Budget 2009-10 was a blueprint for immense growth and progress in India. Not only did it promise rural development and industry growth across sectors but also to reduce the impact of global economic meltdown in India with relevant steps and provisions. An overall growth has been witnessed in the industrial sector. At a time when the entire world was caught in the slowdown, India emerged as one of the economic leaders with its consistent growth momentum. The Government kept its promise of infrastructural investments, making it a lucrative option for global investors. The duty reduction and work towards the goal of GST have helped industry remain competitive in the market. This has also enhanced the local demand resulting in further uplift of business environment of the country. We are confident that the Government will continue its promise with the same pace in 2010-11. To get industry on the fast-track, the Government should look at the following areas:
Develop India as the export hub for the US, Europe and Africa since the cost is a matter of concern for all the countries affected by recession. The Government must work aggressively to develop large and modern ports, road networks and communications to support the same.
Invest in R&D and component manufacturing for IT and communication industry that is essential to support the export hub. The Government must support and encourage such industries through special schemes.
Implement GST from April 1, 2010 as promised. GST implementation has become very essential as it will bring all manufacturing companies at a common platform ensuring healthy competition which in turn will benefit the end consumer.
Promote transportation as an industry and work out a transport policy allowing free flow of movement of vehicles between various states. Removal of registration fee is an essential requirement to help this industry. Also, the Government needs to look at other modes of transportation apart from roads such as railways and sea which will help in de-congestion of the load.
Look at industry as a growth driver and initiate steps towards that. To make this industry grow and contribute to the economy the following area's need attention during this Budget: Rationalisation of tax rates structure by removing surcharge on corporate tax, and further incentivising exports.
Indirect Tax
Fiscal measures such as the stimulus package should continue (reduction in excise duty, etc.) ensuring consistency in the current rate of growth.
The Central sales tax rates should be reduced to “zero”, as committed.
The Special additional duty should be abolished.
Source : Business Line