Reforms Part II set rolling
It appears to be a down-to-earth budget and it now sets the secondgeneration reforms in motion after completing a decade of implementation. Ifeel that Mr Yashwant Sinha has presented a reasonably good budget.I am glad that at last the agriculture sector is getting some impetus.The sector will be particularly encouraged by his attempts to furtherimprove the credit flow to farmers through banks.
Enlarging the base of Kissan Credit Cards and the innovative provision forpersonal insurance package through them will greatly benefit the farmers.
The finance minister has rightly identified the need to strengthen thefacilities in rural areas.
The move to give more autonomy to states in procurement and distribution offood grains and revamping ECA will also be greatly welcomed.
By announcing the group-based concession scheme for urea, instead of thepresent unit-based retention pricing scheme, the finance minister has takenthe first step towards total de-control of urea. The fast development ofinfrastructure is closely linked to the very success of economic reforms.
The finance minister has provided a good deal of hope to the industry withMr Sinha's promises on accelerated power development, integrated ruraldevelopment, telecom, port and air facilities.
It is good that the weighted average reduction of 150 per cent given toin-house R&D is extended to biotechnology/ clinical trials. etc, which willalso open up fresh commercial opportunities.
(A C Muthiah is chairman, SPIC group)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
