Chambers' Reactions: Ficci: Faith in growth

Ficci: Faith in growth
“Some of the positives that we can pick up from the Budget includes abolition of fringe benefit tax (FBT) and commodity transaction tax (CTT), continued commitment to changeover to a goods and services tax (GST) regime from April 1, 2010, larger investment in the agriculture sector, particularly on developing the cold chain infrastructure, greater investments in infrastructure and social sectors and an even higher target for agriculture credit in the year 2009-10,” said Harsh Pati Singhania, president, Ficci.

“The finance minister has reposed his faith in growth. He has provided a stable tax framework with some reforms and simplification of procedures. He has not attempted an outright correction on the fiscal front, which could have set back growth at this stage,” he added.

The finance minister’s growth strategy, according to Ficci, relies on three triggers — higher investments, leaving more money in the hands of consumers and increasing agriculture production to hold the price line. Such a comprehensive approach, the industry body believes, will help India return to the 9 per cent growth trajectory soon.

Ficci has applauded the government for its decision to continue with stimulus measures. It also said that the exporting community too has got further support from the Budget in the form of extension of the interest subvention scheme, higher allocation for the market development assistance scheme and simplification of the service tax refund mechanism.