CHANDIGARH, June 1: Industry reaction to the Finance Minister Yashwant Sinha's budgetary proposals for 1998-99 ranged from jubiliation to disillusionment. While the small-scale sector here has hailed the Union Budget for its accent on growth of the manufacturing industry, large and medium corporates have expressed disappointment at the lack of measures to kickstart the economy.Expressing satisfaction at the overall budgetary proposals, the PHD Chamber of Commerce and Industry (PHDCCI) said that it would give the much-needed impetus to domestic industry. Former president of PHDCCI, R.K.Saboo, and vice-president, Ashok Khanna, interpreted the budgetary proposals as balanced and pragmatic which had not been witnessed in recent years.They listed some of its positive features as doubling the working capital limit for the small scale sector to Rs 4 crore, incentives offered to attract investment from Non-Resident Indians after the imposition of sanctions by the US in the wake of nuclear blasts, new schemes to encourage honest tax payers, emphasis on privatisation and infrastructure building, raise in compensation to workers of public sector units to be closed and stress on welfare schemes like education.The former PHDCCI president said the privatisation of insurance sector will send the right message across the globe about further liberalisation of the Indian economy. The extension of tax holiday scheme in backward districts upto the year 2000 would particularly benefit Himachal Pradesh, Bargodia said.However, Indereshwar Singh Paul, chairman of CII (Chandigarh Chapter) did seem too impressed with the Finance Minister's calculations. Describing the budget as ``inflationary'' in view of the high fiscal deficit of 5.6 per cent, he said the Finance Minister had pegged the deficit at about 4.5 per cent in 1997-98 but it actually turned out to be much more. ``If it is being pegged at 5.6 per cent this time, nobody knows what it will be at the end of the current financial year,'' he added.Paul also expressed disillusionment with the lack of any measures to increase exports, improve foreign direct investment (FDI) and industrial growth. The half-hearted bid to throw open the insurance sector will not bring in any sizeable inflows, he added. However, he appreciated the budgetary proposals related to education, excise exemption in case of small scale industry and increased in budgetary provision for infrastructure.D.L.Bijlani, president of Magnus Engineering Pvt Ltd, appreciated the aggressive measures to re-energise the stock markets and operning of the insurance sector to the private sector Indian companies. ``The move is the single most significant achievement of the Union Budget,'' he added.However, he sought reversal of the decisions to increase custom duty and extension of the stock option scheme to the entire Indian industry. The government must also shed its over-emphasis on VRS. Instead, it should concentrate on retraining of workmen, he added.Agreeing with Bijlani, Ishan Mehta, general manager of Eicher Demm, said the budget lacked any direction and measures for industrial revival and growth in exports. The decision to protect the domestic industry through imposition of customs duty of 8 per cent will affect imports and efficiency, he added.He sought delicensing of the sugar industry. Similarly, Sanjiv Singh, director (marketing), Gilard Electronic Pvt Ltdm felt the proposal to levy 8 per cent custom duty will prove to be inflationary.
