Budget futuristic, say Coimbatore industries

Industry and trade associations generally termed the budget as a “growth-oriented, futuristic” one. But there was a sense of disappointment as well, as Coimbatore’s economy has been passing through a sluggish phase the last 3- 4 months following demonetisation.

The industry has been waiting for some bold move, but nothing materialised, industry insiders said.

Hailing the announcements on doubling farmers income, skilling of youth and development of infrastructure to provide end-to-end solution by integrating road, rail and ship traffic, the Chairman of Southern India Mills’ Association M Senthilkumar said, “All of them will benefit the textile industry across the country.”

The association was relieved that one of their proposals, on continuing the existing tax structure including service tax and optional cenvat (extended for the textile industry till the implementation of GST), was accepted.

Ujwal Lahoti, Chairman, Texprocil, felt that the export sector, which is languishing due to low overseas demand and rising protectionism did not find a mention in the budget. Texcprocil has appealed for restoring some of the incentives relating to interest subvention for merchant exporters and cotton yarn and MEIS benefit for cotton yarn.

President of Tirupur Exporters’ Association Raja M Shanmughan noted that the allocation of fund for Rebate on State Levies (ROSL) would be insufficient as the total exports from the date of notification (September 20, 2016) to the end of this fiscal would clock ₹55,000 crore. “Even if the rebate rate is calculated at 3 per cent, it would work out to ₹1,650 crore.”

Stating that the Budget overall was well-structured, the President of the Indian Chamber of Commerce and Industry, Coimbatore, Vanitha Mohan said the impact of the labour reforms is yet to be felt at the field levels.

KK Rajan, President, Southern India Enginering Manufacturers’ Association said it was disappointing for SMEs to note that there were no incentives for investments for expansion in plant and machinery, but for a mere reduction of 5 per cent tax , which is not commensurate with the present inflation.

SIEMA looks forward to an effective amendment to the working mechanism of the Negotiable Instruments Act to minimise long-drawn court proceedings, he said.