Kolkata, Feb 28 (IANS): Industry associations and businessmen in West Bengal gave the thumbs-up to Finance Minister Arun Jaitley for an industry-friendly budget, especially for reducing corporate tax and his government's special focus on the east zone.
"The budget seeks to provide an environment that attracts investment in industry and propels economic growth," T.V. Narendran, managing director of Tata Steel's operations in India and south-east Asia, said.
"The proposal to do away with different types of foreign investment caps and replace them with a composite cap is welcome.
"Quick implementation of market and policy reforms proposed in the budget will help in achieving a GDP growth of 8.5 to 9 percent."
Railway wagon maker, Titagarh Wagons, lauded the finance minister for focusing on the eastern zone.
"The union minister's proposal that special financial assistance be given to West Bengal and Bihar raises expectations among the people in the east. This goes to show that the central government is sincere in its efforts to boost the economies of the eastern states," executive chairman of the wagon maker J.P. Chowdhary said.
Bengal Shristi Infrastructure Development, a leading infrastructure player in the state, said the reduction in corporate tax from 30 percent to 25 percent in the course of the coming four years will benefit entrepreneurs and commerce in the long run.
"Lot of thrust has been given on infrastructure creation, which will ensure good amount of employment and have a phenomenal effect on the economy," he said.
The Indian Chamber of Commerce (ICC) said the budget was able to balance its key focus areas on direct financial reforms with "ease of doing business" and included the financially weaker sections of the society in the growth process.
"The announcement of setting up National Investment and Infrastructure Fund in which centre will allocate Rs.20,000 crore each year for industry usage - this will boost confidence of private infrastructure companies and help to boost much needed investment in infrastructure," ICC director general Rajeev Singh said.
MCC Chamber of Commerce said the scaling up of public investment in infrastructure growth like roads, railways and irrigation facilities though a total increase of Rs. 70,000 crore will boost up the growth of these sectors.
"The finance minister has viewed CAD (current account deficit) to remain below 1.3 percent of GDP in 2015-16 and fiscal deficit at 3.9 percent of GDP which is much higher than the standard norm of 2.5 percent for a healthy economy.
"The GDP growth for 2015-16 has been projected over 8 percent," the association's president A.K. Saraf said.