Balanced budget: Industry bodies

Published on March 11, 2015 13:52:04 PM
Business

The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) feels that the Finance minister Arun Jaitley has given a direction which will increase development and growth in the country in a phased manner, rather than being a big bang Budget.

Preparing a balanced Budget, the minister has announced policy measures and made allocations to achieve that through ‘Make in India’.

Shiv Kumar Rungta, president, FTAPCCI said, "Infrastructure, Skill Development, Financial Markets and Technology up gradation are the four major areas of focus by the Finance minister in the Union Budget. There is a total shift in the policy towards growth and development. Particularly the Budget is favourable to infrastructure with a sizeable Rs 70,000 crore increase in investment in the sector. We cannot see immediate effects of these decisions but in the coming 2-3 years we can observe a tremendous growth in the industry.”

Ravindra Modi, vice president, FTAPCCI added that the Budget has ensured an annual flow of Rs 20,000 crore for NIIF which will enable to raise debt, and in turn, invest as equity, in infrastructure finance companies. This will result in more investments and further more demand for ‘Make in India’.

Anil Reddy Vennam, senior vice president, FTAPCCI said that the Budget has disappointed the industry of both the states. Neither Telangana nor Andhra Pradesh has received any major incentives, though there were lots of expectations.

"Re-balancing the public private partnership (PPP) models and asking the government to take risks would motivate the private sector in infrastructure and some of the announcements like prior clearances for ultra-mega projects would improve ease of doing business,” said Rana Kapoor, president of the Assocham.

"This budget has laid down the road map for taking India to double digit growth. There are several positives not just for the industry but for every section of society. With this Budget we also see after a long time clear national targets being set for the year 2022 that would mark 75 years of India’s independence,” said Jyotsna Suri, president, Federation of Indian Chambers of Commerce and industry (FICCI).

Vanitha Datla, chairperson, CII Telangana, welcomed the budget as progressive and pointed out that the emphasis on infrastructure spend and tax compliance is the need of the hour, which were addressed. However, she also mentioned, "We expected budgetary allocation to support the incentives promised through State re-organisation act”.

PHD Chamber president Alok B Shriram said that the Chamber was expecting more in MSME segment in terms of its scalability and financial problems. The high expectations on reduction in MAT have also remained unfulfilled.