Trade, industry terms budget as growth oriented

COIMBATORE: The trade and industry, particularly MSME and Textile industry in the region, welcomed the union budget presented by Finance Minister Arun Jaitley today, terming it as growth oriented and with long term perspective.

Almost all the associations and bodies representing commerce and industry welcomed the introduction of Trade Infrastructure Export Scheme with an allocation of Rs 3.96 lakh crore, which will help the Indian exporters to become globally competitive.

In his reaction, FIEO Southern Regional Chairman, A Shaktivel welcomed the budget saying that more focus on Government investment on infrastructure was a move on right direction as private investment was showing slow growth.

Moreover, this would help exporters, who at present are forced to incur additional expenditure of more than seven per cent of their exports due to poor infrastructure.

Southern India Mills' Association chairman M Senthilkumar welcomed and termed it as a growth oriented budget enabling all the manufacturing sectors to grow at a faster rate and the people of the Nation to improve their standard of living.

Objective of doubling farmers' income, housing for one crore rural Indians, skilling of youth by establishing 100 India International Skill Centre, Development of Infrastructure to provide end to end solution by integrating Road, Rail and Ship would greatly benefit the textile industry that is spread across the Nation, he told reporters here.

The other benefits extended such as 5 per cent reduction in the tax for MSME industrial units, additional allocation to the banks for NPA accounts, cashless transaction, labour reforms, relaxation of FDI norms by abolishing Foreign Investment Promotion Board (FIPB) would also benefit the textile industry, he said.

The Cluster Approach for contract farming would greatly benefit the predominantly cotton based textile industry, Senthilkumar said.

Talking to reporters, office bearers of local Chapter of Indian Chamber of Commerce and Industry, welcomed the proposal, particularly the Rs 3.94 crore infrastructure development scheme, which will be help to boost in export front.

Past president of Chamber, D Nandakumar said that one crore affordable housing scheme in rural sector will help boost the construction sector and also other related industries.

Tirupur Exporters Association president Raja M Shanmugham, in a statement said that the budget was an encouragement to the clusters like Tirupur, as more than 80 per cent of MSMEs were located in Tirupur and welcomed the reduction of Income Tax to MSMEs from 30 to 25 per cent The announcement on reduction of banks lending rates as an effect of demonetization would be an impetus to Tirupur as it will help to increase the competitiveness of exporting units, he said.