Check inflation, fiscal deficit to spur growth: UP industry body to Centre

The industry body urged the UP government to emphasise on the manufacturing sector, including MSME segment

Corporates in Uttar Pradesh has urged the Narendra Modi-led government at the Centre to tackle inflation and the fiscal and current account deficits in the forthcoming Union Budget for reviving growth.

Besides, they also said the Centre needed to the manufacturing sector, including Micro Small and Medium Enterprises (MSMEs), a boost for better gross domestic product (GDP) growth of the country.

The Associated Chambers of Commerce & Industry of UP sent a pre-Budget memorandum to the Union Finance Minister Arun Jaitley for the Finance Bill 2014-2015, which is popularly known as the Budget.

S B Agarwal, secretary general, Assocham of UP, said recouping black money “stashed abroad” and controlling its flight, direct and indirect tax reforms were other issues of vital importance that should be considered in the Budget.

Continous growth of black money was adding more fuel to fire, he said in his letter, adding, “We are extremely happy that your ministry has already set up special investigation team to bring back black money, complying with the order of the apex court. Setting up SIT apart, we suggest that the government should come out with an amnesty scheme for unaccounted money of Indians lying in foreign banks.”

He added the government should consider imposing a flat tax of 30-50 per cent on such unaccounted money brought to India with provision of exemptions for money directly invested in agriculture/infrastructure projects of capital nature, while excluding land and real estate.

Agarwal said a road map be prepared for Goods and Service Tax and Direct Tax Code which states overdues and should not be delayed any further.

The Chamber has cautioned against “Dole based economy,” while urging for an action plan for the creation of warehousing, cold storage, markets/mandis, rail and road links etc.

He said corporate tax rate might be reduced from 30 per cent to 25 per cent, while education cess of 2 per cent and secondary education cess of 1 per cent be abolished.