Budget 2007 presented by the finance minister, P Chidambram
today, as commendable for having exceeded expectations
in terms of rural development, education and agriculture
, Moon B. Shin, managing director, LG Electronics India,
says it is commendable that the economy has seen a GDP
growth of over 9 per cent, while providing an impetus
to inflation control.
However, the budget 2007 is not very favourable to domestic
industry and trade. Also increase in education cess
from 2 per cent to 3 per cent will prove to be an additional
burden to the common man and corporate alike. Also,
the budget has not provided any incentive for exports,
acting as a hurdle to India emerging as an export hub.
No sops have been announced to curtail the effect of
the inverted duty structure.
Specific to LG India, the tax holiday extension for
in-house research and development facilities was an
extremely welcome step, since we have devoted substantial
investments in research and development in India.
Positives aspects of Budget 2007: