The industry placed these demands during the customary pre-budget consultations with Finance Minister P Chidambaram, saying the steps were necessary to spur consumption and investment level — key to sustaining economic expansion. Although the industry wanted him to impose 35 per cent import duty on Chinese products, it is understood that Mr Chidambaram observed that rupee appreciation has not been much in terms of real effective exchange rate to warrant it.

Sustain growth

Further, according to him, that though there were reports of a dip in exports due to rupee appreciation, tax collections did not corroborate this. Mr Chidambaram was of the view that industry and services sector need to sustain high growth rates, as four per cent growth in agriculture alone would not help achieve 9-10 per cent economic growth. For this, the industry sought greater tax concessions.

Meanwhile, the budget, is expected to focus on twin-strategy of promoting consumption as well as investment to sustain ongoing growth momentum.

Mr Chidambaram is understood to stressed that the industry and services sector must strive towards attaining high growth rates to maintain overall 9 to 10 per cent economic growth rate, sources said.

Since four per cent growth in agriculture alone would not help achieve 9-10 per cent economic growth the burden will be more on industry to maintain high growth momentum, sources said.

To enable the industry to achieve higher growth rate the finance minister indicated that the Centre would take necessary measures to spur investment, sources said.