The Hindu Business Line : Chambers gung-ho

DUTY cuts announced by the Government on Thursday have ensured that the India Inc would have an extended New Year celebration. The Confederation of Indian Industry (CII), President, Mr Anand Mahindra, applauding the announcements felt that the new measures would further enhance the competitiveness of the Indian economy as well as propel India into a higher growth orbit.

"These measures clearly reflect the strong political will of the Vajpayee Government to drive reforms strongly," he said adding, "We are delighted that the Government has taken these measures. It shows the Government's commitment to reform. It also belies expectations that reforms would be put in the backburner.'' The reduction in peak customs duty to 20 per cent and the elimination of the 4 per cent SAD will drive the economy towards greater competitiveness, efficiency and globalisation, he said.

The FICCI President, Mr Y.K. Modi, said that reduction in excise duty on aviation turbine fuel and abolition of 15 per cent inland travel tax would give boost to air travel. The reduction in excise duty and customs duty on computers, coal, cellphones, etc. will add to the feel good factor prevailing in the country. The reduction would also help making the Indian economy globally competitive. The reduction in non-farm goods would have been done with simultaneous deepening of reforms in the area of labour and power sector.

Reacting to the duty reductions on several items, Assocham appreciated the custom duty reduction selectively on some imported goods, especially of raw materials, which will be used by the manufacturing sector to produce finished goods both for the domestic consumption and exports. It would help in greater competitiveness.

Welcoming the reduction in customs and excise duty announced, today, Mr Ravi Wig, President, PHDCCI said that the reduction in custom duty on non-agricultural goods by 5 per cent to 25 per cent and abolition of 4 per cent specially additional custom duty and cut in custom duty on IT and electronic products is a step in a right direction. The President, Indo-American Chamber of Commerce and Industry, Mr V. Rangaraj, said that these measures would help in giving a critical push to the economy, particularly the manufacturing sector, which has been showing buoyancy in the recent months.

In a statement, Mr M. Rafeeque Ahmed, President of Federation of Indian Export Organisations (FIEO), said, "The proactive way in which Government is trying to facilitate the accelerated development of commerce and industry is most welcome."

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