PTI reported that, anxious about the fiscal stimulus being withdrawn, India Inc is awaiting with bated breath presentation of the Union Budget by Mr Pranab Mukherjee finance minister on February 26th 2010.

According to a survey by industry chamber FICCI, the anxiety level in the industry is high enough to have affected its Business Confidence Index.

FICCI said that "he industry confidence level, which had been improving in the last three quarters, has reached a pause. Although demand situation in the economy is improving, there is now an air of uncertainty of what would happen in the near term."

With the annual industrial growth reaching 16.8% in December 2009, there are enough indications about the beginning of the withdrawal of the stimulus package, which was given last fiscal by way of excise duty and service tax cuts.

Prime Minister's Economic Advisory Council said that the government should initiate consolidation measures in the forthcoming Budget as the current level of fiscal and revenue deficits are unsustainable.

Despite growing factory output and exports returning to expansion mode, the industry has been lobbying hard with the government to continue with the reduced excise duty of 8% and service tax of 10%.

(Sourced from www.ptinews.com)