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Saturday, Jul 10, 2004

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Mixed reactions to budget

Our Bureau

Hyderabad , July 9

THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) termed it "unfortunate" the extension of regional concessions to Sikkim, Uttaranchal and Himachal Pradesh till 2007.

"The Finance Minister has sent a right signal to foreign investors by increasing sectoral gap for FDI in some sectors and simplifying procedures for registration," Mr O.P. Goenka, President of FAPCCI, told a press conference.

The focus on rural and social sectors would ensure a more equitable and sustained growth of Indian economy.

Tax holiday for fruit and vegetable processing units would help diversify agricultural activity, according to the All India Manufacturers' Organisation (AIMO-AP). "The compulsions of coalition politics, especially partners with widely different ideologies, have left their imprint on the Budget," Mr G Jayaraman, Chairman of AIMO (AP), said.

"The thrust on agro-industries and increased emphasis on infrastructure are welcome. But it is mixed signals as far as manufacturing sector is concerned. Hike in excise duty on steel will be inflationary and will result in across-the-board increase in manufacturing costs," he said.

The Chairman of Andhra Pradesh Chapter of Confederation of Indian Industry (CII), Mr Ramesh Datla, has said the Budget was "a progressive and forward-looking with a focus on the crucial areas of agriculture, infrastructure, education and health."

According to Mr Datla: "The Budget will drive demand and encourage investment that will benefit the corporate sector as a whole."

However, he expressed his concern due to lack of mention of downsizing of existing workforce in Government and not much in the labour reforms. "Success of this Budget would depend on right implementation through proper delivery mechanism," he said.

The Vice-Chairman of CII, AP, Mr M.K. Patodia, said the Budget indicates continuity in the reform process, which is a step in the right direction, ensuring confidence in the industrial community.

More Stories on : Budget | Andhra Pradesh

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