Monday, July 6, 2009

Increased allocations growth-oriented, says industry body

The All India Association of Industries (AIAI) has welcomed the hikes in allocations for infrastructure, agriculture and small and medium enterprises (SMEs) for exports in the fiscal 2009-10 budget announced Monday, and termed the move as "growth-oriented".

According to AIAI president Vijay Kalantri, the increased allocation of Rs.5,000 crore for railways, 23 percent for national highways, higher allocation for gas grid, Rs.7,000 crore for rural electrification and 87 percent increase in the Jawaharlal Nehru National Urban Renewal Mission would generate employment and serve as a growth stimulus.

"The increase in allocation of 75 percent towards irrigation sector will boost the agro-industries sector," Kalantri said in a statement after Finance Minister Pranab Mukherjee presented the union budget for 2009-10 in the Lok Sabha Monday.

"AIAI also welcomes the hike in allocation to Market Development Scheme and the Rs.4,000 crore special fund to be operated by banks for SMEs to revive from the recessionary trends," he added.

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