Reacting to Finance Minister P Chidambaram's Budget proposals on Monday, Ajay Shriram, managing director of Shriram Industries, said:
"The tax and duty cuts are welcome because for Indian industry to be competitive, we need lower costs. I also welcome the thrust on the agriculture sector that still covers 65-70 per cent of our population. As long as that sector is ignored, growth will never be complete.
"Our industries are involved in manufacturing sugar and in rural retailing. The good thing about this Budget is the planned thrust on water management, providing micro-finance to the farmers to help them improve productivity.
"What I would have wished for is increased public-private partnerships to help improve the profitability of the farmers of India. For instance, at our two sugar factories, we employ 125,000 farmers. We would have been pleased if we were allowed to provide micro-credit to the farmers; this would help the farmers in times of debt and improve their productivity. Thus, while the planned public-private partnerships are welcome, we need more of them.
"I would like to point out that the sugar industry has gone through a bad patch in recent times even though sugarcane production remained high. The sugar industry directly impacts upon the rural economy. Thus it is important to look at the long-term aspect of such industries."
