Most captains of trade and commerce termed Friday’s Union Budget as a good one, focused on growth and development.
There was concern at little mention of water conservation, pollution management, and responsible growth without damaging natural resources as well.
“The NBFC guarantee fund will ease the current liquidity crisis. Focus on loans to self-help group (SHG) members and interest subventions for Micro, Small and Medium Enterprises (MSME) and electric vehicles (EVs) will boost the economy. The proposal to set up social exchange will be a breakthrough for social enterprises and voluntary organisations to raise funds,” said K. Paul Thomas, MD and CEO, ESAF Small Finance Bank and chairman, CII, Kerala chapter.
The initiatives announced for transportation and augmenting transportation infrastructure are welcome. The government’s plans to use rivers for cargo transport and to decongest roads and rail network are timely and a great boon to Kerala. The government’s decision to streamline labour laws into four basic labour codes was long awaited, said V. Venugopal, president of the Cochin Chamber of Commerce and Industry.
“We had expected sound allocation for environmental protection, waste management, water conservation, and measures against pollution, which has not been provisioned for,” Mr. Venugopal said.
Ease of living
The Budget sets a clear action plan for making India a $5-trillion economy over the next few years with focus on ease of living,” said George Muthoot, chairman of FICCI State Council. “There are several positives in the Budget, and it provides a set of benefits for most segments of society. The Budget maintained its focus on infrastructure development,” he added.
While the government will continue with its major national programmes like Bharatmala, Sagarmala, Udan, and inland waterways scheme, the vision of taking connectivity to the next level through ‘One Nation One Grid’ for electricity and a similar plan for gas grids, water grids, i-ways, and regional airports is ambitious and will be transformational in its impact. The Finance Minister’s focus on promoting public-private partnership to modernise and upgrade the railway infrastructure too is welcome, Mr. Muthoot said.
The decision to set up 10,000 farmer-producer organisations and fully leverage the benefits of e-NAM for getting fair and remunerative prices is welcome. “On the taxation front, we are happy with the decision to raise the turnover limit from ₹250 crore to ₹400 crore for companies that attract a corporate tax rate of 25%. We had hoped that this rate would be applicable to all firms,” Mr. Muthoot said.
The Budget signals a significant boost for infrastructure and foreign investments, particularly at a time when the economy is showing signals of a slowdown, said Bose Nair, vice president, World Trade Center (WTC) - Kochi, Bengaluru, and Chennai.
It is also encouraging to note that the government plans to organise a global investors’ meet and invite global companies to set up mega-manufacturing sites. The thrust given to housing, start-ups, green infrastructure, education, and women’s welfare is welcome. The special mention of start-ups by extending the Stand Up India scheme as well as lesser tax scrutiny will help several aspiring start-ups, particularly from Kerala, Mr. Nair said.
