Budget continues to spur growth, Mr Chandrasekhar

29 Feb '08

3 min read

Further, the Finance Minister in this budget has kept the peak rate of customs duty on non-agricultural products unchanged. This would help Indian industry in the face of the appreciating Rupee.

FICCI also welcomes the decision to lower excise duties on a wide range of products and the across-the-board reduction in cenvat rate from 16% to 14% as this will give a boost to the manufacturing sector.

FICCI members from the pharma industry have expressed satisfaction with the government's decision to extend the tax benefit from in-house research to outsourced research.

The massive loan waiver, to the tune of Rs. 60,000 crores, announced for the farmers will serve its purpose only if parallel reforms are undertaken in the agriculture sector.

Increasing agricultural productivity, strengthening agri-marketing infrastructure and rejuvenating extension services are essential to ensure that the farmers do not fall back into another debt trap in a few year's time.

FICCI has also welcomed the announcement on strengthening and deepening of the corporate bond markets. This would be particularly helpful for mobilizing funds for large infrastructure projects.

The removal of Banking Cash Transaction Tax as well as further modification of the Fringe Benefit Tax are also a welcome steps.

Finally, the announcement of a tax rebate on contribution by the youth for health insurance for their parents is a progressive move and is in line with FICCI's recommendation.

Federation of Indian Chambers of Commerce and Industry

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