The Federation of Industry and Commerce of North Eastern Region (FINER) has hailed the Union budget 2019-20 saying it is expected to rejuvenate the economy, generate employment and attract investments.

The budget proposals focus on infrastructure and connectivity in terms of railways, roadways and waterways which will not only boost economic activity but will give a much-needed impetus to generating employment in the country, the FINER said in a statement.

The government announced that it will invest Rs 100 lakh crore in the next five years in infrastructure will enhance investor sentiment, said the statement.

Emphasising on the Act East Policy will augment infrastructure and connectivity of the North East region with the ASEAN countries.

The banking sector being helped with a Rs 70,000 crore recapitalisation fund will directly impact availability of funds to provide credit facility to industry, it said.

Simplification of labour laws will further contribute enormously to the "ease of doing business" in the country, the FINER said.

Income tax deduction on interest on affordable housing being increased from Rs two lakh to Rs 3.5 lakh per annum will have a major social impact on the middle class, it added.

However, the FINER felt that imposition of excise duty and cess on petrol and diesel could have a cascading impact on travel and transport cost which possibly needs to be reviewed.