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'The minister has taken adequate steps'

R V Kanoria

The finance minister should be complimented for a positive Budget. I am a firm believer in competitiveness. The minister has recognised that industry is burdened with high costs and has taken adequate steps.

He has taken steps to recognise the user-pay concept and elimination of subsidies, which I hope will translate well.

He has taken care to send strong signals to the capital market. The across-the-board reduction of 1.5 in small savings will be a forerunner to reduction in interest rates.

In the labour sector, his proposal for an amendment in the Industrial Disputes Act and in Act V will help the industry to even look at hiring temporarily.

He has recognised that the stock markets require a boost.

In textiles, we have ultimately woken to the reality of a phase-out of the multi-fibre agreement under the World Trade Organisation. The package is forward-looking.

He is preparing the textile sector for competition, by permitting modernisation with measures like lowering custom duty. He has set a road map by reducing import tariffs and the three-year peak tariff has been reduced to 20 per cent. On the other hand, he also has reforms to enable us to meet the tariff structure.

Though the removal of surcharge is welcome, tax rates have crept back to a higher level.

R V Kanoria is vice-president, FICCI

Budget 2001

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