the 10-point vision laid out by the Minister, besides mentioning
reduction in the twin deficits, emphasis was also given to a balanced
monetary policy, implementation of infrastructure projects and
development of cities. CII hopes that the new government will further
strengthen the support given to industry and extend the support to
other sectors. The implementation of GST should also be a priority
for the coming government, the CII release said.
Industry body Assocham's President Rana Kapoor while commenting on the budget said that despite being low on expectations in an election year, Finance Minister P Chidambaram's Interim Budget has given a pleasant surprise at least partly to the manufacturing sector which has been bleeding. The excise duty cut on automobiles and capital goods will provide a much-needed relief to these sectors.
However, the industry would expect a much larger package from the new government to revive the manufacturing sector when a regular budget is presented some times in July.
More importantly, the Finance Minister deserves to be complimented since he is leaving behind the government treasury in a sound shape with the result that the overall macro picture of the Indian economy today looks far better than it was about eight months back, says the Assocham Chief.
Commenting on the Vote on Account presented today by the Government, Sidharth Birla, President, FICCI said that the statement made by the Finance Minister was balanced and largely on expected lines. While industry expectations were limited from an interim budget formality, the emphasis laid on turning around the growth trajectory and reviving the manufacturing sector in particular are well received.
The maximum focus this time was on the fiscal deficit number, a figure being closely watched by all investors.
"The Finance Minister has stuck to what he had promised with fiscal deficit being kept at 4.6 per cent of GDP in fiscal 2014 and lower than the budget estimate of 4.8 per cent. The future direction being given with regard to central government finances is also good. While this was the last budget of the government, yet the Finance Minister refrained from announcing any large populist measures", added Birla.
Industry has welcomed the initiative of a ten point charter outlining the vision for future of the Indian economy. Many of the points mentioned such as need for fiscal consolidation; importance of foreign investments for financing CAD; creating a balance between price stability and growth; deepening the financial sector reforms; intensifying efforts on infrastructure development; boosting manufacturing growth with zero taxing of exports and minimum tariff protection to encourage domestic value addition; containing subsidies; having planned urbanisation and pushing skill development have been highlighted by FICCI even in its most recently launched 'Economic Agenda for Growth'.
many of these points are aspirational, these are all achievable
through concerted effort and a coordinated approach between centre
and states", said Birla.