The Hindu Business Line : Thrust on farm, rural growth hailed

Mr N. Krishna Samaraj, Chairman, CII (Southern Region), Coimbatore, said the Budget would "drive demand and encourage investment," which would benefit the corporate sector. He said many of the recommendations of the CII have been accepted.

Mr A. Sakthivel, President, Indian Chamber of Commerce and Industry (ICCI), Coimbatore, welcomed the Budget proposa for introduction of VAT from next year, removal of Cenvat for handloom and powerloom sectors etc. He felt that the Finance Minister should have considered exemption limit of Rs 5 lakh for levying service tax.

Mr G. Rajendran, President, Southern India Engineering Manufacturers' Association (SIEMA), while welcoming the announcements such as doubling agricultural credit in the next three years, raising of capital subsidy to 15 per cent and credit of Rs 1 crore to the SSI sector, regretted that the Minister did not announce any change in excise duty on pumpsets. The de-reservation of 85 items from the SSI list was also disappointing, he said.

Mr Tee. Narayanaswami, President, Coimbatore District Small Industries Association (Codissia), felt that the development of an International Container Trans-shipment terminal at Vallarpadam near Kochi would accelerate the growth of export-oriented industries in this region.

Mr S. Amarjit Singh Chandhoke, former President, Federation of All India Automobile Spare Parts Dealers' Association, said the automobile industry would benefit from the thrust given to agriculture and rural development. But he feared the widening of the service tax net and the tax rate increase to 10 per cent would hit the profitability of the industries.

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