Budget 2011: Pune Inc will welcome steps boosting growth

Pune, engrossed in the cricket World Cup on Sunday, will be glued to TV sets on Monday for a different reason altogether. As Union finance minister Pranab Mukherjee, once again steps up to present Budget 2011, Pune Inc will listen intently to his every word.

Topping the wish list of head honchos from the manufacturing, trade and services sectors in Pune is the implementing the direct tax code (DTC), extension of Software Technology Park of India (STPI) scheme, speedy implementation of goods and services tax (GST), investment in skill training and higher outlay for infrastructure.

“Speedy implementation of the GST is very important. The tax reform is essential to bring about the next wave of growth, as this will change the business environment at the state level. Excise, sales tax and octroi, all need to be subsumed within the value added system of GST,” said Abhay Firodia, president of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) and chairman of Force Motors.

Chandrajit Banerjee, director general of the Confederation of Indian Industries (CII), said the policy instruments available to the government in the form of direct taxes can go a long way in overcoming the challenges facing the economy. “The urgent need is to boost investments in agriculture, infrastructure and industrial sectors. Emerging challenges such as rising input costs and interest rates amid still subdued global demand will have to be dealt with,” he said.

The software industry is expected to grow by 25%. It hopes that the budget addresses the supply side issues. “For the long term, improving the supply situation by investing a lot in education across the various layers will help not just the software industry but every industry in the country. So, significant investments in infrastructure of education need to be made, including opening up the sector,” said Ravi Pandit, chairman and group CEO of KPIT Cummins Infosystems Ltd.

Deven Doshi, president of the Association of Indian Forging Industry, said there should be a ban on the export of high-grade iron ore. Transparency needs to be enforced to keep the continuously increasing and spiralling steel prices in check.

C Vinod Hayagriv, chairman of the All-India Gems and Jewellery Trade Federation said, “India being the second highest consumer of gold, it is very important we look at minimising irregularities in this sector in order to maximise profit and stabilise this industry,” he said.

Abhijeet Gholap, CEO of Optra Systems said, “The IT industry is eagerly awaiting the government’s proposals in the budget in view of continued STPI benefits at least to small and mid-size companies.”