Monday, March 9, 2009

Industry says govt is not friend in need

Industry says govt is not friend in need
he industry in the state has expressed disappointment, saying that the government has ignored it at a very crucial juncture.

Expressing the concerns, N N Upadhyay, president of Bangalore Chamber of Industry and Commerce (BCIC) said, “The industry is in the grip of an acute downturn and it is but normal for trade and industry to expect progressive measures. It is disappointing to note that the chief minister seems to have ignored the case of the industry at this critical point of global downturn.” Viswanathan, chairman of Confederation of Indian Industry (CII), Karnataka said, “The chief minister could have been more ambitious in presenting the budget proposals, particularly in the context of relatively low economic growth of 5.5 per cent in 2008-09.” But the industry appreciated Yeddyurappa for covering a large number of issues in a broad sweep in the budget.

Allocations made for education, infrastructure, power, irrigation, rural development, housing, water supply and sanitation are welcome as these are absolutely essential for economic development. It is hoped that the provisions made for power and road development will be sincerely implemented.” Karnataka Small Scale Industries Association (KASSIA) stated that expectations had been belied in the budget.

“On the whole at a critical situation, as in the present context, where the SME sector is struggling for growth there has not been any leverage by way of government support,” said Arvind N Burji, president of KASSIA.

State has constantly under- performed the country figures in GDP growth which is of serious concern. Industry is in the hope that provisions made for agriculture and irrigation will help these core sectors to come out of the prolonged crisis. Reduction in stamp duty on immovable property has been nullified by the increase in stamp duty on various types of agreements. Public debt at 27 per cent of the state’s GDP and interest burden of 11 per cent of revenue receipts looks like the government is getting into a debt trap.

No comments: