Union Budget 2017 draws mixed response from industrialists, farmers

Kolkata: The Union Budget presented by finance minister Arun Jaitley on Wednesday evoked mixed response from the industrialists and the chambers of commerce in the city.

The push to agriculture, rural sector, MSME and infrastructural development was lauded while some industrialists believed that the budget failed to address demands for withdrawal of import duty and clean power cess on coking coal, steel sector. “The devil is in the details which we have to see for the steel sector. Focus on infrastructure is a big positive for steel companies and the industry because it is a key driver of steel consumption,” Tata Steel India and SEA MD T V Narendran said.

However, he opined that the focus on rural sector is also important as many of the principal industries, like two-wheelers and tractors, are very dependent on the rural economy and MSMEs.

Mr Sanjiv Goenka, chairman, RP-Sanjiv Goenka Group said that the budget represents a transformative shift in the way India thinks economics and  has moved from discretion-based to policy-based, from a cash-based system to a cash-less system.

“Infrastructure, investment and reduction of red-tapism are bold measures that will propel India to a modern, quick-reaction world. The fiscal deficit at 3.2%, reduction of Income Tax rate for MSMEs, carry forward of MAT benefit for 15 years, the changing of base year of capital gains tax from 1981 to 2001 are some of the many laudable steps in the Budget,” he added.

Chandrasekhar Ghosh, chairman and MD of Bandhan Bank said that the budget will be a boost to the pro rural econmony with a focus on agriculture, MSME and road transport sector. “However, the budget did not show any proper direction on how to boost big industry ,” he said.

According to a statement by ICC, the budget will go a long way in promoting good governance and restoring growth through effective policy-based administration. However, the statement mentioned  that it did not have anything about Corporate Tax Rate cut , or the much-needed funding for weak state-run banks.

Bengal Chamber stated that the budget is an expected exercise in moderation.” The Budget, which aims to enable the funds to be deployed for a full financial year has quite expectedly allocated record spends for the Rural Sector, including MGNREGA, PMGSY, 100% rural electrification, Pradhan Mantri Awaas Yojana etc. and also raised capital expenditure by 25.4 per cent,” it mentioned.