Gujarat: Farmer, middle-class friendly budget, says Local industry leaders

Local industry leaders termed the budget announcements made by Union Minister Piyush Goyal on Friday as pro-farmers and pro-middle class.

They said that some pro-industry proposals would have boosted the spirit of industry and exporters. However, representatives of farmers say measures are too little. Moreover, there should be clarity on how the benefits can be availed.

Talking to media persons after the announcement of the budget, Jaimin Vasa, president of Gujarat Chamber of Commerce and Industry (GCCI) said that this a popular budget taking into account upcoming elections for the Lok Sabha. "The budget has announced sops for farmers, the poor and the middle class. It would have been better if there were measures to promote MSMEs and exporters. Çompanies that are doing research or innovation should be supported. Those developing import-substituting products should be encouraged," said Vasa.

Durgesh Buch, senior vice president of GCCI said that the government had announced after demonetisation, with the increase in the tax-payer base, tax rates would be lowered in a phased manner. "With today's announcement of tax relief to individual tax-payers, the government has stayed by its word," said Buch.

Realtors are elated with the announcements. Jaxay Shah, national president of Confederation of Real Estate Developers of India (CREDAI) said that the formal recognition in the budget to reduce GST burden on home buyers based on GOM recommendations is a matter of satisfaction for the real estate industry. "Section 24 benefit relieving second houses from income tax on notional rent and exempting second homes investment from capital gains would revive the sluggish demand for housing. Increasing the TDS threshold to Rs 2.4 lakh and allowing two years exemption from notional rent on unsold inventory remove major irritants. Budget is a dream come true for real estate," said Shah.

However, farmers are not happy with the announcement. They said that there is no follow up measures. Jayesh Patel, president of Khedut Samaj Gujarat said that there is no clarity about how farmers will benefit from Rs 6,000 worth Direct Income Transfer for farmers having land holding up to two hectares. "First of all, the amount of Rs 6,000 is not sufficient. It translates into Rs 500 per month, which is nothing. Farmer's welfare schemes have been plagued with poor delivery. So how farmers, in villages where road and data connectivity is poor, can avail the benefit is a big question," said Patel. He said that there is no proper follow up in last years announcement of having Minimum Support Price (MSP) which is 50 per cent more than the cost of production, which also includes the cost of land as well as captive labour by the family members of the farmer. Patel said that the government should reduce the cost of production in agriculture, by reducing Goods and Services Tax (GST) on equipment used in agriculture.

WHAT POLITICAL, INDUSTRY LEADERS HAD TO SAY ABOUT THE BUDGET

This a budget for New India, and will help in realising the dreams of crores of Indians. The budget has something for everyone. The annual income support will benefit 36 lakh farmers in Gujarat. We welcome the announcements regarding cow conservation, pension for unorganised sector workers, ST benefit, higher spending for defence, and other vital areas. 
Vijay Rupani, Chief Minister

The budget makes a mockery of farmers. The government claimed that farmers' debt in the country is about Rs 11,68,000 crore. However, the Direct Income Transfer of Rs 6,000 per annum results in the benefit of only Rs 16.50 per day. Previous promise to double farmers' income is nothing but a jumla as there are no proposals in the Budget to realise it. 
Amit Chavda, president, GPCC

The budget has been prepared with villages, farmers, youth, women and middle class at its centre. The central government deserves accolades for the budget, which will benefit all sections of society. The PM Kisan Samman Nidhi is a historic announcement for farmers. The government has thanked the honest taxpayers by announcing income tax rebate. 
Jitu Vaghani, State BJP president

The budget would leave disposable income in the hands of the middle class as well as farmers which will help boost consumption and demand. Having said that, doles are good in the short term and will mitigate agricultural stress, but, what is required is structured reforms, and huge investment in rural agri infra, farm mechanisation, etc. 
Piruz Khambatta, Chairman, Rasna

The budget addresses current challenges being faced by the economy as well as the vision the government has India;s future. It has a clear focus on the agriculture sector, particularly the small and marginal farmers, the middle class, senior citizens, small-savers and workers in the unorganised sector. We see a positive momentum building for the housing and real estate sector. 
Deepak Mehta, chairman, FICCI Gujarat State Council

The interim budget has given much emphasis on the IT sector. Processing of Income Tax refund within 24 hours, creating one lakh digital villages will give a major boost to the sector. Transactions of over 17,500 crores have taken place through Government e-Marketplace (GeM), for the MSME sector to sell their products in a transparent and efficient way. 
Jaimin Shah, Chairman, Domestic Council, NASSCOM

We see this as a pro-growth budget with the focus on bridging Bharat with India. It is focused on infrastructure & rural development and employment generation. The tax reforms will lead to increased spending and boost the economy. A special mention has been made to MSMEs, thereby providing stimuli to local manufacturers. 
Achal Bakeri, CMD, Symphony

The budget has several announcements that can be game-changers. The direct income support to 12 crore farmers, a pension scheme for workers in the unorganised sector, and a tax rebate on income up to Rs5 lakh will leave more money in people's hands. 
Dr Vikram Shah, CMD, Shalby

The budget is tilted towards populism, but the government has maintained the fiscal discipline. Exemption of income tax for income of up to Rs5 lakh will boost personal spending. Consumer durables, FMCG, and automobile will be in focus as a result. Extension of tax holiday for housing will benefit infrastructure space. 
Aasif Hirani, Director, Tradebulls Securities

It is an entirely populist budget as per expectations. Job creation, adoption of technology, relief in tax burden to entrepreneur, focused on unorganised workforce and farmers with benefits like Direct Income Support of Rs 6,000 per year will benefit agriculture, which is the core of Indian economy. 
Chiranjiv Patel, regional director, South Asia for Entrepreneurs Organization