Tax incentives for Micro Small and Medium Enterprises (MSMEs), the mainstay of industry in the region, the thrust on highways development, and infusion of capital for expansion of the railway network are some of the steps in the Union Budget for 2017-18 that raise realistic hope for Puducherry, Srikanth Sivaraman, chairman, CII-Puducherry, said on Wednesday.
“It is by and large a pro-development budget which leaves little room for complaint for any quarter,” Mr. Sivaraman told The Hindu .
One of the big takeaways from the budget was the announcement to make MSME companies more viable by slashing income tax for companies with annual turnover of up to Rs. 50 crore to 25%.
According to Mr. Sivaraman, this measure could be a big boost to industry in Puducherry where a majority of the units are in the MSME sector.
On the railway development front, the budget proposed to commission 3,500 km of railway lines in 2017-18 and to take up at least redevelopment of 25 stations apart from upgrading 500 stations as differently-abled friendly by providing lifts and escalators.
There had been a growing perception that the railway development in the region had not been proportionate to the rise of Puducherry as a tourist destination and the surging demand for connectivity.
“Puducherry can expect to gain from some of the benefits of the proposed railway infrastructure upgrade,” Mr. Sivaraman said.
The allocation of resources for highways development is another measure that could be significant for Puducherry vis-a-vis faster connectivity to Bengaluru as well as to southern region through the East Coast Road, the CII chairman said.
In view of the incentives for start-ups, the CII would join the Government in motivating more youth to turn entrepreneurs. “Puducherry is lagging in start-ups and a conducive eco-system could help reverse the situation,” Mr. Sivaraman said.
Already, CII was partnering with the Government on an ambitious skill mission that targets training of about 30,000 youth, he added.
BJP welcomes budget
The local unit of the Bharatiya Janata Party had termed the budget presented by Arun Jaitley on Wednesday as one which caters to the needs of the poor, farmers, salaried, and business classes.
BJP local unit president V. Saminathan said the Centre had substantially increased allocation for the farm sector and announced measures for the welfare of farmers.
By lowering the tax rate from 10 % to 5 % in the ₹2. 5 lakh to ₹5 lakh tax slab had given solace to the middle class.
The party welcomed the government decision to reduce corporate tax by 5% to Micro Small and Medium Enterprises. This would help small enterprises and in job creation. The government has announced in the budget to make 50,000 grama panchayats poverty free by 2019, he said.
