E-Paper
Nothing for us in budget, say Ludhiana’s industrialists
Give Nirmala Sitharaman’s budget a thumbs down, saying they were expecting more relief in view of the losses they suffered in 2020 owing to Covid outbreak
City-based industrialists gave a thumbs down to finance minister Nirmala Sitharaman’s budget on Monday, stating that there was nothing in it for them and that they were highly disappointed as they were expecting some relief package in view of the Covid losses they suffered in 2020.
Federation of Industrial and Commercial Organisation (FICO) chairman KK Seth said the bicycle industry has again been completely ignored. “We (India) are the second largest bicycle manufacturers in the world, coming only after China. But the government is not focusing on this industry even in these testing times. The government should have announced a special package to help us upgrade and overtake China,” said Seth.
Sewing machine development club general secretary Kulwant Singh said, “We were expecting a special package from the government but we have been left empty-handed. The industry is struggling to stand on its feet but the government doesn’t seem to care.”
Exporters too have said that they are dejected with the budget. “We have been demanding freight equalisation scheme and relief in terms of income tax for exporters but the government has not paid heed to any of these demands,” said Jaspal Singh Shahpuri, vice-president of the Chamber of Industrial and Commercial Undertaking (CICU).
Ludhiana woollen manufacturers association and knitwear club president Darshan Dawar said, “The government has announced that seven mega industrial parks will be established across the country in the next three years. The number of such parks should have been higher. The government should also have provided some special relief package for the industry.”
The reduction of customs duty on import of gold from 12.5% to 7.5% has failed to please the jewelers, who say that as the government has also imposed 2.5% agri cress on gold, there won’t be much profit for them.
Thapar jewellers owner Tribhuvan Thapar said, “The government should have given some major relief as the gold (24 carat) rates have increased from around ₹34, 000/10gram to around 50, 000/10gram amid the pandemic.”
FICO vice-president Manjinder Singh Sachdeva Senior said that the Credit Link Capital Subsidy Scheme has not been reintroduced, even when the industry was seeking increase in its limit. “The scheme should have been made permanent as it is the only scheme for the technological upgrade of the MSME industry,” he said.
A few see ray of hope
A few announcements have, however, been applauded by some sections of the industry. Among those are the reduction in customs duty on imports of semi-flat and long products of non-alloy, alloy and stainless steel and duty-free import of steel scrap. The industrialists said that this will reduce the steel prices in the country and to some extent end cartelisation.
Chamber of Industrial and Commercial Undertakings (CICU) general secretary Pankaj Sharma said, “Reduction in custom duty or scrap and increase in customs duty of several manufactured items is a welcome step. Encouragement to start-ups and low-cost housing projects will boost investment and double the budget for MSME sector, which is also a good sign.” He added that the voluntary vehicle scrappage policy will also boost the automobile sector.
Knitwear and textile club president Vinod Thapar stated that announcement of a mega textile park in Punjab is a major relief for the textile and hosiery sector. He added that the reduction of the basic customs duty on caprolactam, nylon chips and nylon fiber and yarn to 5% will encourage the growth of the Man Made Fibre (MMF) sector, especially the MSMEs.
Former president of the federation of Indian Export Organisation (FIEO) SC Ralhan and Chartered accountant MK Gupta said the government has simplified taxation through faceless dispute resolution committee among other steps. Also income tax assessment time-limit has been reduced to 3 years from 6 years, which is a major relief.
MBD Group’s joint managing director Sonica Malhotra Kandhari said, “Allocation of ₹64,180 crore to healthcare, which also includes Rs.35,000 crore for Covid-19 vaccines, is a welcome step. However, we were looking for some measures related to travel and hospitality sector.”
