The Hindu Business Line : ‘Nothing for SSIs’

The small holdings need
consolidation without disturbing ownership and a cluster approach is required for introduction of scientific and modern farming.

Our Correspondent

Madurai, March 2 The trade and industry is disappointed with Union Budget for 2008-09.

The Tamil Nadu Chamber of Commerce and Industry, while expressing a shock over the recommendation in the Economic Survey to allow a share for foreign equity in all retail trade, in a statement here said that the Budget had ‘fewer welcoming features’ and the Finance Minister has slipped ‘a good opportunity to present another dream Budget’.

The Chamber has pointed out that there have been no innovative or farsighted proposals to encourage the small and medium sector in the country. Though a preferential treatment has been given to agriculture, it is highly sceptical whether the scheme would bring forth the targeted 4 per cent growth. The small holdings need consolidation without disturbing ownership and a cluster approach is required for introduction of scientific and modern farming. Despite the linkage of major rivers in the country being a felt necessity, non-allotment of funds for proactive schemes by the State Governments is disappointing. Along with the waiver of loans for farmers, the Budget should have announced some relief for those farmers who promptly repay the loans, it has said.

Another disappointment has been the absence of rationalisation and simplification of taxation that continue to torment the small and medium traders and industrialists, allowing no time to attend to business and production activities. Further, no scheme has been announced to motivate the small scale industries that provide employment, next only to agriculture, the Chamber has observed.

The Madurai District Tiny And Small Scale Industries Association while welcoming the reduction in CENVAT in the Union Budget from 16 per cent to 14 per cent and creation of exclusive funds for risk capital management, has expressed its disappointment that in the context of rupee appreciation against dollar, the expectation of small exporters for some fiscal support has not come forth.

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