Visakhapatnam: Confederation of Indian Industry (CII) has described the Union Budget proposals as 'progressive and forward-looking' and welcomed the announcement to support development of Amaravati by facilitating funding of Rs15,000 crore, a special package for backward areas and fulfilling the promise made for completion of Polavaram project.

The budget 2024-25, presented by Finance Minister Nirmala Sitharaman stands unique from the previous budgets for its focus on skill development, urban infrastructure, employment generation and housing projects, said Neeraj Sarda, past chairman, CII Andhra Pradesh.

CII members gathered for a live-viewing session of the Union Budget here and later discussed the impact of the budget on the industry. Highlighting the budgetary announcement of Rs 15,000 crore assistance towards the capital city through multilateral development agencies, is a welcoming move, Sarda said. He also emphasised the importance of incentives for R&D to achieve technological self-reliance.

Noting that the budget's favourable stance towards investors and AP, Grandhi Rajesh, Chairman, CII Visakhapatnam has appreciated the renewed commitment to the AP State Reorganisation Act, which had been overlooked in previous budgets. He also mentioned the commitment to complete the long-overdue Polavaram Project, the allocation for the Visakhapatnam-Chennai and Hyderabad-Bangalore industrial corridors and the overall infrastructure budget of Rs 11.11 lakh crore, which he said will accelerate economic growth.

The increase in the upper loan limit under the Mudra scheme for MSMEs is expected to boost investments in the startup ecosystem, according to Rajesh. He also highlighted the significance of reducing import duties on gold from 15 per cent to 6 per cent, which could boost retail demand and help curtail smuggling. He noted the importance of incentives for employers and employees in creating employment opportunities.

The government's incentivisation of job creation in the manufacturing sector is poised to impact 35 lakh youths. "We anticipate that these newly skilled workers, armed with disposable income, will help in driving growth," said Rajesh.

He said the proposed tax reduction for overseas companies from 40 per cent to 35 per cent will boost FDIs making India a more attractive destination for overseas investments, help to compete with other emerging markets and foster a more business-friendly environment.

G Sambasiva Rao, past chairman, CII Visakhapatnam, appreciated the budget's focus on MSMEs, which are considered the backbone of the country’s economy. He also welcomed the reduction in customs duties for various goods and services, despite the lack of a corporate tax deduction and focus on raising seafood exports.

Abhishek Gupta, Executive Director, Sahuwala Cylinders, lauded the budget's gender inclusivity, emphasising its focus on employment, housing, and lowering duties for properties purchased by women. He also appreciated the announcement of plug-and-play infrastructure, which will support industry growth.

RVS Rudra Raju, past chairman, CII, AP, stressed the importance of the budget's focus on marine exports. The announcement of funding one node under the Visakhapatnam-Chennai Industrial Corridor and another under the Hyderabadi-Bangalore Corridor are anticipated to improve road connectivity, water, and drainage systems. The National Infrastructure Pipeline is seen as a key driver for the manufacturing sector's growth, he said.

Anil Bezawada, convenor of CII Visakhapatnam's Finance & Taxation Committee, lauded the government's plan to simplify the Income Tax Act of 1961, which he believes will facilitate business operations. This budget's focus on income tax dispute resolutions will ease business processes both nationally as well as in the state, he noted. Dr E Sankara Rao, convenor, ESG Panel, CII Visakhapatnam and others spoke.