The awaited presentation of the Railway Budget and the Union
Budget, preceded by the Economic Survey was done in the first
week of July.  White the Economic Survey presented a reasonably
satisfactory performance of the economy, the Union Budget
Proposals do not bolster the resurgent performance of the
industrial sector.

During last year, the industrial sector registered 6.5 per cent growth and agriculture
recorded a 9.1 per cent growth with GDP registering a commendable 8.1 per cent growth.  
In this context, the Union Budget was a mixed bag of hopes and disappointments.  
Manufacturing sector has been left to chug along at its own momentum.  The Budget,
however, did give a signal of government’s resolve to continue the reforms process.  
Postponement of introduction of VAT to April 2005, without a road map, is not too promising.
At the macro level another disappointing factor is that adequate resource allocation for
various schemes leaves much to be desired, leaving success in implementation as a
question mark. Setting up of Investment Commission is a welcome step but in the absence
of any enhanced incentives to the manufacturing sectors, any substantive increase in
domestic as well as FDI inflows might remain a pious hope.

With the drought staring at us, would the demand surge to the expected level?  Again, the
inflationary pressure seems to be mounting, a matter of concern. Likewise, the Railway
Budget had all the populist measures but failed to tackle the core issues.  Transport cost is
a core input in our competitiveness particularly for export.  Expanded railway network is
surely a competitive mode of transport.  The need is to create additional railway
infrastructure which would speed up and enhance the volume of movement of goods.  This
would enhance our cost competitiveness particularly of the export sector.  It is urged that
the Railway Minister would pay greater attention to expand and upgrade the rail network.

In the context of the recent developments there is need to have a relook to restrengthen
our federal structure which would enhance inter-State cooperation particularly in the areas
of elementary utilities.  Lack of this aspect has created in the country, pockets of self-
sufficiency and shortages particularly in matters of electricity, water and harmonization of
State taxation.

To take up region specific issues of economic importance, the Chamber organized seminars
and conferences in Punjab and Himachal Pradesh in the last one month.  We are optimistic
of realizing the due results of these meets in the coming months in the form of better policy
initiatives by the respective state governments to address the problems being faced by
various industries in the states.  The state governments have been urged to ensure
balanced regional development in the States.  The incentives offered to some of special
category States should be channelized so that imbalance is restrained.

Our Chamber would be completing 100 years of useful services to the community.  This
would be a unique landmark occasion.  The Centenary Celebrations Committee, constituted
for the purpose of organizing celebrations in a befitting manner worthy of Chamber’s
premier stature, have been drawn up.  Your cooperation and support for successful
celebrations, I am sure, would be forthcoming in ample measures.

(Ravi Wig)
President