Mixed reaction from industry over the budget

Chennai:

There was mixed reactions to the budget from the industry with a section stating that it is positive, realistic and focused while some felt that it did not raise to the expectations of trade of industry.

Confederation of Indian Industry said that the budget was a positive one focused on growth. Addressing the media persons at a `Budget Viewing Session’ organised by CII, T T Ashok, Chairman, CII Southern Region said that the budget presented by Finance Minister Pranab Mukherjee was well on the expected lines, positive, realistic and focused on domestic demand driven growth.

Ashok said more can be expected from the direct tax code and GST and from the whole pile of schemes for the capital market.  About the hike in excise duty, he said, ``we would have been happy with the existing rates’’.

Venu Srinivasan, Chairman and Managing Director, TVS Motor Company Ltd, said there was no clear direction on the second level of reforms in the manufacturing sector which alone could create employment.  “We wish there has been greater push on the manufacturing sector’’, he said. 

Preetha Reddy,  managing director of Apollo Hospitals Enterprises said the        Rs 5000 tax exemption for preventive health check-up and the focus on good drinking water were very positive steps with long-term benefits. The focus on skill development would benefit the healthcare industry as it was the major employer of skilled people, she said. However, she felt there was nothing concrete on boosting medical tourism.

K Raghavendra Rao, Chairman and Managing Director, Orchid Chemicals and Pharmaceuticals, said the incentive for research and development should have been extended to all areas of research and development. He welcomed the focus on biotechnology in clinical research.

N K Ranganth, managing director, Grundfos Pumps India welcomed the focus on agriculture and infrastructure and felt enough was not done for the manufacturing sector. S Chandramohan,  Chief Financial Officer  Tractors and Farm Equipment said the proposed State-run irrigation companies would be helpful. Chandramohan said the crop loan facility could have been extended to the agriculture capital goods also.

Narayan Sethuramon, managing director, WS Industries (India) welcomed the thrust of the Budget on the power sector. But he said there was no mention about the import of power equipment and also about exports.

K K  Raman, Executive Vice-President and Zonal Head, DLF India Ltd, and    Preetham Mehra, Head - Operations, CB Richard Ellis, said the higher allocations for HUDCO and National Housing Bank and the clear indication of affordable housing at Rs 25 lakh were positive steps for the real estate sector.

GRK Reddy, chairman and managing director, MARG Group said concrete measures for  the growth of infrastructure in India have been taken as part of budget 2012-13 by creating adequate funding mechanisms. He said the doubling of tax-free bonds to Rs 60,000 crores is a welcome move in creating access to funds for infrastructure projects.

He also said the delay in implementation of the Direct Tax Code (DTC) and the continuing lack of clarity with respect to SEZs is a big disappointment.

Meanwhile, Tamil Chamber of Commerce has said the budget did not complete the expectation of trade and industry. It also expressed disappointment that there was no announcement of any scheme or special packages for Tamil Nadu in the budget. It also noted that that the rise of imnport duty on gold will further escalate the gold price which is already in peak.

D S Balachandra Babu of Andhra Chamber of Commerce hailed the budget and said working capital requirement of farmer has been addressed well.