FICCI affiliated Utkal Chamber of Commerce and Industry (UCCI) today said corporate India’s expectations were not “fully met” though the overall Union Budget may benefit the rural economy.
“On a scale of 1-10, UCCI will rate this Budget as 6,” said UCCI’s president Ramesh Mahapatra said.
While, increased provisions for infrastructure, railways, roads and ports as also for agriculture to double the farmer’s income in last 5 years is praiseworthy, yet corporate sectors and Industry and Trade body expectations were not fully met, the UCCI maintained.
“The reduction of Corporate Tax by 5 per cent for MSME units up to a turnover limit of Rs 50.00 crores is welcome step, but the overall Corporate Tax has not come down to usher in growth in the GDP by the manufacturing and the service sector,” Mahapatra said.
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Similarly, the commerce and industry body pointed out that expectations were high for decreased lending rates by banks as they are flushed with funds, after demonetisation for India incorporated to be competitive with neighbouring countries like, China, Thailand and others where their interest rates are between 5-8 per cent.
The lending interest rates should have come down substantially from present level of 10-15 per cent for all businesses, the UCCI said while welcoming the announcements made by Union Finance Minister Arun Jaitley for Odisha.
“The two welcome announcements for Odisha are: A Crude Oil Reservoir at Chandikhol and A Commemorative Memorial for Buxi Jagbandhu at Khorda,” Mahapatra said.
It however, said that the overall the Budget may benefit the rural economy, but Corporate India’s expectations were not fully met.