A majority of the 30-odd industrialists from Kerala who participated in the Budget viewing session organised by the Confederation of Indian Industries (CII) expressed their disappointment over the main proposals of the budget.
CII (Kerala) vice chairman CJ George said, "Given the seriousness of the economic context in which the Budget is presented, the finance minister did not have sufficient measures for revitalising the economy and its growth." Though he tinkered with the economy here and there the proposals like the taxing of the super rich and the tax on corporate houses, etc will have a relatively dampening effect.
He said the proposal to make mutual fund agents members of the stock exchange was a surprise element. The commodity exchanges and the commodity market could take a beating due to the commodity transaction tax (CTT).
Shyam Srinivasan, managing director and CEO of Federal Bank described the proposal to start a women's bank as a 'headline item'. He, however, said that the interest subvention on agricultural loans that was extended to cover private sector banks would help increase agricultural finance in a state like Kerala where private sector banks are strong.
Shivdas B Menon of Sterling Farms said the proposal to increase allocation for the coconut replantation scheme will help Kerala. Coir industry will also benefit due to the incentives given to handmade coir carpets.
Sanjay Vijayakumar, managing director MobMe said incubation centres will benefit due to the proposal to allow companies donate to such centres as part of their CSR activities.
