Union budget balanced & growth oriented: CII-Orissa

The Orissa State Council of Confederation of Indian Industry (CII) has hailed the Union Budget for 2011-12 as growth oriented, forward looking and balanced with its focus on education, employability and women empowerment.

Commenting on the Union Budget, R K Jena, chairman of CII-Orissa said, “Agriculture has been given adequate importance and loans at concessional interest rate of four per cent has been announced for farmers who pay their dues in time and the credit target for farm sector has been increased. The housing and infrastructure sectors have also been given importance and these will have a positive impact on the economy as a whole”.

There has been a commendable effort to bring in fiscal discipline and the deficit, seen at 5.1 per cent of GDP (Gross Domestic Product) in 2010-11, is expected to be brought down to 4.6 per cent in 2011-12 and 3.5 percent in 2013-14.

Efforts are on to implement Direct Tax Code as well as GST and introduce the Companies Bill in the current session of the parliament, the industry body noted.

It pointed out that the proposal to introduce self assessment of custom duty wherein importers and exporters will themselves assess the payment of duty is a progressive step.

On hike in export duty on iron ore, Jena said, “The introduction of 20 per cent ad valorem export duty on iron ore and withdrawal of export duty on iron ore pellets is in line with the expectation from several industries and will promote value addition inside the country and conservation of natural resources.”

He also welcomed the decision to allow foreign investors to invest on Indian mutual fund schemes, stating that it is a significant decision which will enhance foreign investment in the country and enable to maintain high growth rate.