Port Wings News Network:
Commenting on the Union Budget, Mr Sharad Kumar Saraf, President, FIEO said that the budget announcements are aimed at transforming India to usher in US$ 5 trillion economy and make the country the best place for Ease of Living and Ease of Business. The budget addresses, observe Mr Saraf, some of the basic challenges faced by manufacturing as well as exports including flow of credit, infrastructure bottlenecks, labour laws, skilling, etc.
The export credit declined by 22% as on 31st December, 2018 compared to the same period in 2017. Rs.70,000 crore allocated to PSU banks will ease the flow of credit. The interest subvention of 2% given to MSME as well as payment platform for bill filing for MSME will help in flow of credit at competitive cost. The investment of Rs.100 lakh crore in infrastructure in next 5 years through Bharatmala, Sagarmala, Jal Marg Vikas Project will help in improving logistics, reducing transportation cost and increasing competitiveness. The PMMSY for the robust fisheries management framework will give a push to marine exports from the country in which India has emerged as the largest exporter though huge untapped potential still exists. The support given to GI products and artisans to showcase in global markets will provide much needed exposure to them paving the way for further exports. Focus on clusters in Bamboo, Honey and Khadi will not only create huge employment opportunity but will also give a push to their exports. The identification of 17 iconic tourism sites will give a push to tourism exports in the country.
The emphasis on digitalization and faceless assessment will go a long way in ensuring objectivity, transparency and speed, said Mr Saraf.
However, President, FIEO said that Government may look into extending reduction in Corporate Tax to all companies irrespective of turnover so as to attract overseas investment waiting on the fringes both in US and China though enjoying much lower Corporate Tax in their respective countries.