Budget disappoints Indian industry

NEW DELHI, Feb 16 (PTI): Indian industry today criticised the interim Budget as lackluster and directionless in terms of financing infrastructure projects, while expressing disappointment at not being offered any tax concessions.

Apex associations of industry, however, welcomed Finance Minister Pranab Mukherjee’s growth directions hoping that the new government would carry forward the momentum.

Feeling let down that there was no tax relief for the industry, including removal of surcharge on corporate tax, Assocham President Sajjan Jindal said the directions on infrastructure refinancing, a focus area, were not clearly laid out.

“Assocham was expecting a third and last stimulus package in the interim budget, which, however, did not happen as it seems Mukherjee restrained himself from presenting it and rather chose the new government to unveil the package on the lines anticipated by industry,” Jindal said.

Expressing similar sentiments, newly elected Ficci President Harsh Pati Sighania said the interim Budget “gives a clear message on what steps need to be taken in the months following the general elections”.

“While there have been no specific measures other than those related to extension of interest subvention scheme for exports for another six months and recapitalisation of select PSU banks over time, yet the interim budget is welcome as it has provided the contours of the strategy that the new government will have to implement for steering India through 2009 and beyond,” Sighania said.

PHD Chamber President Satish Bagrodia said the industry was expecting targeted sector specific tax incentives to kick- start segments such as housing, steel, consumer durables, cement and passenger cars, which have high output and employment intensities.

“The fiscal deficit is also too high and may result in credit squeeze for trade and industry,” Bagrodia added.

CII president designate Venu Srinivasan said Mukherjee has stuck to the rule book but “the (new) government has to take a long-term stimulus even taking a pain”.

“It was completely (a) non-event. It was (more a) political statement than (an) interim budget. There was nothing for any sector, forget about real estate,” Parsvnath Developers Chairman Pradeep Jain said.