In the backdrop of the economic slowdown, advertising industry leaders share their expectations from the Union Budget to be presented this week by Finance Minister Nirmala Sitharaman
This is perhaps the most important budget for the Narendra Modi government. Despite several steps taken by the government to boost consumer sentiment, the signs have not been too encouraging for the economy. Therefore all eyes will be on Finance Minister Nirmala Sitharaman, who will present her second budget on February 1.
Pre-budget expectations are high across sectors. The advertising industry for one has been feeling the pinch of marketing budget cuts and are hoping that the FM will present a growth-oriented budget which will help revive confidence.
According to Anand Bhadkamkar, CEO, Dentsu Aegis Network (DAN) India, "Expectations from any budget is always to seek an impetus for growth and the current government’s actions over the past six months do show that it is trying its best to induce that growth. I am expecting the budget to be more people-friendly, sternly growth-oriented and decisively focused on investments into infrastructure and developments. I also expect to see a lot more push for Make in India initiatives, thereby providing stimulus to the manufacturing sector and thus, creating growth opportunities for MSMEs – perhaps through Tax Holidays and/or beneficial taxations.
"As far as advertising is concerned, it’s a prerequisite that consumer sentiments move north. Advertising leads the way when the economy starts growing. Consequently, I hope the upcoming budget provides better personal taxation benefits which, in turn, should help bring in more cash into the taxpayers’ hands, leading to an increase in their ability to spend. Industries such as FMCG, automotive, e-commerce and BFSI are key contributors to advertising spends and I expect these categories to benefit from the impending budget.
"At present, we need this growth stimulus and an upward direction from the forthcoming budget. I expect simplification on the tax compliance requirements with further digitization and transparency in the functioning of the tax department. This budget must offer an opportunity to send across the right message. It must generate a strong belief in India’s growth aspirations and drive further investments across the country."
Underlying how the a key ask from Budget 2020 would be to find ways to kick start the economy, Hareesh Tibrewala, Joint CEO, Mirum India says, “If I have to list two specific areas for the government to address, the first would be put more money into the pocket of the consumer, that spurs spending and secondly to bring confidence back into our financial institutions and the fiscal system.
The common expectation from this Budget, explains Bharat Khatri, Country Head Xaxis India, is one that triggers growth. He says, “I sincerely believe that this Budget will trigger credit growth that results in industrial activity, which in turn is expected to trigger consumption growth. Anything that drives GDP growth, drives advertising growth even more. So, the new budget needs to be growth-oriented and needs to put more money in the pockets of the rural and urban consumers to boost spending.
While the Finance Minister did reduce corporate tax, there is a pressing need to rationalise GST in advertising as 18 per cent is very high. The process and procedures need to be simplified as they are cumbersome, unproductive and waste a lot of time.
I am also optimistic that we will see a renewed focus on growing digital infrastructure and smart cities with more Wi-Fi connection points, making it possible to bring new users and customers to Indian companies.”
This is perhaps the most important budget for the Narendra Modi government. Despite several steps taken by the government to boost consumer sentiment, the signs have not been too encouraging for the economy. Therefore all eyes will be on Finance Minister Nirmala Sitharaman, who will present her second budget on February 1.
Pre-budget expectations are high across sectors. The advertising industry for one has been feeling the pinch of marketing budget cuts and are hoping that the FM will present a growth-oriented budget which will help revive confidence.
According to Anand Bhadkamkar, CEO, Dentsu Aegis Network (DAN) India, "Expectations from any budget is always to seek an impetus for growth and the current government’s actions over the past six months do show that it is trying its best to induce that growth. I am expecting the budget to be more people-friendly, sternly growth-oriented and decisively focused on investments into infrastructure and developments. I also expect to see a lot more push for Make in India initiatives, thereby providing stimulus to the manufacturing sector and thus, creating growth opportunities for MSMEs – perhaps through Tax Holidays and/or beneficial taxations.
"As far as advertising is concerned, it’s a prerequisite that consumer sentiments move north. Advertising leads the way when the economy starts growing. Consequently, I hope the upcoming budget provides better personal taxation benefits which, in turn, should help bring in more cash into the taxpayers’ hands, leading to an increase in their ability to spend. Industries such as FMCG, automotive, e-commerce and BFSI are key contributors to advertising spends and I expect these categories to benefit from the impending budget.
"At present, we need this growth stimulus and an upward direction from the forthcoming budget. I expect simplification on the tax compliance requirements with further digitization and transparency in the functioning of the tax department. This budget must offer an opportunity to send across the right message. It must generate a strong belief in India’s growth aspirations and drive further investments across the country."
Underlying how the a key ask from Budget 2020 would be to find ways to kick start the economy, Hareesh Tibrewala, Joint CEO, Mirum India says, “If I have to list two specific areas for the government to address, the first would be put more money into the pocket of the consumer, that spurs spending and secondly to bring confidence back into our financial institutions and the fiscal system.
The common expectation from this Budget, explains Bharat Khatri, Country Head Xaxis India, is one that triggers growth. He says, “I sincerely believe that this Budget will trigger credit growth that results in industrial activity, which in turn is expected to trigger consumption growth. Anything that drives GDP growth, drives advertising growth even more. So, the new budget needs to be growth-oriented and needs to put more money in the pockets of the rural and urban consumers to boost spending.
While the Finance Minister did reduce corporate tax, there is a pressing need to rationalise GST in advertising as 18 per cent is very high. The process and procedures need to be simplified as they are cumbersome, unproductive and waste a lot of time.
I am also optimistic that we will see a renewed focus on growing digital infrastructure and smart cities with more Wi-Fi connection points, making it possible to bring new users and customers to Indian companies.”
