Union Budget 2015 evokes mixed reactions from UP Inc

The Union Budget 2015 has evoked mixed reactions from Uttar Pradesh Inc. While some termed the Budget growth oriented, reformist and pragmatic, some felt it failed to address certain issues, especially those pertaining to micro, small and medium enterprises (MSMEs).

Confederation of Indian Industry Uttar Pradesh State Council Chairman Sameer Gupta said Finance Minister Arun Jaitley’s commitment on the rollout of the Goods and Services Tax (GST) by April 1, 2016, was commendable. CII has long been advocating the early rollout of the new tax regime.

CII believes GST would add 1-1.5 per cent to India’s gross domestic product. Besides, he said the education cess getting subsumed in central excise duty was a positive indication and a step towards GST.

Lucknow-based PTC Industries Managing Director Sachin Agarwal said the Budget was positive for MSMEs as it had proposed setting up of the Micro Units Development Refinance Agency (Mudra) with a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3,000 crore. These would encourage MSMEs to grow to the next level, he said.

Tata Consultancy Services Regional Head Jayant Krishna expressed happiness over the slew of skill development and employment related measures in the Budget. The focus of the central government on creating entrepreneurship for the Indian youth in the farm sector and technology start-ups is welcome, he said.

The Indian Industries Association (IIA) said the Budget had failed to provide succour to the MSME sector, though it accounted for over 40 per cent of domestic exports and 45 per cent of the industrial output. IIA Lucknow Chapter Chairman Manmohan Agarwal said overall the Budget seemed to be an effort towards consolidation of the economy as had been done in the Railways Budget.

“Implementation of the GST from April 2016 would boost both industries and economy. The states might not implement the GST in one go as had been the case while implementing value-added tax but subsequently the states would fall in line,” he said.