projects, defence projects has been held up. So some amendments to the Land Acquisition Act will also be required and I think the government will bring it into parliament.

Q: Given the fact that several reforms have been taken, do you see at least in terms of consumption, that increasing demand within the Indian economy increasing or do we have to wait for some more time? Godrej: Demand is improving, economy is improving. I think economic growth will gradually improve and by 2016-17 and we will be on 8 percent plus growth path.

Q: The Budget process that has actually started from the Indian industry side - what are some of the key reforms and measures that you would like to see in next year? Godrej: It is a long list but one of the very important reforms should be that minimum alternate tax should be reduced so that companies can actually enjoy the incentives given to different industries, different geographical locations.

(This interview is published in moneycontrol.com on 5th Nov, 2014)