Bihar Chamber of Commerce president DP Lohia termed the Budget as most pragmatic in view of the prevailing economic conditions in the country. He said the economy is facing a slowdown in industrial growth, declines in savings and investment, export growth and inflows of foreign direct investment.

Lohia emphasised the need for evolving a broad consensus to bring down fiscal deficit which is going up primarily on account of a rise in unproductive expenditure. The proposals announced by the Union finance minister will help develop the small-scale sector and increase foreign exchange earnings and industrial productivity, Lohia said and added that the Budget will provide a fillip to the steeland cement industries and the housing sector.

The chamber further adds that the proposals will accelerate the development of the small-scale sector because of the reinstatement of 100 per cent Modvat claim. Lohia pointed out that since the north-eastern states have been granted a 10-year tax holiday, a similar concession should have been granted to Bihar also as there is hardly any industry in the state.