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Modi govt's debut Budget gets thumbs up from UP Inc

Lauds various budgetary proposals aimed at spurring growth, boosting manufacturing and agriculture

Virendra Singh Rawat  |  Lucknow 

Budget image via Shutterstock.

The maiden Union Budget 2014-15 presented by the Narendra Modi government in Parliament has been welcomed as growth oriented by Uttar Pradesh Inc.

The felt that various Budgetary proposals were aimed at spurring growth, boosting manufacturing and agriculture and taming fiscal deficit and inflation through medium term measures.

Micro, Small & Medium Enterprises (MSME) chamber Indian Industries Association (IIA) President Pramod Miglani noted that Modi government had made a good beginning with the Budget in a short period of time.

He claimed that various IIA proposals had been incorporated in the Budget, including review of the definition of MSME for higher capital ceiling, easy exit in event of bankruptcy, enhancement of incubation facilities, easy access to finance etc. He expected such announcements would be implemented in a time bound manner.

IIA senior Vice President Manish Goel appreciated the initiative for developing Smart Cities and the announcement for transforming employment exchanges as career centres.

However, he expressed disappointment over no timeline set for the Goods and Service Tax (GST) regime.

Meanwhile, Confederation of Indian (CII) UP State Council Head Sachin Agarwal cheered the raising of Foreign Direct Investment (FDI) cap in defence saying it would boost manufacturing, benefit MSMEs and create more employment.

He opined that the Budget could have more clarity on GST, company laws and labour reforms.

Associated Chambers of Commerce & of UP said the Budget had attempted to balance expectations with the need of achieving 4 percent agriculture and double digit overall growth.

Chamber secretary general S B Agarwal said the Budget had paid attention to rural, urban, ultra-urban, agriculture, industry and trade segments.

He hailed the raising of ceiling on individual Income Tax, home loan interest subsidy, eligibility of saving in PPF etc. The reduction in indirect taxes would result in reduction in the prices of a number of consumables.

Merchants’ Chamber of UP said it was common man’s Budget and welcome increase of FDI limit in insurance and defence sector, equity of 2,40,000 crore to be raised for banks by 2018, reintroduction of Kisan Vikas Patra to boost small savings etc.

It supported 10-year tax holiday for energy sector as incentive for power generation.

HCBL Cooperative Bank CEO Pawan Kapoor greeted the Budget noting that the commitment of government through growth targets of 7-8 per cent in coming years spelt out assurance of stability and sustained growth.

He also claimed since it was a mid-term Budget, the finance minister had tried to project it as a vision document of the ruling National Democratic Alliance (NDA). “The roadmap of fiscal consolidation outlined in the lower fiscal deficit target of 3.6 per cent and 3 per cent in 2015-16 and 2016-17 respectively reflected broad policy indicator and progressive approach of the NDA government.”

First Published: Fri, July 11 2014. 20:45 IST