The trade and industry, particularly MSME and textile industry, in the region welcomed the union budget presented by Finance Minister Arun Jaitley today, terming it as growth-oriented and with long-term perspective.

Almost all the associations and bodies representing commerce and industry welcomed the introduction of Trade Infrastructure Export Scheme with an allocation of Rs. 3.96 lakh crore, which will help Indian exporters become globally competitive.

In his reaction, FIEO Southern Regional Chairman A Shaktivel welcomed the budget saying that more focus on government investment on infrastructure was a move in the right direction as private investment was showing slow growth. Moreover, this would help exporters, who at present are forced to incur additional expenditure of more than seven per cent of their exports due to poor infrastructure.

Southern India Mills’ Association Chairman M Senthilkumar welcomed and termed it as a growth-oriented budget enabling all the manufacturing sectors to grow at a faster rate and enabling the people of the nation to improve their standard of living.

The objective of doubling farmers’ income, housing for one crore rural Indians, skilling of youth by establishing 100 India International Skill Centres, development of infrastructure to provide end-to-end solutions by integrating road, rail and ship would greatly benefit the textile industry that is spread across the nation, he told reporters here.

The other benefits extended, such as five per cent reduction in tax for MSME industrial units, additional allocation to banks for NPA accounts, cashless transaction, labour reforms and relaxation of FDI norms by abolishing the Foreign Investment Promotion Board (FIPB), would also benefit the textile industry, he said.

The cluster approach for contract farming would greatly benefit the predominantly cotton based textile industry, Senthilkumar said.

Talking to reporters, the office bearers of the local chapter of the Indian Chamber of Commerce and Industry welcomed the proposal, particularly the Rs. 3.94 crore infrastructure development scheme, which will help boost the export front.

Past President of the Chamber D Nandakumar said that the one crore affordable housing scheme in the rural sector will help boost the construction sector and also other related industries.

Tirupur Exporters Association President Raja M Shanmugham in a statement said that the budget was an encouragement to clusters like Tirupur, as more than 80 per cent of MSMEs were located here; he also welcomed the reduction of Income Tax for MSMEs from 30 to 25 per cent.

The announcement on the reduction of bank lending rates as an effect of demonetisation would be an impetus to Tirupur as it will help to increase the competitiveness of exporting units, he said.

He also said that the profit exemption announced for the construction of 60 square metre will encourage more promoters to enter the house construction business.