Andhra Chambers' mixed response to Union Budget

Vijayawada: Andhra Chamber of Commerce and Industry expressed mixed reaction on the Union budget presented in the Lok Sabha on Tuesday.

The Andhra Chamber said the budget is totally disappointing for Andhra Pradesh as there was no mention of railway zone, industrial corridors and coastal economic zone as part of Sagarmala.

The Chamber president Potluri Bhaskara Rao said there is no announcement to address the State's deficit finance, funding for Polavaram project, development of backward districts and no allocation of budget for premier institutions in the state. He said the budget is a bit disappointing as the government did not make any industry-specific announcements for textiles, food processing, agriculture, auto components, transport and tourism sector for Andhra Pradesh.

Bhaskara Rao said something positive for Andhra Pradesh is the announcement of river linking of Godavari-Krishna and Krishna-Penna projects, allocation of Rs 1 lakh crore to assist the States in catalysing overall investments in the economy.

Bhaskara Rao said the Andhra Chambers welcome the extension of ECLGS scheme till March 2023. He felt this would support business growth for MSMEs. He said, "AP Chambers welcomes the second phase of Ease of doing Business (EodB) reforms announced by the Finance Minister."

He said another positive announcement is the additional allocation of Rs 19,500 crore towards the solar production-linked incentive (PLI) scheme, which ultimately may bring down solar power costs. AP Chambers welcomes the increase in the outlay for capital expenditure by 35.4 per cent from 5.54 lakh crore to 7.50 lakh crore in 2022-23. The Chambers also welcomes the announcement of green bonds and the auction of 5G spectrum in 2022-23. The replacement of SEZ Act with new legislation for the development of enterprise and hubs will enhance the competitiveness of the industry and allow it to grow at a global level.

Referring to national policy, Bhaskara Rao said the government has also not announced any measures for driving the economic growth based on consumption, there was no announcement of income tax relief for tax-payers or the elimination of capital gains tax that were widely anticipated. No specific measures were announced to improve the purchasing power of the citizens. Overall, this budget focuses on long-term approach with reforms and driving growth through increase in infrastructure spending, structural reforms and integrated development.

Rs 20,000 crore to be allotted for developing multi-modal connectivity through expansion of national highways network to 25,000 km, 4 multi-modal logistics parks, 100 PM Gati Shakti cargo terminals will improve logistics facilities and reduce logistics costs for the industry, he opined.