Kerala Industrialists disappointed with the budget

Kochi 28^th February 2013: Leading industrialists from the state expressed the feeling that the Union Budget 2012-13 presented by the Finance Minister P Chidambaram

in the parliament failed to address the core issues facing the
economy.

A majority of the 30 odd industrialists who participated in the budget
viewing session organized by the Confederation of Indian Industries
(CII) expressed their disappointment over the main proposals of the
budget.

CII (Kerala) vice chairman C J George said that “given the seriousness
of the economic context in which the budget is presented, the finance
minister did not have sufficient measures for revitalizing the economy
and its growth”. Though he tinkered with the economy here and there
the proposals like the taxing of the super rich and the tax on
corporates etc will have a relatively dampening effect.

He said that the proposal to make mutual fund agents members of the
stock exchange was a surprise element in the budget. He said that the
commodity exchanges and the commodity market could take a beating due
to the commodity transaction tax (CTT).

Mr Shyam Srinivasan of Federal Bank described the proposal to start a
women’s bank as a “headline item”. He however said that the interest
subvention on agricultural loans that was extended to cover private
sector banks would help to increase agricultural finance in a state
like Kerala where private sector banks are strong.

Mr Shivdas B Menon of Sterling Farms said that the proposal to
increase allocation for the coconut replantation scheme will help
Kerala. Coir industry will also benefit due to the incentives given to
handmade coir carpets.

Sanjay Vijayakumar, managing director MobMe said that the incubation
centres will benefit due to the proposal to allow companies donate to
such centres as part of their CSR activities.