UNION BUDGET 2014-15 PROMISES PROGRESS: PHD CHAMBER

UNION BUDGET 2014-15 PROMISES PROGRESS: PHD CHAMBER

UNION BUDGET 2014-15 PROMISES PROGRESS: PHD CHAMBER

No.PR-59
July 10, 2014
New Delhi

 

UNION BUDGET 2014-15 PROMISES PROGRESS: PHD CHAMBER

The Union Budget 2014-15 is encouraging on building consumers’, investors’ and general confidence and aims at enhancing growth, creating additional employment opportunities and containing inflation with the desired focus on garnering much needed investments, both public and private, said Mr. Sharad Jaipuria, President, PHD Chamber in a press statement issued here today.

The proposals unveiled in it on various socio-economic fronts of the economy indicate promises of progress in coming times. The focus on rural infrastructure, agriculture infrastructure, urban infrastructure, manufacturing revival, tourism, education, banking and finance and foreign direct investments are inspiring and would go a long way to rejuvenate the economic growth, going forward.

The much expected enhancement of the income tax limit from Rs. 2 lacs to Rs. 2.5 lacs, enhancement of investment limit under Section 80C from Rs. 1 lac to Rs. 1.5 lacs and enhancement of rebate on investments in self owned house from Rs. 1.5 lac to Rs. 2 lac would restore consumers’ and investors’ confidence and propel growth, said Mr. Jaipuria.

The 10 years tax holiday for undertakings that generate and transmit power is appreciable. Investment allowance of 15% to manufacturing companies investing Rs 25 crore in plant and machinery would accelerate capital investments and propel manufacturing growth, said Mr. Jaipuria.

Focus on increasing irrigation facilities, farm markets, financial help to landless farmers and Kisan TV to provide real time information to farmers would help to increase productivity of the farm sector.

Steps undertaken to revive SEZs would help to rejuvenate the investment cycle and facilitation to manufacturing units to sell their products through retail and e-commerce would reduce the selling cost and benefit both manufacturers and consumers.

Focus on GST implementation and discussions with state governments in this regard are encouraging. We believe, GST will streamline the tax administration, avoid harassment of the business and result in higher revenue collection both for the Centre and the States, said Mr. Jaipuria.

Focus on industrial infrastructure such as plan to establish 7 industrial cities in India would enhance industrialization and create employment opportunities in the economy, he said.

The allocation for urban infrastructure earmarked at Rs. 50,000 crore are really appreciable and these announcements would speed up the pace and urbanization in the country and help economic growth to move fast.

The Roadmap made for fiscal consolidation in the next 3 years is inspiring on reduced fiscal deficit at 4.1% of GDP in 2014-15, 3.6% in 2015-16 and 3% in 2016-17. Enhancement of FDI limit in insurance and defence sector will increase the capital inflows in the coming times, said Mr. Jaipuria.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)