New Delhi: Apex industry body ASSOCHAM today congratulated Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley for giving a truly workman and business-like Budget, with a great focus on rural economy, small and medium enterprises, small income tax payers and importantly bringing reforms in political funding.
“Post demonetisation, rural landscape had come under stress along with the SMEs and the informal sectors of the economy and needed a boost. Credit commitments of Rs 10 lakh crore for farm sector along with several initiatives for helping agri-produce to get better prices are the initiatives which would be a growth driver for the agricultural sector besides favourable weather conditions and good Monsoon in 2016,” said ASSOCHAM President Sunil Kanoria.
“Model law on contract farming and involvement of states in easing of the APMC would be a game changer for the agriculture sector,” he added.
Kanoria also said, “Though the Budget has used a little elbow room, pegging the fiscal deficit at 3.2 per cent for 2017-18, it has rightly chosen to traverse the path of fiscal consolidation by limiting the market borrowing. It would certainly help keep inflation in control. The macro credibility of the Indian economy has been kept intact.”
“Abolition of the Foreign Investment Promotion Board is a great signal to the foreign investors about furthering of reforms and ease of doing business in India. A boost to the digital economy by way of stepping in telecom infrastructure would bring in more transactions in the formal sector,” said the ASSOCHAM chief.
However, he said while the reduction of corporate tax for the small and medium enterprises with turnover less than Rs 50 crore, is a welcome move, the India Inc was expecting it for large firms as well. “At least the glide path towards lower corporate tax is clear; so is the case with the personal income tax, even though the relief is limited to those earning up to Rs 5 lakh.”
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