Union Budget: In Gujarat, expectations unfulfilled, welfare sectors were "disappointed"

For Gujarat industry, the Union Budget was a mixed bag, especially because benefits for the healthcare sector fighting the pandemic were expected.

President of the Gujarat Chamber of Commerce and Industry, Hemant Shah, stated (GCCI), "The healthcare sector has suffered immensely due to the pandemic. Some specific relief measures or incentive schemes were expected for the sector."

Though the GCCI applauded the provisions for the Emergency Credit Line Guarantee Scheme and the Credit Guarantee Trust for Micro and Small Enterprises, it felt the PLI (Production Linked Incentive) Scheme's minimum investment limit should have been reduced to benefit MSME units, and a specific sum should have been set aside for MSME units from the total allocation.

"Income tax rates should have been rationalised in view of the inflationary trend," Shah continued. The GCCI also praised the extension of tax breaks for start-ups, the new SEZ Act, and the GIFT City announcements.

The budget was well received by Geeta Goradia, co-chair of FICCI in Gujarat, but she thought that increased spending in social sectors such as healthcare, education, and direct benefit schemes like MNREGA and PM Gareeb Kalyan Yojana was required. "Specific interventions are needed for incentivising R&D in sectors such as healthcare, pharma, biotech, greentech and futuristic areas like AI, Internet of Things, etc. We will continue to engage with the government on these issues," Goradia added.

The National Dairy Development Board (NDDB) in Anand applauded the reduction of alternate minimum tax for cooperatives from 18.5 percent to 15 percent, as well as the reduction in surcharge from 12% to 7% for cooperatives with an income of Rs 1 crore to Rs 10 crore. "The decision will boost development initiatives of dairy cooperatives and ensure better remuneration to millions of farmers," said Meenesh Shah, Chairman, NDDB.

The financial provisions for infrastructure, agriculture, and natural farming were largely commended by Rasna Group Chairman Priuz Khambatta. "The industry was expecting more in terms of tax breaks for the middle class and more cash transfers for rural poor that would have led to more growth in consumption. The same is missing in the budget. Having said that I am sure, India deserves this progressive budget," he stated.