Hyderabad, Jul 6 (IANS): Industry in Telangana on Friday termed the Union Budget 2019-20 as balanced and pro-growth.

D. Raju, Chairman, Confederation of Indian Industry, Telangana, said the Budget addresses the issues of both banking and NBFC sector.

He said reducing corporate tax to 25 per cent on companies with turnover up to Rs 400 crore is a positive step. He also hailed the initiatives for the MSME sector.

"The manufacturing sector has also been provided thrust with announcements for setting up of mega plants in areas such semiconductors, laptops, solar products etc," he said.

The CII feels that the Budget laid focus on clean India by encouraging the purchase of electric vehicles by lowering GST rates from 12 to 5% and additional deduction of Rs. 1.5 lakh on interest paid on loans for purchasing electric vehicles.

He also termed announcement of national education policy with focus on research, innovation and skill development a positive step.

Krishna Bodanapu, Vice Chairman CII Telangana and Managing Director & CEO, Cyient Ltd, said that at a macro level 8 per cent economic growth is possible. He believes that easing FDI rules and investments in various sectors will stimulate growth.

"The Budget announcement was a balancing act ensuring growth and combating inflation," he said.

Anil Epur, former Chairman, CII Southern Region said that the budget spoke on adding more value to the agri sector with announcement of 10,000 new FPO's which is remarkable. Focus has also been provided to the fisheries sector by announcements of fisheries schemes to augment fish production. However, the Budget did not mention anything on the R&D in agriculture.

Mahesh Desai, Managing Director, Meera & Ceiko Pumps Ltd mentioned that the Budget was a welcome step for MSME Sector with focus on credit availability, establishing mechanism for delayed payment from PSUs and alternative sources of funding.