VISAKHAPATNAM: Union Budget presented on Friday by finance minister Nirmala Sitaraman, is broadly in line with the expectations of the industry bodies. People from agriculture, MSME, retail, real estate and logistics sectors hailed it as a growth-oriented one.
The Union Government has once again reiterated its steadfast commitment, with key focus on infrastructure development and several benefits for the MSME sector. Andhra Pradesh Chambers of Commerce and Industry Federation welcomed the Budget’s focus on last mile delivery with emp-hasis on improved rail and road connectivity.
“With a view to enhance connectivity, a massive push has been laid to all forms of physical connectivity via industrial corridors. Bharatmala, an investment of Rs 80,250 crore to build 1.25 lakh km of village roads, is indeed agood initiative,” said G. Sambasiva Rao, president of Andhra Pradesh Chambers of Commerce and Industry Federation.
“Development and maintenance of transport infrastructure to reduce congestion and improve access to rural markets will create a positive ripple in agriculture sector. Allocation of Rs 50 lakh crore investment for railway infrastructure, by using Public-Private Partnerships will unleash faster development, completion of tracks and freight services.”
The credit boost to MSMEs, through Rs 350 crore interest subvention and 2 per cent interest subvention for GST-registered MSME, on the fresh or incremental loan will help business and spur the waning economy. Also, introduction of Rs 1 crore MSME loan will bring great relief to small business owners, making easier accessibility and processing of loans.
This in turn will translate into the stability and growth of the sector, with the sustenance of existing business and birth of new ones. Also, the increase of turnover of companies, that can avail of 25 per cent tax slab to Rs 400 crore would lead to further capital in the hands of business to invest in growth.
At the same time, Confederation of Real Estate Developers' Associations of India AP Chapter also lauded the Budget as it boosts affordable housing. The government has announced tax benefits that will definitely spur demand for affordable housing. Interest deduction was enhanced to Rs 3.5 lakh for affordable housing from the existing Rs 2.5 lakh.
“This can help attract first-time home-buyers, who are eligible under Pradhan Mantri Awas Yojana. However, there was no change in income tax slab rates,” Credai AP Chapter general secretary K. Subashchandrabose said.
We anticipated the government will increase income tax rebate from Rs 5 lakhs per annum to Rs 6 lakhs per annum,” Credai AP Chapter General Secretary K. Subashchandrabose said.
