Sets long term growth agenda: Murugappa

It also addressed concerns with regard to FDI, says Murugappa Group Chief

Murugappa Group executive chairman A Vellayan said the Union Budget gave a clear indication of the government’s long-term approach for development.

“There is clarity arising from the realistic expectation that all the problems of the past cannot be dealt with in one single budget. This clearly appears to underline the directional and long term approach to economic recovery and development” said Vellayan.

The creation of the Expenditure Management Commission is an acknowledgement that there has been wasteful expenditure and this needs to be addressed seriously. The philosophies of ‘do not spend beyond your means’ and ‘approach expenses with efficient results in mind’ are evident in this.

The Budget has also approached the agriculture sector in a holistic manner, evident from the development initiatives announced across all levels of the value chain - starting from soil health to balanced nutrition to irrigation to farmer enablement through Nabard schemes to an effective warehousing system.

The setting up of biotech parks and organic farms is also a welcome gesture in this sector. “We expect these initiatives to improve the quality of agriculture, while reducing the stress on land and labour,” said Vellayan.

The manufacturing sector will get a boost with the long-term initiative of setting up of 10 new industrial clusters.

The focus on developing ports, creating smart cities and a 15,000-km gas pipeline – all contribute to improving the infrastructure support that is vital to the manufacturing sector.

“This is further enhanced with the much-needed skilled manpower in the form of the Skill India programme and the increase in investment allowance level starting with a capex from Rs 25-crore,” said Vellayan.