What are the three things you wish for from the Budget?
Concessional rate of import duty on (power plant) equipment should be extended for the import of spares, during operations (of the plants).
Tax holiday for the existing airports that have been privatized.
Although power sector is eligible for tax holiday under section 80 (I)(a) of the Income-tax (I-T) Act, it is an anomaly that we have been called upon to pay a minimum alternative tax on the book profit of the company.
If you could end one thing, what would that be?
G.V.K. Reddy is chairman, GVK Industries Ltd (Photo: K. Sudheer/Mint)
The power sector, which is currently a state subject, should be a Central subject.
If you were finance minister, what would be the one thing outside your industry you would want in the Budget?
Economic development of various sectors, in my opinion, is skewed in the sense that agriculture contributes a small proportion to the gross domestic product while a majority of the population continues to depend on the sector. Agriculture continues to demonstrate slow growth at 2-3%, whereas the services sector is expanding at a growth rate of 11%. Despite the economic strides we might have made, a majority of India still lives in villages. Thus, “inclusive growth” should emphasize agricultural reforms and programmes that would strike a balance between various sectors while creating backward linkages between industry and agriculture.
What is the one thing you don’t want changed?
Increased allocation for education with a clear human resources education plan that would address the requirements of human capital in the coming years in relation to the “inclusive growth” planned. We should also tailor syllabus/courses keeping in mind the diverse talent required in various sectors of the economy.
Which budget disappointed you the most? Why?
The 2004 budget did not have anything “innovative”.
One proposal you think is shot down in every budget but shouldn’t be.
A healthy reduction in corporate taxes is shot down year after year. While the emphasis in all developing and developed nations is on tax withholdings, we continue to be one of the highest corporate tax-levying countries in the world.
What would you consider to be inclusive growth, financial inclusion?
A growth that is broad-based, addresses inequality in all forms, increases social and economic opportunities and raises the material conditions of the poorest sections of our population so that all become equal and proud partners of the growth story that India is.
G.V.K. Reddy is chairman, GVK Industries Ltd.
By C.R. Sukumar