Tuesday, 31 May 2016

City biz-men say Union budget gave them little reason to rejoice

City businessmen feel there's  not much that this union budget has to offer for industries . besides the employee provident fund scheme and the excise and customs duty relaxation, industries don't get any significant benefits.

The textile industry , which is the significant contributor to the country's gross domestic product , and accounts for over 35% of the country's textile exports , feels that no big announcements impacting the industry were made in the budget. "The focus was on agriculture and the rural sector, So, the budget did not have many announcements for the textile sector," said vice-chairman of Indian Technical Textiles Association , S K Sundaraman.

Industrialist say that the 2 % relaxation of excise and 2.5% in customs will bring some relief for them. " We had hoped for some relief in the export segment. Exports from Tiruppur and Coimbatore are significant , and any policy easing export of goods or relaxing norms would benefit the textile industry," said a textile entrepreneur requesting anonymity. " the Rs. 1,840 crore allocation for the textile industry is insufficient as there are backlogs for more than nine months. It will be difficult to hope for any development with the funds allocated, " said the industrialist.

Automobile and manufacturing and pump industries too are in a fix. "several automobile parts are exported from the city. While the announcements to improve the road and rail infrastructure will speed up the transport of good from the city to the ports, decisions at the policy level would have 
brought relief to industrialists." president of Indian chamber of commerce , D Nandakumar told TOI.

Chartered accountant, G Karthikeyan ,  who moderated a panel discussion organized by the Confederation of Indian Industries on Tuesday , said that while the allocations for the industries was good, " is important to see how the government implements the schemes and how well it monitors the process." He also said that the cesses levied by the government in various forms increases the compliance cost. " Industries feel that if there is uniformity in levying cess , it will provide some relief to them," he said.

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