UP Inc welcomes Union Budget 2017

Industrialists laud focus on agriculture, MSME sectors and its objective to maintain fiscal prudence

Uttar Pradesh Inc has welcomed the Union Budget 2017 for its purported focus on the agricultural and Micro, Small and Medium (MSME) sectors and its objective to maintain fiscal prudence.

The general opinion among the industrialists and industry chambers was the Budget had primarily focused on the farm sector, rural population, youth, poor and underprivileged health care, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration.

Confederation of Indian Industry (CII) UP State Council chairman and Tasty Dairy Specialties Limited managing director Atul Mehra said the Budget had accorded highest priority to rural and agricultural sectors due to its large employment potential.

"The Budget would certainly boost the Indian economy as all the key sectors have been considered and provided for therein," he said.

"Reduction of corporate tax for MSMEs with turnover of less than Rs 50 crore is a major relief for more than 96 per cent of the assesses," senior CII office bearer and CP Milk & Food Product Ltd director Jai Agarwal underlined.

Meanwhile, MSME chamber Indian Industries Association (IIA) national president Manish Goel welcomes Income Tax (IT) reduction for companies with annual turnover of Rs 50 crore to 25 per cent.

However, he claimed more support was needed for the MSMEs, which constituted the second largest sector of the Indian economy.

He lamented the Budget did not contain any financial outlay for the promotion and development of MSMEs similar to agriculture. "IIA has been demanding lower interest rates for MSMEs on lines with agriculture. The flow of credit to MSMEs is a serious impediment, which is yet to be addressed."

IIA former president Sanjay Kaul said allocation for agriculture credit of Rs 10,00,000 crore and the target to double farmers' income in five years would push the demand for MSME products & services and thus benefit the sector indirectly. Similarly, the budgetary allocation for rural areas would also boost consumption.

Industrialist Anil Gupta lauded the Centre for reduction in presumptive income for small and medium tax payers from 8 per cent to 6 per cent. "This would provide a considerable relief to small businessmen."