Finance Minister's Union Budget Receives Acclaim from Gujarat's Diamond and Financial Sectors

Gujarat's diamond sector and GIFT City applauded the Union Budget presented by Finance Minister Nirmala Sitharaman. Key highlights include income tax relief for the middle class, a significant outlay for job creation and agriculture, and the abolition of 'angel tax.' Industry leaders see it as a launchpad for a developed India.

The diamond sector and GIFT City in Gujarat received the Union Budget presented by Finance Minister Nirmala Sitharaman with open arms on Tuesday. Industry leaders lauded the budget, calling it a significant step towards a developed India.

Finance Minister Nirmala Sitharaman announced several key measures, including income tax relief for the middle class, a Rs 2 lakh crore allocation for job creation over the next five years, and Rs 1.52 lakh crore earmarked for agriculture and allied sectors. Additionally, customs duties on mobile phones and gold were cut, and capital gains tax was simplified.

GIFT City Managing Director Tapan Ray highlighted the tax exemptions for retail schemes and ETFs in the IFSC, noting that this would create substantial business opportunities in the area. He expects investments from NRIs and foreign retail investors to surge, making GIFT City a more vibrant financial centre.

Industry leaders from the diamond sector, such as Vijay Mangukiya of the GJEPC, welcomed the abolition of the 2% equalisation levy on online auctions of rough diamonds and hailed measures like the safe harbour rule for displaying and selling rough diamonds at special notified zones. These changes will enable easier transactions and save transportation costs.

Representatives from various sectors, including textiles and edible oils, praised the budget for its inclusivity and targeted reliefs. Reductions in GST for cancer medicines, cuts in customs duty on X-ray machines and spandex yarn raw material, and a boost in the standard deduction for the middle class were particularly noted. Overall, the budget has been seen as supportive and progressive across multiple industries.

(With inputs from agencies.)