New Delhi, Feb 28: The Confederation of Indian Industry (CII) on Thursday welcomed the Union Budget 2013-14, saying it a growth-oriented budget, which would kick-start the next cycle of investment in the country.
Expressing happiness that many of their suggestions have been found mentioned in it, CII president Adi Godrej said the budget makes laudable efforts to optimise growth drivers while addressing inclusive and sustained development.
“The budget meets most of our concerns regarding fiscal consolidation, investment incentives, and inclusive growth. These are in alignment with CII’s submissions in its pre-Budget Memorandum to the Finance Ministry,” said Godrej.
“Budget 2013-14 promises to adhere to the fiscal deficit roadmap as laid out by the Finance Minister last year. This will boost growth, curtail inflation and help in ratings. Emphasis on agriculture, technology and innovation and science and technology is very welcome as it adds to future growth prospects,” he added.
CII particularly welcomed the stress placed on inclusive growth and development.
“Plan expenditure has been raised by almost 30 percent, and inflationary pressures due to supply side measures are sought to be dampened. This would encourage further monetary steps to lower interest rates, which would spark investments. The expenditure on education and healthcare has been increased substantially, while skill development has received a big boost. This is in line with CII’s emphasis on enhancing human talent capacities,” said Godrej.
He further stated that the CII is happy to note that the budget aligns with its recommendation for not making changes to the indirect tax rates, which would have deepened the slowdown in industry.
The confederation also welcomed the measures announced to increase investment in the infrastructure and the energy sectors.
However, it believes that introduction of Commodities Transaction Tax could impact non-agriculture commodity transactions adversely and in the oil and gas sector, shift from cost recovery to revenue sharing is of concern as it could hamper exploration in remote areas. (ANI)