'Budget should facilitate velocity of business'

N.K. Goyal

Budget expectations have become a routine exercise whereby people expect the moon without realizing what is feasible in the Government set up. I think the United Progressive Alliance Government has provided excellent opportunity for the industry to grow by way of congenial atmosphere and enabling factors. We should realize that any federal government needs taxes and revenues and there is a limit to which we can expect reduction.

Dayanidhi Maran, minister for Communications and IT, has proved that given a helping hand, manufacturing can grow leaps and bounds. A large number of units coming up in Chennai and other parts of India are proof thereof.

I think what is now required is emphasis on eco factors, infrastructure, ports, air cargo, airports modernization, steps in dealing with industry imports, production and exports to facilitate the velocity of business. As it is the State and Central Government and division of responsibilities have certain inherited issues. What is needed now is a policy whereby goods are imported and cleared, say within one hour; hassle /octroi/ way inspection free transportation unaffected from local strikes, bottlenecks, a freedom to industry to employ labour as and when required.

Clearances from factories, again -- within an hour, bare minimum inspector raj, which we are not able to solve in spite of several sincere intentions. Can we assure electricity to our industry?

Above all, can we have a sustained government policy towards industry? We saw the other day active promotion of SEZs, several commitments and now suddenly put on hold. We promote SEZs and then cry for loss of revenue. Is this sustained policy? We need active implementation of our declared policy. There should not be any disconnect within the government in implementation. While we know taxes and duties are not to be exported, but are we willing to really do so? We desire to sign FTA but are we willing to provide internal duties/taxes as that of FTA country? The targets for industrialization/exports/production are set by Central Government whereas actually the production comes from States. What is needed is a constitutional guarantee from all the States also to achieve the targets.

Let Budget 2007-`08 be devoted to velocity of business!

(The author is president, Indian Manufacturing Foundation)

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