The Agriculture Sector should be accorded priority to be converted into a globalised system, encouraging farmers to export their produce, said BJP leader Subramanian Swami. Delivering the keynote address at a pre-budget analysis session held at the Indian Institute of Management Kozhikode (IIM-K) Kochi Campus on Saturday, the senior BJP leader and former Union Minister said that the budget should focus on measures to improve access of funds by Small and Medium Enterprises (SMEs).
Swami who strongly suggested enhancement of investments in proportion to GDP said that the budget should focus on measures to improve access of funds by Small and Medium Enterprises (SMEs). “I hope that the Union Budget 2016 is growth-oriented and proves its commitment to the Indian middle class by taking steps to alleviate their concerns,” he said. He suggested measures to curb corruption and enhance efficiency.The panelists at the discussion included Geojit BNP Paribas investment strategist V K Vijayakumar, financial markets and risk professional Venkatachalam Shunmugam, K Hari Prasad of Apollo Hospitals Group, UAE Exchange, India MD V George Antony and Korah & Korah Chartered Accountants managing partner George Korah. IIM Kozhikode associate professor in Economics Rudra Sensarma moderated the discussion.
V K Vijayakumar of Geojit BNP Paribas suggested fiscal consolidation even if it came at the cost of growth being capped at 7-8 percent. He was of the view that a reduction in interest rates, at a time when Federal reserve in the US was thinking of quantitative easing, would result in capital flight and hence detrimental to Indian economy.
Venkatachalam Shunmugam said there was a high probability of capital flight from emerging markets due to a reduction in investments by sovereign funds origination in oil rich economies. He also expected an easing of FDI norms and processes to attract foreign investments.Dr Hariprasad of Apollo Hospitals regretted that the Healthcare sector was neglected in all Union budgets. He expected a comprehensive PPP policy in hospitals and incentives to indigenise medical equipment. He despised the existence of luxury tax on admissions to ICU.
George Korah, recommended exemption limit on personal income tax to be increased to ` 10 lakh per annum and a super rich tax slab of 40% in addition to the existing three slabs.