CHENNAI/COIMBATORE/MADURAI: The Union Budget has evoked mixed reactions from industries and their associations in Tamil Nadu, with a majority of them hailing the government’s decision on capital infusion in public sector banks and incentives for startups, while expressing disappointment over ‘unfair treatment’ of small and medium industries, the largest employer in the country. The Budget, Ramkumar Ramamoorthy, president of the Madras Chamber of Commerce and Industry, said has defined the roadmap for India to become a $5 trillion economy. “This Budget will boost growth by improving the ‘ease of doing business’ and social inclusion,” says Ramamoorthy.
“Minister Nirmala Sitharaman has accepted MCCI’s submission and proposed to create a development finance institution for long-gestation infrastructure projects.” Welcoming the ‘balanced’ Budget, Managing Director of Lakshmi Machine Works, Sanjay Jayavarthanavelu expressed concern over the impact of `1 cess on petrol and diesel on logistics sector. S Rethinavel, senior president of TN chamber of commerce and industry, says cess could spark fresh concerns over inflation. S Theenathayalan, Head of Economics Department Madura College expressed similar concerns.
“The 2 per cent tax deduction at source on cash withdrawals over `1 crore is a welcome move,” says Jayavarthanavelu, who is also the chairman of CII southern region. South Indian Chamber of Commerce president R Ganapathi welcomed the incentives doled out for the e-vehicle sector, while also expressing concern over the impact it would have on the other auto component manufacturers, who have invested heavily on infrastructure.
“About 60 per cent industry expectations have been fulfilled,” says Indian chamber of commerce and Industry(ICCI) Coimbatore, president V Lakshmi Narayanasamy. Speaking on issues that have not been addressed, he says: “GST rates have not been revised, they have announced incentives for startups, but none for traditional industries... This is a bit worrying.”
“The focus is on improving agriculture and the startup ecosystem, which, in turn, will boost the employment generation,” says G Karthikeyan, convenor of CII taxation panel. “Finance Minister’s assurance that startups and investors will not be subjected to tax scrutiny for the value of their shares, if they file requisite declaration, is a big relief,” says Karthikeyan.