|
Commenting on the budget provisions Mr Malvinder M Singh, Chairman CII Northern Region & Executive Chairman, Fortis Healthcare Ltd, said that that the budget was an inclusive growth oriented budget. One of the key concerns against which the budget was presented was the high fiscal deficit and global economic slowdown. In this context, Mr Singh appreciated the efforts towards adhering to the roadmap for fiscal consolidation as suggested by the Kelkar Committee.
He said that given the economic manoeuvring space that the Government had, the budget balances well the measures for promoting more equitable growth and measures for creating a conducive environment for growth. He added that while the budget could have had some more direct measures for boosting investment and growth, it does spell out many steps to address the constraints which the industry is facing.
Elaborating on the same, he appreciated measures to address the power situation in the country by exploring PPPs for coal production, incentivising states for financial restructuring of SEBs, extending the tax holiday on power plants to 2014 & encouraging ‘energy from waste’. Improving connectivity through establishment of 2 new ports, creation of grid connecting waterways, roads and ports, reiteration of the Government’s commitment to the industrial corridors will help improve the logistics for the industry. The announcement to set up a Road Regulatory Authority will provide a fillip to road building, he added.
The measures for promoting housing specially low cost housing will have a multiplier effect on the economy, he added. In terms of inclusive growth the special focus on women empowerment including the first ever women’s bank, higher allocations for health, education & skill development and welfare of the SC/ST and minorities are notable.
Sharing his initial response on the proposals of the Union Budget 2013-14, Mr Jayant Davar, Deputy Chairman, CII Northern Region and Vice Chairman & MD, Sandhar Technologies Ltd said that the Finance Minister’s announcement regarding the 15% investment allowance for projects with a minimum investment of 100 crores in plant and machinery will encourage investments in the manufacturing sector.
For the development of the MSME sector, the announcements are positive. To encourage MSMEs to grow and graduate to the next level, the decision to continue non tax benefits for additional 3 years after they have moved to large category is a welcome one. Availability of finance is a key bottleneck for the MSMEs. In this context, the proposal to enhance the refinancing capability of SIDBI to Rs 10,000 crore per year and to create a corpus of Rs 500 crore for setting up a Credit Guarantee Fund for factoring are important steps.
Mr Davar also welcomed the continued thrust on skill development, urban development, education and healthcare.
Sharing his views on some of the key tax provisions, Mr Richard Rekhy, Chairman Regional Committee on Economic Affairs & Taxation, said that CII is excited about the Government’s commitment to roll out the GST and the DTC at the earliest. He added that CII has been advocating for fast track implementation of GST a DTC – key tax reforms which will provide a big boost to the Indian economy.
Mr Rekhy welcomed the priority that the Finance Minister placed on foreign investments. He also welcomed the series of measures related to Capital markets – specially the removal of the ambiguity in the definition of FII and FDI, measures to develop the debt markets – which in turn will help make available long term finance, and enlarging the list of eligible securities in which Pension Funds and Provident Funds may invest.
Sharing the northern perspective of the Union Budget, Mr Pikender Pal Singh, Regional Director, CII Northern Region said that the focus on agriculture will give a boost to the regional economy, the sector accounting for 31.7% of the national agri GDP. The allocation of Rs 5,000 crore to NABARD to finance construction of warehouses, godowns, silos and cold storage will help strengthen the agri infrastructure.
The original Green Revolution states like Punjab & Haryana are facing problems of stagnating yields and over-exploitation of water resources. The proposed crop diversification programme with an allocation of Rs 500 crores will help address thee issues. Enhancement of the agricultural credit target to Rs 7 lakh crore and extension of interest subvention scheme for agri loans to cover private sector SCBs will enhance the credit availability to the small and marginal farmers.
Some of the other measures that would specifically benefit the northern region include – announcement of PMGSY –II which would benefit Haryana, Rajasthan and Punjab, the transmission system connecting Srinagar - Leh, continuation of the Technology Upgradation Fund (TUF) scheme for the textiles sector in the 12th Plan, setting up of Textiles Parks under SITP, Integrated Processing Development Scheme for checking the environmental degradation caused by the Textile industry, proposals for supporting handlooms and traditional industries, 10,000 buses under JNNURM for hilly areas and Rs 100 crores each allocation to AMU and BHU.
|