SME Times News Bureau | 02 Feb, 2019
India Inc. has welcomed the announcements made in the
Interim Budget on Friday and called it forward looking, primarily due to the
enhancement of income tax rebate, measures to boost rural economy and the SME
According to the industry, proposals made in the Interim Budget will increase
the levels of consumption and in turn provide a fillip to the domestic
The Budget presented at the Lok Sabha by Finance Minister Piyush Goyal
contained proposals to aid small farmers and the middle class.
Welcoming the budgetary proposals, industry body Confederation of Indian
Industry (CII)President Rakesh Bharti Mittal said: "The measures announced
in the Budget are likely to provide a significant impetus to consumption
spending in the economy, which will boost growth in the near to medium
"In an astute balancing act, the Finance Minister has presented a budget,
which addresses issues of every segment of society. This a true peoples
Reacting to the Interim Budget 2019-20,
Sandip Somany, President, FICCI said, "It is a progressive
budget that addresses both the current challenges being faced by the economy as
well as presents an outline of the vision the government has for the future of
India ten years ahead."
The budget contains several
comprehensive proposals that would benefit each of these sections of our
society and this is in line with government's philosophy of 'sabka saath, sabka
vikas'," he said.
"FICCI had suggested the need for
Direct Income Support for farmers and is happy to see its inclusion in the
budget. This is critical as through this measure the government will be able to
cover all the small and marginal farmers as compared to the MSP scheme which
benefits just about 30% of such farmers. By also committing funds upfront from
the central pool, any resistance from states will be avoided," added Somany.
Another high point of the budget is the
announcement of a mega pension program to provide social security to workers
engaged in the unorganised sector, said Somany.
The proposals related to direct tax now
offer a full tax rebate to individuals having an annual taxable income of up to
Rs 5 lakh. This would be extremely beneficial for the lower middle-class
taxpayers comprising self-employed, small businesses, small traders, salary
earners, pensioners and senior citizens.
In addition to this, the increase in the
standard deduction limit, the threshold for TDS on interest income from bank
and post office deposits, upward revision of TDS threshold for tax on rental
income, exempt of levy of income tax on notional rent on second self-occupied
house and extension of exemption of capital gains to second residential
property of up to Rs 2 crore, are all noteworthy measures.
"The above, we feel, would improve
demand in the economy and support investments going ahead. We see a positive
momentum building for the housing and real estate sector which has major forward
and backward linkages. All of these are positive for growth, will have a
multiplier impact and improve the outlook for the economy in the coming years," said Somany
Ganesh Kumar Gupta, President, FIEO commenting on
the Interim Budget said that direct income support to farmers at the rate of
Rs.6,000/- per year and the mega Pension Yojana for unorganised sector workers
at the rate of Rs.3,000/- per month would meet the objective of social justice
which coupled with Ayushman Bharat will provide modest livelihood to our
people in poor strata of the society.
MGupta said that creation of a separate “Department
of Fisheries” will put further focus on marine exports which has already
crossed over USD 7 billion to move to USD 10 billion by 2020-21.
The single window clearance for ease of shooting of
films will help in augmenting foreign exchange through film/animation industry.
The introduction of comprehensive digitalization of export/import transactions
and use of RFID technology will not only reduce the time taken in movement of
exim cargo but will also help in identifying the bottlenecks so as to plug them
for seamless movement, he said.
Gupta welcomed the comprehensive 10 dimensional
vision, focussing on sustained development, which
provides a road map for the country as well as its economy.