In a statement issued today, IACC President said that the Budget gives encouraging signal to the foreign investment in the country, with the FII’s bringing around US$- 20.9 Billion during the period April to December 2009, which could induct buoyancy in the stock market.
The attempt to bring down the fiscal deficit looks quite possible and the target to roll back to the growth rate of over 9% is also in the right direction, a pointer to which is in the allocation of 46% of the total budget allocation to the Infrastructure Sector, and the Power Sector, which is the dire need of the hour. An average of 20 K.M. of road laying per day, again is in strengthening the total infrastructure of the country without which it is not possible to achieve the desired industrial growth.
Relief in the Income tax, will definitely give a good relief to the common man with salary upto 5 Lakhs, as he will be required to pay only 10% tax, and the slab is 30% for salary beyond 8 Lakhs. However Corporates are very much disappointed with the increase in the MAT from the existing 15% to 18%, and only a relief of 2.5% in the surcharge, which is not in the right direction, more so when the industry is suffered with the global melt down, and the drastic fall of over 25% in the Exports.
The most negative aspect of the budget is the rise in the price of the petrol and the diesel, which will have a direct impact on the inflation, and also the Common man. “My expectations will be that the House will consider rolling back MAT to 10 per cent, and the surcharge be totally removed, on Corporates, and that there is no rationale in an increase in excise on Cement, which again is part of the Infrastucture Development,”
About Indo American Chamber of Commerce:
Established in 1968, the Indo-American Chamber of Commerce (IACC) is a non-government, industry led and industry-managed organization, playing a proactive role in India's development process and serves as a much needed link between the business communities of India and the United States of America. IACC is the only bilateral Chamber of Commerce in India, which is committed to development of Indo-US business and trade relations. The major objective of IACC is to promote Indo-American business, trade and economic relations. IACC promotes bilateral trade, investment and technology transfer, facilitates business collaborations, joint ventures, marketing tie-ups and strategic alliances through a set of proactive business-oriented initiatives. Please visit the website for more information:
For further information contact, Abhilasha, Branch Secretary, IACC, AP Branch @ 9989333886 or abhilasha@iaccindia.com
