North East has received 21 pc hike in budgetary allocation:ICC

The Indian Chamber of Commerce (ICC) Friday stated that the interim Union Budget has provided major budgetary boost to the North East region.

North East India has received a 21 per cent hike in budgetary allocation with assured infrastructural developmental initiatives in inland waterways and connectivity, ICC director general Rajeev Singh in a press release said.

"With universal electrification and digital connectivity rural India is destined to generate the next growth wave of employment generation and North East India is slated to be the new growth hub of India", Singh said.

Stating the ICC welcomes measures taken in the agri and allied sector, he said, "the interim budget 2019-20 has announced the Pradhan Mantri Kisan Samman Nidhi that will be effective from December 1, 2018.

 

This scheme will assist small and marginal farmers of NE region.

"It has also promised Rs 6000 per year for farmers owning upto two hectares of land. This will help in providing structured income support to poor landholders to procure seeds, machinery and other input requirements," he added.

On the budget announcing to double the amount of rural interest subvention of 2 per cent for animal husbandry and fisheries sector and a 2-5 per cent interest subvention for farmers struck by natural calamity, the ICC DG said this includes 2 per cent upfront interest subvention and additional 3 per cent for timely payment.

Assured income flow and interest rate subventions would aid North East farmers to deal with seasonality of income and risks from natural calamities, besides supporting allied sector activities in agriculture leading to value addition, Singh pointed out.

On MSME, he said "GST-registered SME units will get 2 per cent interest rebate on incremental loan of Rs 1 Crore.

The requirement of sourcing from SMEs by Government enterprises has been increased to 25 per cent.

Interest subvention and mandatory government procurement will aid in improving working capital flow and market creation for MSMEs".

The MSME sector in the Northeast should enhance its capacity to manufacture and deliver competitive goods to take advantage of the scheme, he added.

"Appreciating the allocations made for Physical Infrastructure, including Pradhan Mantri Gram Sadak Yojana, Railways, Singh said stimulus for railways, road and inland waterways will help to build physical connectivity in remotest corners of India, including NE region.

India to have one lakh digital villages by next 5 years will help in ironing out the rural-urban divide in digital connectivity with N-E India in particular sharing international borders with Myanmar, Bangladesh, China and Nepal can benefit immensely from this advent in technology, he added.