From Our Special Correspondent
GUWAHATI: Industry chambers in the North East have welcomed the Union Budget 2020-21, terming it “pragmatic and balanced in difficult times” and one that is expected to rejuvenate the economy, generate employment and attract investments.
In a statement issued here, the Federation of Industry and Commerce of North Eastern Region (FINER) analysed the budget proposals as those based on long-term goals where emphasis is given to agriculture, irrigation and rural development, water and sanitation besides education and skill.
“Focus is also on infrastructure, connectivity and tax reforms, which will not only boost the GDP growth but also improve the slowing Indian economy,” it said.
FINER had, like in the previous years, organised a live viewing of the Union Budget presentation speech of Union Finance Minister Nirmala Sitharaman at a city hotel here on Saturday where leading economist, MP Bezbarua, and prominent industrialists were present.
“Structural reforms in governance in GST, 20 per cent reduction in turnaround time for trucks, benefits to micro small and medium enterprises (MSMEs) through enhanced threshold and composite limits, saving of about 4 per cent of monthly spending of average household, are very laudable. Addition of 60 lakh new tax payers indicates widening of tax net, which is a welcome sign,” the statement issued by the industry chamber said.
With this budget, the government has intended to step into new era of digital revolution.
“The budget’s primary focus on rural economy is an important issue that government took up in right earnest. The finance minister reiterated to double the farmers income by 2022. Comprehensive measures of 100 water-stressed districts have been proposed. Major reforms through PM KUSUM, Krishi UDAN and Kisan RAIL schemes are steps in the right direction which will benefit the North East region as well,” it added.
FICCI North East Advisory Council chairman, Ranjit Barthakur, termed the Union Budget pragmatic and balanced budget in “rather difficult times”.
“The budget has made an allocation of Rs 2.83-lakh crore for agriculture and allied sectors, and also announced credit availability of Rs 15-lakh crore for the rural and agriculture sectors. These measures will help in reviving demand in the rural economy. We hope part of the agriculture budget allocation will also be used for the tea and animal husbandry sectors,” Barthakur said.
He also felt that the proposed spending of Rs 1.7-lakh crore on transport infrastructure will boost employment and also give an immediate boost to sectors like steel, cement, etc.
“By relaxing the fiscal deficit target to 3.8 per cent for the current year and 3.5 per cent in the next year, the gvernment has given a clear indication of its intent to boost consumption, he added.
Barthakur further welcomed the move to develop inland waterways in Brahmaputra.
“This has been a long-standing suggestion by FICCI North East advisory council and we feel that this can go a long way in boosting the region’s economy by giving a boost to connectivity,” he added.
Meanwhile, the withdrawal of 2 per cent TDS (tax deducted at source) on withdrawal of cash of more than Rs one crore, although a major concern for the tea industry, continues and there is no relief in the Budget.
In a statement, PK Bhattacharjee, secretary-general, Tea Association of India, said that the farm credit limit at Rs 15-lakh crore is likely to benefit the tea industry.
“Further, tea exporters should be benefitted through the proposed rebate on digital refund of duties paid on states, including fuel and electricity, which is, at present, not refundable under GST,” Bhattacharjee said.
The prospect of districts where tea is the predominant agriculture activity (in West Bengal and nearly a dozen in Assam) being developed as export hubs could provide a spurt in economic activities.
The change in incentive schemes for chemical fertilisers, as is being proposed in the Budget, may however adversely impact the tea industry.