<b>Ravi Uppal:</b> Core sector concern ignored

The MD & Group CEO, Jindal Steel & Power said, sadly, corp tax rates for large cos were not reduced

One thing for which the government deserves full credit is consistency in the policies it initiated two years ago. The Budgetary proposals reaffirm the government’s unflinching commitment to what others have set out to do. The Budget once again has a strong focus on infrastructure, housing, employment generation, digitisation and increasing consumption levels of the economically weaker sections. The proposals are also focused on improving the economic lot of the rural poor, women and senior citizens. 

While a hefty increase in infrastructure and defence spending will spur demand for goods from core sector industries like steel, cement and construction, the government did not mention anything on royalties and freight costs to improve the competitiveness of domestic companies. Private sector investment in the core sector remains low and has declined over the past five years.

With huge amounts blocked in non-performing assets in power, steel, mining and cement industry, the private investment would remain tepid until the government intervenes actively to make these assets productive. Sadly, the corporate tax rates for large companies were not reduced. Although tax concessions for MSMEs is a positive move, it is the large companies that invest in intensive core industries and their problems cannot be ignored.