The Hindu : Business : Progressive, forward-looking Budget

Online edition of India's National Newspaper
Friday, Jul 09, 2004

Business

Business

Progressive, forward-looking Budget

By P. K. Bhardwaj

NEW DELHI, JULY 8. Like the Railway Budget there were no or few brickbats from the trade and industry for the Union Budget presented today as they lapped it as `progressive and forward-looking.'

Generally applauding the United Progressive Alliance's maiden budget, the country's apex chambers and captains of Indian industry said this Budget would drive demand and encourage investment that would benefit the corporate sector as a whole. However some discordant notes were sounded the metal sector.

"This is a budget with an eye on the big picture and presents a vision for growth and development,'' the CII Chief, Sunil Kant Munjal, said pointing to its focus on the crucial areas of agriculture, infrastructure, education and health and welcoming the Finance Minister's clear targets.

The President of the Federation of Indian Chamber of Commerce and Industry president, Y. K. Modi, said the Budget had unveiled a blueprint for the overall development of the country within the framework of the National Common Minimum Programme and would help sustain the growth process.

Relief in duties on agricultural implements and tools, exemption of excise on tractions and corporate tax on agro and various schemes for setting up rural infrastructure would create conditions for a quantum jump in the growth of agro-economy, he said.

The Associated Chambers of Commerce and Industry President, M. K. Sanghi lauded the budgetary proposals saying it were "for the people, of the people and roadmap for rural and social development.'' The priority in the Budget proposals to drastically improve the lot of agriculture and propel future growth of agro and food processing and horticulture sectors besides revolutionising the Indian education system.

He also supported the cess on education and incorporating provisions for improving and strengthening the ITIs to further technological development across the country.

The Ashok Leyland Managing Director, R. Seshsayee, said the Budget was a `bold ideological statement' that asserted the growth and reforms path would continue. He also expressed confidence that private sector investment in Defence would see a spurt.

Similarly the Maruti Udyog Chairman, Jagdish Khattar, said it was a positive budget. "It gave the auto sector few sops even though it did not expect much. So even these small mercies come as a happy news," he added.

The Federation of Associations of Small Industries of India while welcoming raising of ceiling for loans under the capital subsidy of expressed disappointment over dereservation of 85 items saying that it was a matter of concern. There is need to rise the SSI excise exemption limit from Rs. 300 lakhs to Rs. 500 lakhs, Ashok Poddar, President of FASSI, said.

Sharing the fears that these duty changes would put pressure on the margins, the Chairman of the Steel Authority of India, V. S. Jain, said there might not be any immediate impact in view of buoyant global prices. However, the domestic steel prices would be affected due to excise, he said.

Printer friendly page
Send this article to Friends by E-Mail

Business