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Patna,(BiharTimes): Though apparently appreciating the state government’s move to pay more attention to agriculture sector Bihar Industries Association (BIA) has expressed serious concern over low allocation for industry in the 2012-13 state Budget.
Stating this the President of the BIA, K P S Keshri, said that the industry sector had got barely a little more than one-third of the Budget allocation for agriculture sector or say primary sector. |
Demanding strengthening of secondary sector, that is industry, as it has the potential to generate employment in a big way he said that increase in number of jobs would ease pressure on agriculture, on which 89% of the rural population is dependent for its livelihood in the state.
Keshri said that development of manufacturing sector is important for generating jobs and added that industry has the potential to create demand for services that is tertiary sector, which include transportation, hospitality sector, information technology services and others. The secondary and tertiary sectors, taken together, would generate huge employment, easing the pressure on land which alone cannot meet the requirement of entire rural population.
The BIA chief said that secondary and tertiary sectors are related to the primary sector for sustained economic development and revenue generation.
He said that manufacturing sector needs special care, but regretted that so far no such attention has been paid due to various factors, including the one related to continuance of entry tax on machineries for setting up of industries and raw materials. He recalled that it was way back in 2009-10 that the state government had assured waiving of entry tax on import of machineries to promote industrial growth.
Due to the above factors, the products of local industries were costlier rendering them less competitive in comparison to the products manufactured in neighbouring states.
Industry should be balanced with other sectors, including agriculture, in the matter of Budgetary allocation. This would help economy grow at much faster pace.
According to Keshri compounding of tax on manufactured products of micro industries should be introduced on the pattern of one-time compound tax realized from small traders over the annual sales of their goods. This would help in growth of micro industries, he said and added that this would pave way for self-employment among the rural and urban entrepreneurs who start their ventures with small capital.
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