Less Opportunity Used For Tax Cuts In Budget: Official - June 09, 2009

The Finance Ministry has signaled the industry not to expect any major fiscal sops in the Union Budget to be presented on July 3 by the Finance Minister and has limited headroom for giveaways due to the economic downturn.

In pre-Budget consultations, senior officials of the Finance Ministry conveyed the disappointment of the government to industry for not passing the benefits excise and service tax cuts to the consumers, which was announced in December and January, a chamber official said.

However, earlier this month, the Revenue Secretary P V Bhide had convened separate meetings with industry bodies that include CII as well as FICCI and Assocham.

While, the three chambers presented the wish lists to the Finance Ministry, they were told that the new Finance Minister would not have much headroom for any more fiscal incentives. The fiscal deficit for 2009-10 is pegged at Rs 3,32,835 crore, 5.5 per cent of the GDP.

The direct tax kitty dipped to Rs 3.38 lakh crore in 2008-09 as against the truncated target of Rs 3.45 lakh crore.

The government had slashed excise duty of four per cent and service tax of two per cent across-the-board in the two stimulus packages to limit the impact of global downturn on the economy.

UPA Prepares Position In Favor Of Labour Reforms - May 28, 2009

As the Union budget is scheduled in the fist week of July, the Planning Commission is looking at the need for labour reform which could help unshackle the growth for the industry. There will be revision of Industrial Disputes Act, 1947, Contract Labour Act, 1970 and Trade Union Act, 1926 as a part of change. However, the proposed changes to be made to these laws in consultation with industry as well as trade unions.

The changed labour laws will meet the industry''s long standing demand to hire and fire workers in sync with business cycles. Then the permanent employees can be hired as contract labour while the weekly working hours will be increased to 60 from 48.

Industry leaders say that since services now account for nearly 55 per cent of India''s economy, therefore it is essential for a change in laws. The Chief Economic Advisor Arvind Virmani had submitted a report to the government three years ago, recommending the changes required in the labour laws.

The first steps of changes in labour laws are being taken. Andhra Pradesh government has already amended the contract labour law and moreover has relaxed the employment of contract workers. The labour reforms are also part of the wishlist of industry association FICCI. Besides this, CII, India''s largest industry association Confrederation of Indian Industry, has also demanded relaxation in labour laws.

Less Room Used For Strain Cuts Into Financial Statement: Official - May 23, 2009

The Finance Ministry has told industry to not to expect any major fiscal sops in the Budget to be presented by the new UPA government. In pre-Budget consultations, senior Finance Ministry officials conveyed the government''s disappointment to industry for not passing to consumers the benefit of excise and service tax cuts announced in December and January, a chamber official said.

Revenue Secretary P V Bhide had convened separate meetings with industry bodies - CII, FICCI and Assocham - earlier this month.

While, the three chambers presented wish lists to the Finance Ministry, they were told that new Finance Minister would not have much headroom for any more fiscal incentives which the industry wants for boosting the economic activity.

The fiscal deficit for 2009-10 is pegged at Rs 3,32,835 crore, 5.5 per cent of the GDP. The revenue was impacted in the last fiscal as industrial production fell.

Need Third Package To Boost Consumer Confidence - Feb 13, 2009

FICCI on Feb 12 demanded a third stimulus package for the economy claiming that the previous two have not produced the desired result. Rajeev Chandrasekhar, FICCI President said that the next stimulus package should be aimed at giving a boost to the demand in the economy.

"The two stimulus packages announced have not worked. One more stimulus package is required. The third stimulus package should be aimed at restoring consumer confidence," he told reporters.

The government in the first package, which was announced on December 7 had brought down the CENVAT rate by 4 per cent in all sectors except in petroleum. Along with this, an additional expenditure plan of up to Rs 20,000 crore was also announced. Besides this, the government had authorized India Infrastructure Finance Company Ltd (IIFCL) to raise Rs 10,000 crore through tax-free bonds by March 2009 and said it would be permitted to raise further resources.

On the other hand, te government in the second package, which was announced on January 2 that includes higher public spending and easier credit especially for exports, housing and small industries, and special attention was paid to auto and infrastructure sectors.

Indian Companies Create Thirty Thousand Jobs In US - July 7, 2008

According to USIBC and FICCI, Indian employers and their American workers contribute billions of dollars to federal, state and local coffers by way of wages, corporate taxes, payroll taxes and income taxes. Tatas has been rated as the largest Indian companies. IN A telling demonstration of reverse outsourcing, 12 Indian companies have invested billions of dollars in the United States (US), creating and retaining more than 30,000 American jobs. According to an assessment by the US India Business Council (USIBC) and Federation of Indian Chambers of Commerce and Industry (FICCI), Indian employers and their American workers contribute billions of dollars to federal, state and local coffers by way of wages, corporate taxes, payroll taxes and income taxes.

India May Miss Export Growth Target - June 16, 2008

India is likely to miss the export target of $200 billion for the current fiscal owing to slowdown in the US and European markets, restriction on shipments of many commodities and higher fuel prices, a survey by industry body FICCI said. The study said the rise in oil prices is likely to get reflected in exports as well as the higher fuel prices has led to a hike in ocean freight rates, prompting importers to source from closer production units.

Foreign buyers are showing preference to source from closer production points to save on the freight costs. If this trend gains momentum then domestic exporters would have to reorient their market strategies.The buyers in the US are considering increasingly sourcing from the markets of Canada, Mexico and other Latin American countries due to export restrictions in India.Indian has banned exports of pulses, edible oil and non-basmati rice, besides it has hiked export duty on long steel products to 15 per cent.

FICCI Has Blamed The RBI''s Tight Monetary Policy

The industrial chamber FICCI has blamed the RBI''s tight monetary policy and rise in interest rates for slowdown in industrial production. The tight monetary policy stance by Reserve Bank of India (RBI) has led to a decline in demand in the economy. This slowdown in demand has in turn affected industrial growth, said Federation of Indian Chambers for Commerce and Industry (FICCI) in a study on slowdown in industrial growth and its policy implications. It also said that apart from rising interest rates, the appreciation of the rupee has also taken a toll on industrial performance.

With industrial growth slowing down to a dismal 3 per cent in March 2008 against 14.8 per cent in the same month last year, FICCI suggested to RBI for reducing the interest rates to arrest the industrial slowdown. The downward revision in the interest rates would help in stimulating demand in the economy and ease the cost pressure on manufacturing sector and would lead to a sustainable solution through expansion of capacity that in turn would ease the supply constraint, the chamber said.

FICCI, CII Asks For Rate Cut

New Delhi: Taking a cue from the US Federal Reserve which cut the interest rates by 75 basis points, the Fedearation of Indian Chamber of Commerce and Industry and the Confederation of Indian Industry have asked the Reserve Bank of India to signal interest rates cuts by 25-50 basis points. With inflation under control and balanced around three per cent, it is the right time for the RBI to cut repo and reverse repo rates that are currently at 7.75 per cent and six per cent respectively by 25-50 basis points to cover the relative competitive disadvantage India has on the macro economic fundamentals.