While the upcoming budget will be presented by Finance Minister on February 1 this year, all eyes will be set on what the government has for the agriculture sector and it’s new policies and schemes for Indian economy.
It is also believed that the government has already rolled out a slew of measures for the farm sector and thus no major decision can be taken.
The farmer’s agitation has entered into nearly two months and thousands of farmers mainly from the state of Punjab are still fighting for their rights staying firm on their demand of repealing contentious farm laws.
However, amid this turmoil, Finance Minister Nirmala Sitharaman will present Union Budget 2021 on February 1. This budget will be significant for farm and agri sector as the farmers across the state and mainly Punjabi farmers are throwing their anger against the central government’s decision. So, it is hoped that this budget might end the disappointment of farmers and bring back their smile.
Moreover, this budget will be also significant for industry and the whole economy.
Mr Ram Kaundinya, Director General, Federation of Seed Industry of India – “To address emerging challenges of climate change, stagnant yields and increase food production and nutrition needs of our country encouraging higher R&D investment is need of the hour. When compared to developed economies investment in research & development (R&D) in India is miniscule which is around 0.7% of GDP. The income tax deduction for the in-house Research and Development has been reducing over the last few years. In the final year 2010-2011, the weighted deduction of 200% was declared under the Section 35(2AB) of the Income Tax Act, 1961 to the eligible companies on in house research and development (R&D) facility as approved by the Department of Scientific and Industrial Research (DSIR). However, through an amendment as per Finance Act 2016, the weighted deduction was reduced to 150% in 2017 and further to 100% in 2020. Considering the relevance of R&D investment for Indian economy and agriculture we request for restoring 200% income tax deduction for R&D expenditure in the seed industry.”
Dr Shivendra Bajaj, Executive Director, Federation of Seed Industry of India – “We expect a GST reform as there is an imbalance in the seed industry in terms of GST cost. While there is no GST on final product sold which is the seed but at the same time GST is applicable on most of the expenses incurred on accessory materials such as packing materials, chemicals used in processing, processing charges, R&D expenditure and other services. However, the GST input credit cannot be claimed as there is no GST on the final product i.e. seed. Therefore, the seed companies are not able to recover the GST paid on inputs and is an additional cost to the company. We are requesting that the government should look at extending GST Input credit and arrange to refund GST paid on inputs.”
