Reaction of Indian Direct Selling Association on the Budget 2010: By Ms. Chavi Hemanth, Secretary General - IDSA
The onset of the budget 2010-11 has been quite evenhanded, there are particularly three significant highlights for any entrepreneur and working population in the budget. Firstly, the rise in excise duty by 2% followed by income tax slab being broadened and lastly relaxation of policies in Foreign Direct Investment.
In the Union Budget 2010-11, there is an increase in the excise duty by 2 percent. We have been monitoring the market and were expecting this rise in the excise duty. The good news however is that the hike is not exceptionally overbearing, there is a reduction in the corporate surcharge from 10 to 7.5% as well. Further the increase in deduction against R&D from 150-200% especially is very welcoming news for direct selling as all the products in direct selling industry goes through rigorous research & development.
Secondly, the income tax revision in the budget is appreciated by all as this will provide more fluid and disposable income to the tax payer. This will guarantee more cash in the wallet of a common man and will also benefit the direct selling sector/ industry which has a turnover of 3,300 Crores and 1.8 million independent sales force out of which 68% are women. This budget will continue to keep the industry at a double digit growth.
The budget is also directed towards simplifying the FDI regime. The previous trade policies were marked by high tariffs and rigid implications on the import with obligatory import licenses. In the budget 2010-11, both the ownership & control are recognized as central to the FDI policy thereby encouraging a healthy trade between countries.
IDSA as a representative of direct selling industry and our member companies which have always been active for social causes would like to congratulate the Finance Minister for allocating 37% of the total plan allocation to social sectors.
Summing it up we can say that the budget 2010 seems to have a balanced reaction to most. The market has reacted positively to the budget and the new budget has brought a smile to the working class. Honorable Finance minister has presented a budget leading India to a growth trajectory which will take us to a double digit growth in the future.
