While accepting that a reduction in food and fertilisers subsidies had become "imperative" both FICCI and ASSOCHAM have warned that any cut in export subsidies might have an adverse impact on exports.Pointing out that exports are vital to bridge the payments deficit,FICCI has said that the IMF assistance can at best be only a "step gap arrangement".
Pointing out that an additional Rs. 6750 crore of taxes have been imposed after the last budget,FICCI has warned that any further tax effort would create "deep recessionary conditions".