Budget reaction 2013: Association of Indian Forging Industry
The Budget proposals of the Finance Minister for 2013-14 do not seem to address the slow-down in the manufacturing industry more specifically the Auto-sector on which the forging industry depends to a large extent. The investment allowance of 15 per cent announced by the finance minister will help only the larger industries with outlays of over Rs. 100 Crores. The majority of the members of the AIFI who are SMEs will not be able to avail of this. The finance minister should reconsider and extend it to the entire industry to give the much needed stimulus to manufacturing.
The welcome measures for the SME Sector are the increase in SIDBI Fund from Rs. 5,000 crore to Rs. 10,000 crore and the Rs. 500 crores credit guarantee scheme besides sops for loans up to Rs. 25 lakhs. He has also set apart Rs. 1000 crores for rewarding candidates who get skilled and duly certified. Another positive move was the proposal to shift oil exploration projects to revenue-sharing from the existing profit-sharing scheme - a welcome measure to control gas and oil prices. This should be extended to mining of all minerals and ores also.
Setting up of special funds for urban housing, PSU Bank capitalisation and Women's Bank and Protection Fund and Green Energy Fund are welcome measures. Substantial increase (16 per cent) in outlay on education and increased outlays on science and technology, space science and R&D besides aerospace sectors are most welcome.
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