Budget cheers Gujarat traders

Like every year, this year too, the honchos and several trade bodies have welcomed the budget 2006-07, announced by the finance minister P Chidambaram, with more pros and few cons.

Amit Jatia, MD & joint venture partner, McDonald's (western India) believes that the FM has recognised the importance of the growing food-processing industry by giving it top priority.

"The benefits to farmers through excellent credit options and proposed exemption of excise duty on processing of meat, fish and poultry products, will be a big boost for the industry," said Jatia. He welcomes the concept of Good & Service Tax (GST).

Similarly, Confederation of Indian Industry (CII) strongly feels that this budget has focused on growth, employment generation and bringing rural India under the ambit of the growth process.

CII said the budget is a continuation of the growth oriented measures announced in his previous two budgets that aim to make India a global manufacturing hub and at the same time target growth in the rural sector to enable the effect of growth trickle down to the 'aam admi'.

Number of measures have been announced that would go a long way to boost the agriculture, food processing and the rural sector, said Yogesh Deveshwar, president CII, while commenting on the Union Budget 2006-07.

He said the FM has also emphasised on developmental aspects, which include substantial increase in outlay of 31 per cent on education and 22 per cent on health compared.

CII also said the increased budgetary allocation for Bharat Nirman program by 54 per cent would help accelerate development of rural infrastructure, which is a critical need to unlock the potential of the rural hinterland.

Further, the finance minister has treated food-processing sector as a priority sector for bank credit, which will help this sector realise its growth and employment generation potential, CII reiterated.

Infrastructure, an important element of manufacturing sector has also got a face lift in terms of FDI policy changes that would attract India as a favorable investment destination for manufacturing sector.

CII feels that this initiative will give a boost to Indian manufacturing sector especially in textiles, automobiles and components, metals and petroleum based industries.

However, Pratul Shroff, president & CEO of eInfochips Ltd, an IT company based in Ahmedabad, welcomed decision on the FM's intent to make India a preferred destination for the manufacture of semi-conductors and other high technology IT products.

"A domestic manufacturing base for semiconductor, IT and electronics goods will create a healthy semiconductor eco-system in the country and result in vibrant hardware electronic and electronic product market in India," said Shroff.