Comments from Prof. R. Venkata Rao, Vice-Chancellor, National Law School of India University

THE first budget in the important Decade of Innovation is commendable. A good and balanced budget that it is,its focus on Transparency and Inclusive justice is really heartening.

Marginal increase in exemption Iimit of Income Tax should not dishearten the salaried classes as inclusive justice ordains them to make sacrifices with enlightened self interest.Direct Taxes Code is long overdue.

Promise to spend on Health,education and Security should be honoured in observance.

Tailpiece: This is 64th normal budget.64 is auspicious in Indian tradition and Pranab da deserves congratulations for being Kala Prapoorna(mastering 64 arts).

Ramu S. Deora, President, FIEO

A Growth Oriented Budget With Focus On Long Term Competitiveness Of Economy And Exports

Welcoming the Union Budget 2011-12, Mr. Ramu S Deora, President, Federation of Indian Export Organisations (FIEO) said that Budget provides a vision to Indian economy and rightly focus on agriculture and infrastructure besides exports for long term interest of the country.

Mr. Deora said that many of FIEO suggestions have been accepted by the Finance Minister including reduction of Customs Duty on raw silk, textiles intermediate, inputs for chemicals sector which will add to competitiveness of these sectors. Extension of Mega Cluster Scheme to 7 such clusters in Leather and 1 in handicraft will promote exports of these labour intensive sectors which are back on track after slowdown in 2009-10, said FIEO Chief.

FIEO proposed through Task Force on Transaction Cost to provide “All Industry Service Tax Refund” for Services used during the course of exports which has also been accepted. The Finance Bill has amended Section 75 of the Customs Act so as to pave the way for giving exemption to refund of duty drawback in case of genuine defaults, a proposal made by FIEO said Mr. Deora. 

President, FIEO appreciated the move to allow   self-assessment both for imports and exports which will greatly reduce transaction time and cost and will help the country to improve its ranking in” Trading Across Border” segment of “Doing Business 2012” Report.

While complimenting the Government for increasing interest subvention for agriculture to 3%, Mr. Deora suggested to re-look into grant of interest subvention for exports sector particularly for SME sector as the cost of credit has already gone up substantially with the adoption of base rate and interest rates are further looking northward.