Budget good, but more GST reforms expected: CII

CII-Vijayawada zone chairman D.V. Ravindranath addressing the media on the Union Budget 2025-26 in Vijayawada on Saturday.
| Photo Credit: G.N. RAO

The overall Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on Saturday (February 1), is a comprehensive and forward-looking plan, but expectations with regard to GST reforms for the industrial sector were not met, felt members of the Confederation of Indian Industry (CII-Andhra Pradesh).

Addressing media persons after organising a live viewing session of the Budget at Hotel Fortune Murali Park in Vijayawada, CII-A.P. chairman V. Murali Krishna commended the Budget as being progressive.

It was seconded by Vijayawada zone chairman D.V. Ravindranath, who said the enhanced credit guarantee cover and customised credit cards for micro-enterprises are crucial for the growth of MSMEs.

However, some felt that more could have been done for the sector. Former CII-A.P. chairman D. Ramakrishna said issues such as youth unemployment should have been addressed in the Budget.

“Many are losing jobs because of advancements in technology. The curriculum in educational institutes need to be transformed to prepare a student for tomorrow’s challenges. We are not sure if the steps laid out in the Budget will address these,” he said.

In the agricultural sector, the Prime Minister Dhan Bhanya Krishi Yojana and the Rural Prosperity and Resilience Programme are good initiatives, said CII-A.P. former chairman M. Lakshmi Prasad, adding that the decision to set up a gene bank to conserve 10 lakh germplasm lines is a much-needed announcement.

“But, we expected that the import duty on pollution control machinery would be reduced. Currently, it is 28% and more. We import it for the sake of a cleaner environment. There should be no import duty on the machinery,” said Mr. Lakshmi Prasad. He added that the 18% GST on medical insurance and tax on pension also should have been removed.