The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has welcomed the Union Budget for the initiatives that will increase employment, economic growth, and change the direction of growth.
Terming the budget honest and “bold”, the FKCCI has said that the budget is aimed at reviving the economy “in these difficult and challenging times.”
C.R. Janardhana, president, FKCCI, in a press release, has lauded the ambition the Union government to double milk production to 108 million tonnes by 2025.
While welcoming the announcement of five new Smart Cities, it has urged the government to complete Smart City projects, which have already been announced.
“The tax changes of tax rates and abolition of Dividend Distribution Tax will settle the long outstanding demand. Concessions to startups and for the affordable housing sector will boost the respective sectors,” the release said.
Welcoming the allocation for Bengaluru’s suburban railway, the FKCCI has said that it was the need of the hour and would de-congest the city roads. “The announcement of expressway between Chennai and Bengaluru will reduce travel time for passengers and also help goods movement to almost 60%. This will help industries who are importers or exporters from Bengaluru and surroundings using the Chennai port facilities,” the release stated.
Watch | Highlights of Union Budget 2020-21
Implementation is key: KASSIA
The Karnataka Small Scale Industries Association (KASSIA) has welcomed the Union Budget 2020, while cautioning that everything hinges on the implementation as budget measures need to be effectively followed and executed in a federal set up.
R. Raju, president, KASSIA, welcomed proposals such as simplifying GST filing of returns and the measures to help rural economy by directing investments to agriculture and related areas.
However, on a cautionary note, the KASSIA said: “One gets an uncomfortable feeling that the budget has tried to address a number of issues and may have unwittingly missed the wood for the trees. The problems facing the Indian economy now require measures to put back on track growth in investment and consumption, which seem to be missing. We believe this is the central issue for the economy to help employment and income.”
KASSIA has also said that the general measures proposed to revive the economy, such as creation of the investment clearance cell, higher insurance cover for exports, reversion of duties and taxes on export products along with the special focus on electronic and semi conductor equipment manufacturing value chains, would provide the necessary stimulus needed to revive the economic growth in the country.
