The new budget for 2017 is aimed at calming jitters of the demonetisation by encouraging spending and reviving markets with income tax relief.
As expendable income increases, the fashion, art, restaurant and online retail sectors – which have taken a hit since November 8 – are set to make a comeback, though not as quick as many wanted.
Speaking to Mail Today, Kishore Singh, Head of Exhibitions and Publications, DAG Modern, said: ‘A sense of vulnerability had set in since November, making people hold on to the money.’
Speaking of the cap on cash transactions above Rs 3 lakh, he stated: ‘When you are talking about art, Rs 3 lakh doesn’t come in the purview.
‘Art at one level is luxury, and the amounts we are talking about are much higher, from Rs 50 lakh to Rs 5 crore.
‘Such high-end transactions are done by checks, and auctions have brought in transparency in the market.’
As for the impact of cash limit transactions on the fashion world, Narresh Kukreja, Creative Director of Shivan & Narresh, explained: ‘This would encourage clients to make wiser and practical choices with the money spent and invariably push designers to give more value for products, making the industry more competitive, qualitative and legitimate.’
Reducing income tax for small firms will also help designers increase profits and thereby expand their business.
However, restaurateurs still have to deal with high taxes despite being major contributors to the economy.
Riyaaz Amlani, President of the National Restaurant Association of India (NRAI) said: ‘There are no specific announcements made for the restaurant industry, even though according to the NRAI India Food Services Report 2016, the total Food Services Market today stands at Rs 3,09,110 crore, which is about 1.6 times the size of Railways.
‘The restaurant industry will continue to suffer for now under heavy taxations and licensing with no on ground change in Ease of Doing Business.’
Regarding digital payments, Tina Bhardwaj, Designer, Mad- Sam TinZin says: ‘It will definitely help increase the turnover of a company.’
