Budget met industry expectations: FAPCCI

Hyderabad, July 10 (INN): Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) President Shiv Kumar Rungta welcomed the maiden budget presented by Finance Minister Arun Jaitley on Thursday.

"Prime Minister Narendra Modi's government unveiled its first budget of structural reforms that seek to revive growth, and sets the target of achieving 7-8% growth rate in next three years. The budget stressed the need to revive growth in manufacturing and infrastructure sectors to create more employment opportunities.

While accepting fiscal deficit target of 4.1% of GDP, it is proposed to increase Tax-to-GDP ratio instead of cutting the expenditure. He spoke about Expenditure Management Commission. He also spoke about over hauling the subsidy regime," he said.

Rungta appreciated that the government is addressing various issues relating to the social sectors such as rural and urban housing, welfare of senior citizens, protection of Girl Child, women welfare, sanitation and those with disabilities. He welcomed the announcement of 10 years tax holiday for power generators, which will give an impetus to power generation in the country.

Another important measure that encourages investors is the move to create entrepreneurship friendly and stable environment. The Finance Minister stated that the Government of India is committed to meet all the obligation regarding the implementation of AP Re-Organization Act 2014 and various Ministries have been provided the necessary budget for the same, he said.

The announcement of the facility of e-Visa would give a major boost to tourism in India. The countries to which e-Visa facility would be extended would be identified in a phased manner. This would further facilitate the Visa-on-Arrival facility at selected Airports. Setting up of AIIMS and IIT in Andhra Pradesh fulfills the desire of people of Andhra Pradesh to have world class education centers.

"The announcement of the launch of a national Multi-Skill programme called Skill India to make the youth get skills with an emphasis on employability and entrepreneur skills is a welcome step.

It addresses the need to provide training and support for traditional professions like welders, carpenters, cobblers, masons, blacksmiths and weavers etc. he also mentioned about amendment in the Apprentice Act," he said.

He said it is highly encouraging that Government has taken initiative to create a conducive eco system for the venture capital in the MSME by proposing to establish a Rs. 10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity, quasi equity, soft loans and other risk capital for start-up companies.

It is a welcome measure that the government was committed to provide a stable and predictable taxation regime that would be investor friendly and it spur growth.

The constitution of high level committee to be headed by CBDT will help creating confidence among the foreign investors. He welcomed the induction of FDI in Defence manufacturing, Insurance and infrastructure including housing.

He welcomed the formation of a committee to interact with Trade and Industry on a regular basis and ascertain areas where clarity in tax laws is required, basing on which the Central Board of Direct Taxes and the Central Board of Excise and Customs shall issue appropriate clarification and the tax issues within a period of two months.

It is also a welcome measure that the income tax department expected to function not only an enforcement agency but also as a facilitator. All in all the much awaited maiden budget of BJP Government substantially meets the expectations of Trade and Industry bodies and we are sure that the economy will be put into the growth track within next two to three years with calibrated policy measures, he said.