It is a pro-growth, good budget with many initiatives for micro, small and medium enterprises (MSMEs) that also will indirectly benefit cement and steel sectors with its focus on housing sector, CII Telangana chairman D.Raju said on Friday.

The proposal extending the lower, 25% corporate tax rate to firms with a turnover of up to ₹400 crore – it is now for those with a turnover up to ₹250 crore – is welcome. With the additional profits left with them, the companies “can invest on new production capacities and create (more) jobs,” he said after a budget viewing session organised by the Confederation of Indian Industry (CII) here.

On the corporate tax rate, Finance Minister Nirmala Sitharaman, in the Budget speech, said the move to make applicable the lower rate slab to firms with a turnover of up to ₹400 crore will cover 99.3% of the companies.

Now only 0.7% of companies will remain outside this rate, she said.

The Federation of Telangana Chambers of Commerce and Industry (FTCCI) president Arun Luharuka also echoed similar views. The industry, he said, was happy with the 25% corporate tax rate made applicable to more companies, something that would facilitate their expansion plans.

However, “it was disappointing that the income tax slabs remained the same. Higher exemption level and lower taxes will improve the disposable income with the middle and higher middle class people and help improve the saving rate,” he said in a statement. The increase in petrol and diesel prices, as a result of increase in cess and duty, will have a cascading effect.

Describing the budget as one that sought to balance focus on multiple things, CII-TS vice-chairman Krishna Bodanapu said the intended measures for start-ups were welcome.

“It is a good starting point,” he said, on the resolution proposed for the angel tax issue by introducing a mechanism of e-verification for the investors. A big concern area for start-ups, the issue was becoming an irritant, he said. The trade and industry response in Telangana to the budget was mixed.

Cyient Executive Chairman and former chairman of Nasscom B.V.R.Mohan Reddy said the budget reinforces the government’s commitment to growth through investment and improving the social infrastructure.

Co-founder and director of Freyr Energy Radhika Choudary hailed the government’s continued focus on renewable energy. Tax breaks on loans for solar installation would help in more adoption of the solar power at residential and industrial level, she said.

Realtors unhappy

Aparna Constructions and Estates Director Rakesh Reddy said real estate industry’s hopes of the budget according infrastructure status were dashed. From a consumer point of view, increasing the interest deduction up to ₹ 3.5 lakh on loans for purchase of a house valued up to ₹45 lakh is encouraging.

“It is time to wait and see the amendments in the Model Tenancy Law that will hopefully bring bank the investing community into the market,” he said in a release.