Kerala Business Leaders Hail Budget for Startups, Gold Duty Cut

Thiruvananthapuram, Jul 23 (PTI) Kerala's industry leaders hailed the budget for abolishing angel tax for startups, slashing import duty on gold and for initiatives to boost MSMEs and entrepreneurship, but said it should have also focussed on immediate concerns, retail/small business, and tourism and hospitality sector.

Well known businessman and Chairman of Lulu Group Yusuffali MA appreciated the budget's emphasis on boosting entrepreneurship and inward investments.

In a statement, he said said that along with economic and youth development, the budget has given enhanced emphasis to women and farmers.

Adeeb Ahamed, a UAE-based billionaire businessman of Indian origin from Kerala and the managing director of LuLu Financial Holdings, commended the focus on promoting entrepreneurship, skilling and MSMEs, reduction in corporate tax for foreign companies and abolishment of angel tax for startups, but said that "there could have been more incentives for the tourism and hospitality industry".



"One could always view it as a budget that could have done more in addressing immediate concerns," he said in a statement.



"Overall, while this budget is a balanced one and will stand the country in good stead over the long run, but one could always argue that there are missed opportunities," he said.

Baby George, CEO Joyalukkas Group, welcomed the budget decision to cut import duty on gold from 15 per cent to 6 per cent and said it will definitely boost the retail demand for the precious metal.



"The decision will lead to lower prices of gold at the retail end, fuelling demand for ornaments and gold articles," he said.

Pointing to the shortcomings of the budget, S S Manoj, National Secretary of Confederation of All India Traders (CAIT) and state President of Kerala Vyapari Vyavasayi Ekopana Samithi, said there were no visible or tangible gains for the retail or small business sector in the union budget.



"The only thing worth mentioning is that the Mudra loan has been increased from Rs 10 lakh to 20 lakh," he said in a statement.



He said that after the agriculture sector, the retail trade sector was the most relied upon, directly and indirectly, by a vast majority of people for employment, and the "neglect" towards it in the budget continues.

P R Seshadri, Managing Director and CEO of South Indian Bank, however, said many impactful measures were announced in the union budget which has enough incentives "to spur India's youth, farmers and business class to seek fulfilment of their aspirations".



"It will allow the economy to move ahead on its growth trajectory," he said.

Similarly, K Paul Thomas, MD and CEO of ESAF Small Finance Bank, said the budget has laid the path for the future economic growth of the nation, while Venkatraman Venkateswaran, CFO of Federal Bank, said the budget has struck a fine balance between political imperatives and fiscal prudence.