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The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) with
knowledge partner of Ernst and Young has conducted a meeting on Union Budget 2011
impact on Industry and Trade on 1stMarch, 2011 at 4:30pm at FAPCCI.

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, President, FAPCCI in his welcome address stated that there was a
robust credit flow in 2010-2011, but a marginal decline in 2011 ± 2012 due to steady increase
in lending rates. Priority sector lending has received a boost as their will be lower lending
rates to borrowers. Interest on Agriculture loans, subvention upto 3% will increase
availability of funds at cheaper rates.


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      Chairman, Direct Taxes committee of FAPCCI stated that
the Union Budget has great impact on the Economic Growth of the Country which in turn
will have impact of Trade, Commerce, Industry, Banking, Capital Markets and other sectors
of the Economy. So the stakeholders are interested to analyse the impact of such budget on
the economy and various sectors.

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 Director General, Administrative Staff College of India, in his address stated
that the budget for 2011-12 has been a good balancing act by the FM, as he was facing the
daunting task of stimulating the economy, keeping the inflationary expectations under check
and at the same time boosting public finances.
 
The budget was relatively silent on the big-bang reform process, especially on FDI in retail
and insurance and reduction in government subsidies. The fiscal deficit at 4.6% might look
attractive, but getting into the details reveal that the budgeted subsidy amount seems to be
abysmally low in light of the fact that fuel, food and fertiliser inflation remains elevated on
account of soaring global prices.

He further stated that the budget has set the ground for rolling out of the Goods and Service
Tax (GST) that shows the commitment of the government.


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 , President, Association of National Stock Exchange Member in his
address stated that the budget is positive for equity as well as bond markets. Mutual Funds
being allowed to raise money in equities from foreign investors directly are a big plus. This
will allow investors across the globe to invest in Indian mutual funds and help bring money
into the economy. The Budget 2011-12, though it did not have many significant direct
measures for the Capital Goods sector, it sent a positive signal with regards to the continued
impetus being provided to the Infrastructure and Power Sector of the country.

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     Partner, Ernst & Young Pvt. Ltd., and ï
 

Chartered
Accountant had explained the implications of the Union Budget 2011 on Direct Taxes


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   Sr. Advisor, Deloitte Touche Tohmatsu India Pvt. Ltd., and ï
 

  Sr. Advisor-Tax & Regulatory Services, Ernst & Young Pvt. Ltd. had explained the
in-depth intricacies of the Union Budget on Indirect Taxes.
Meeting ended with a vote of thanks by ï
 

 , Sr. Vice President, FAPCCI, ï

£  , Vice President, FAPCCI also attended the meeting.
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