The Federation of Industry and Commerce of North Eastern Region (Finer) has expressed disappointment over the Union budget, saying it doesn’t have much for the region.
The region’s leading trade body welcomed the overall budget but said it had expected new connectivity projects and an announcement on the tea sector as the industry is going through a crisis.
Finer’s former president and current member R.S. Joshi said if the tea industry’s dismal scenario continues, people will start losing jobs — hence, the need for government assistance. “The tea sector is not doing well. It needs some kind of support. You must have noticed that big corporate names in the region are not doing well. Social cost has gone up tremendously without corresponding increase in returns,” he said.
The Indian Tea Association (ITA) said imposition of 2 per cent TDS on cash withdrawal exceeding Rs 1 crore in a year from banks would be a big problem as tea garden managements are required to pay the workers in cash due to absence of adequate banking infrastructure in the gardens.
“It will compromise the liquidity of and cast an additional burden on tea estates,” an ITA statement said.
The Tea Association of India also voiced concern over the matter. “This association will seek the government’s rethinking on the subject,” a TAI statement said.
The TAI said the government’s stress on “one nation, one grid” to make power availability to states at affordable rates was significant for tea growing areas such as Barak Valley, which remain plagued by massive power shortage.
Economist and Gauhati University professor Madhurjya Prasad Bezbaruah, who was invited to a live budget analysis organised by Finer here on Friday, said, “I was not expecting state-specific policies for the Northeast but I was looking forward to something on the Act East policy since this government had stressed on it during the elections. Maybe they have something but the budget was rather silent on it. I’m also slightly disappointed on the agricultural front. Otherwise, the budget has done well.”
He added, “It’s about connectivity. I expected intervention from the government in two ways — connectivity within the region and with neighbouring countries. Connectivity within the region has improved in the last several years but there are some unfinished areas. Besides, trade in the border areas needs to be given some thought. If you keep it just as border trade, it will never flourish. This is the time to carry out reforms.”
Ashish Phookan, chairperson of the Assam state council of the Federation of Indian Chambers of Commerce and Industry (FICCI), hoped that Kaziranga and Majuli in Assam would feature in the list of 17 iconic tourist sites that the Centre has decided to develop as world class destinations.
Finer president Pabitra Buragohain said overall the budget is good.
Joshi said, “As a whole, it’s a good budget. If it’s implemented in letter and spirit, it’s going to be good for the economy. The ease of doing business is very important and that gives a boost to the economy.”