Click to play videoNew Delhi: The Government announced a fiscal stimulus package to boost the economy. But Indian industry had been anticipating a much bigger package and is unhappy.
The Governments stimulus package comes as great news to those looking to take a home loan between 5-20 lakh rupees.
Interest rates will be cheaper and money will be readily available with special schemes to be announced by Public Sector banks.
The industry stalwarts even call the offer an eyewash. The government will be spending an additional 20,000 crore rupees to give a boost to the slowing economy. Real estate developers too are not happy and say these measures are an eye wash.
Chairman, Parsvnath Developers said, "I am completely disappointed from the fiscal package. We were expecting much more. The package gives only an eye wash. They are talking only upto 5-20 (Housing) lakh but what is available in this country? Input costs and tax are too big at this point of time.
Exporters too are feeling let down with sagging demands in the West.
From 200 billion dollars, the export target it is likely to be at just 185 billion dollars. The demands could now be taken up in the future.
Deputy Chairman of Planning commission, Al Singh said, "This is not necessarily the only thing that we are going to do. It has to be in case that we have to watch the situation closely and both on the monetary and on the otherside all relevant authorities have taken the view that we won't hesitate to take additional action if necessary."
Auto sector had expected a cut in sales tax.
But they are happy for now with a 4 per cent cut in central value added tax (Cenvat). Auto makers plan to pass this on to consumers.
The Government stands to lose over 8000 crore rupees from the cut in cenvat.
Apart from this, the industry says there's little to cheer. So that leaves room for more stimulus in the coming days.
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