Budget announcements to benefit some industries, disappoint others

Announcements in the Union Budget are expected to support some sectors here, but have not met the demands of some others.

G. Karthikeyan, convenor of the economic affairs and taxation panel of the Confederation of Indian Industry, Coimbatore Zone, has said in a press release that allocations have been made for different sectors - healthcare, renewable energy, education, etc.

“We will need to wait and see if these will spur growth,” he said. A simplified system has been introduced for personal income tax to increase the disposable income with individuals.

The United Planters Association of Southern India has said that there is a marginal increase in allocation of funds to commodity boards. Reduced allocation in the previous budgets have affected the plantation sector sand disbursements under development schemes are pending. However, there is no relief on some of the issues that are of concern to the plantation sector, such as sharing of social costs, said AL. RM. Nagappan, president of UPASI.

The Federation of Indian Export Organisations Southern Region chairman Israr Ahmed has said that announcements related to logistics, marine exports, and cold supply chain will help the exporters. MSMEs and exporters face financial crunch and introducing the NIVRIK Scheme is expected to enhance credit availability to exporters.

According to J. James, president of Tamil Nadu Association of Cottage and Micro Enterprises, the needs of the micro and cottage units have not been met.

The units sought relaxations in GST and lower interest rates. There is also no move to have a Defence Public Sector Undertaking in Coimbatore.

C. Sivakumar, president of Coimbatore and Tirupur District Micro and Cottage Entrepreneurs Association, said the simplified system for IT and GST will benefit the micro units.

But, the sector needs support on bank finance and there is no announcement related to it.

The Kovai Power Driven Pumps and Spares Manufacturers Association president K. Maniraj said the budget does not have any move to support the micro units that are struggling for survival. Nearly 90 % of the farmers in the country use pumpsets. If they switch over to solar energy, they will not be able to use the pumpsets throughout the day. Agriculture pumpsets should be given full exemption from GST, he said.

R. Kalyanasundaram, president of Tamilnadu Pumps and Spares Manufacturers Association, said the units with less than ₹5 crore annual turnover need not spend of tax audits now and this will lead to savings. The Budget addresses the needs of agriculture, infrastructure, and employment segments, he said.

Coimbatore Compressor Industries Association has said in a press release that while there are several measures proposed to boost rural economy, there is no effort to revive the manufacturing sector. Removal of Dividend Tax will benefit the corporate companies.

There should a similar support to the smaller units.

According to P. Nallathambi, president of Coimbatore SIDCO Industrial Estate Manufacturers Welfare Association, the increase in threshold limit for tax audits is a big relief to small businesses. The allocation of ₹3000 crore for skill development will boost employment opportunities for youth and the extension of time to restructure stressed loans of MSMEs will benefit the units.

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Printable version | Feb 23, 2020 11:48:36 AM |

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