Budget aimed to sustain overall growth: Singhania

Mumbai, Feb 28 (UNI) Raymond Ltd Chairman and Managing Director, Gautam Hari Singhania stated the current general budget 2007-2008 has strived to continue the reform process so that overall growth can be sustained.

The increased allocation to agriculture in terms of rural infrastructure will spur agriculture to move beyond its present unsatisfactory growth rate of 2.3 per cent to the targeted four per cent in turn improving the lives of the people dependent on this sector, he told UNI.

A very welcome note in this budget is the greater focus on the soft infrastructure like education and training, health, which is very essential for our country if it has to continue on its high path of growth.

For the textile industry, the budget has been generally positive.

The TUF scheme has been extended till the end of the 11th plan period. Allocation under the TUF scheme for the next year has been increased which should expedite the release of the subsidy. Peak rates of the duty have been cut and import duties on polyester have been reduced. Increased allocation to textile integrated parks is very welcome as it will boost the set up of additional capacities to cater to the growing domestic market and export.

The extension of service tax to cover rental of commercial properties is unwelcome as it will increase the cost of operations of the retail sector.

Overall the budget continues with the financial prudence mandate and attempts to keep price stability, he added.

UNI