Gujarat industry unhappy with budget

Vadodara, Feb 28 (UNI) The Federation of Gujarat Industries (FGI) and the Central Gujarat Chamber of Commerce and Industries (CGCCI) today termed the Union Budget 2007-08 presented in the Lok Sabha by Union Finance Minister P Chidambaram as ''disappointing''.

FGI president Yogendra Gangwal said though the budget had a mixed bag of progressive reforms, it had belied the expectations of the industry and the common man. ''There is no mention of Special Economic Zones (SEZ) in the budget which is the focal point of Gujarat's growth,'' Mr Gangwal said, adding that the Finance Minister did not touch upon any labour law reforms. The increased dividend distribution tax was the main cause for a dip in the Sensex, he said.

While welcoming the progressive schemes and budget allocations in the field of health, education, rural development, agriculture and textile sector, Mr Gangwal said raising the service tax exemption limit from Rs 4 lakh to Rs 8 lakh would benefit small service providers.

In its reaction, the CGCCI said the entrepreneurs were unhappy as the Finance Minister had failed to announce any special package for the growth of industries.

Noted NRI businessman Haresh Rilwala said there was not much in the Union Budget to attract NRIs to India. The Indian government should lift unnecessary restricions on NRIs and announce special provisions and relief in tax to those who want to set up industries in India.

UNI