Bangalore Chamber of Industry and Commerce (BCIC) gave an average of seven on 10 for the maiden Budget of the Narendra Modi government, saying it did not overtly hurt or appease any individual section while being pro-growth and pro-investment.
Calling it balanced and having a macro view of most of the sectors, the chamber said it, however, disappointed by not spelling out how the high inflation and the fiscal deficit would be tackled.
Chamber president A.N. Chandramouli said, “The hallmark of the Finance Minister’s presentation was a promise of containing the fiscal deficit” at 3 per cent by 2016–17.
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The higher foreign direct investment in defence, policy-oriented announcements and targets for infrastructure, public sector, farm and manufacturing sectors; finance and capital market reforms; investment in science, technology and education, he said, “will spur all- round economic growth and set the right tone for the next five years.”
On the flip side, Mr. Chandramouli said the Finance Minister did not spell out a clear roadmap for containing the high inflation or measures to prune fiscal deficit. “There seems to be a very ambitious plan which does not enlist the priorities of the Modi government.”
The thrust on developing infrastructure, industrial corridors and new airports in small cities should boost new industries and add new jobs.
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The budget promised a stable and investor-friendly tax regime and measures to address industry’s issues related to tax law, settlement and advance ruling issues. However, according to K.R. Sekar, chairman of the BCIC’s Direct Taxes Expert Committee, clarity was missing on the operation of retrospective legislation on the lines of the Shome Committee.
Senior vice-president Anuj Sharma said resolving the mining impasse and making coal available to power plants would spur the manufacturing industry. Vice-president Thyagu Valliappa welcomed the plan for a textile cluster in Mysore.