Budget 2016: An attempt for consolidation of Indian economy, says industry in UP

However, industrialists felt that the Centre could have announced some sops for the MSMEs

Uttar Pradesh (UP) Inc has broadly cheered Union Budget 2016-17 tabled by Union Finance Minister Arun Jaitley in Parliament by terming it an attempt for the consolidation of Indian economy.

Industry maintained that it was not a populist budget and the major focus of the finance minister had been on the rationalisation of tax structure, fiscal prudence and containing fiscal deficit, which augurs well for the economy in long term.

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However, industrialists felt the Centre could have announced some sops for the Micro, Small and Medium Enterprises (MSMEs), which are over three million in UP and account for maximum employment generation after agriculture.

 

Confederation of Indian Industry (CII) Deputy Chairman, on regional committee of MSMEs and competitiveness also PTC Industries Managing Director Sachin Agarwal said that the announcements were positive for the small industries. "Increase in the turnover limit under presumptive taxation scheme up to Rs 2 crore would provide a big relief to the sector and ultimately boost growth and employment."

CII UP State Council Chairman and Jakson Group CMD Sameer Gupta said that the Budget provided renewed thrust on social sector spanning health and medical.

Indian Industries Association (IIA) President Manish Goel said that enhanced outlay of Rs 2,21,246 crore for infrastructure, Rs 87,765 crore for rural sector and Rs 35,984 crore for agriculture would indirectly increase demand for goods produced by the sector.

"The biggest positive aspect of the Budget is an effort to control fiscal deficit? This year's Budget is a bitter pill for the growth of Indian economy," he observed.

However, he expressed disappointment at Jaitley failing to mention the proposed GST even once in his budget speech.

IIA former President Sanjay Kaul said that the Budget aimed rationalisation of taxation system and the assessment processes.

Meanwhile, Indian Bullion and Jewellers Association (IBJA) Board member Tanya Rastogi rued the proposal to levy one percent excise on jewellery without input credit or 12.5 per cent excise with input credit.

"Levy of excise on jewellery will create more troubles for our beleaguered industry. There are about 10 million artisans working in this industry," she said adding IBJA would demand the rollback of the proposed excise duty.

Realtor Radhey Krishna Group Managing Director Naveen Goel said that the Budget would boost the existing sluggish pace of the real estate sector. He welcomed the proposal of additional Rs 50,000 deduction on interest on loans for first-time home buyers on housing units of less than Rs 50 lakh.

Laghu Udyog Bharti UP General Secretary Ravindra Singh said that the Centre for its budgetary proposals to help new industries, but said it does not provide succour to the existing units. He welcomed the announcements in the road infrastructure sector, which he said would ease transportation of goods and help nurture industries.