'Insipid ... No Reforms'

Habil Khorakiwala, FICCI president and Wockhardt chief: It(Budget) would send wrong signals at a time when India Inc was expectingrationalisation in corporate tax rates to yield larger revenues. Measures likebringing ESOPS under the FBT net, extension of MAT to IT sector and service taxon rental property for commercial purpose would also put additional burden onthe corporate sector. One does not understand how the multiple taxes should becharged. I think the feeling of the chamber is that the Finance Minister haslost an opportunity of providing relief to the corporate world.

V.N. Dhoot, Assocham president and Videocon Group chairman: Theimpact of increase in DDT on corporates to 15 per cent would be negative ongrowth, investor sentiment and capital markets. Chidambaram should haveclarified policy on SEZ and made it transparent in the Finance Act, while thereforms in banking and insurance sectors needed to be liberalised further.

R. Sesashayee, CII president: This Budget is disappointing asno steps have been announced to increase productivity in agriculture,electricity and other sectors which are not producing up to their potential.Since revenues from peak customs and excise are increasing, this could have beena time to reduce excise duty to 20 per cent, if not 15 per cent overall, whichwould have been in line with the Kelkar Committee Report.

Sunil Mittal, Bharti Group chairman: There was not much choicein the hands of the Finance Minister. We asked to simplify duties on the telecomsector and that has been addressed by setting up of a committee.

Rahul Bajaj, chairman Bajaj Auto and Congress MP: In thepresent circumstances, from the corporate point of view it could have been avery bad Budget, but it is not. Baring the dividend distribution tax, it is avery good Budget.

Pawan Munjal, Hero Honda managing director: No big reforms, itwas a populist Budget with focus on Bharat Nirman, agriculture and health care. Nodirect focus on the auto sector.

Jagdish Khattar, Maruti Udyog managing director: Nothing isthere for the auto sector in the Budget. Presently it is a disappointment, butemphasis on agriculture and education are welcome steps.

D.D. Rathi, Grasim CFO: The tax structure is a hybrid type andcement contributes very low in inflation. So I see no reason why such stepsshould be taken.

Gautam Singhania, chairman & managing director, Raymond Ltd:For the textile industry, the Budget has been generally positive. The TUF schemehas been extended till the end of the 11th plan period. Allocation under the TUFscheme for the next year has been increased which should expedite the release ofthe subsidy. Peak rates of the duty have been cut and import duties onpolyester have been reduced. Increased allocation to textile-integrated parks isvery welcome as it will boost the set up of additional capacities to cater tothe growing domestic market and export.

Malvinder Singh, CEO & MD of Ranbaxy: It is good that the FM did have so many positiveannouncements to make for the healthcare sector because that is very importantfor the economy to move forward.

B. Muthuraman, managing director, Tata Steel: The Budget ismore focused to bring the under-performing sectors to perform, withoutjeopardizing the growth trajectory of the overall economy. However, the increasein dividend distribution tax and cess on education, though, would increase thetax burden on the corporates. The increased investment in sectors such asagriculture, education, health and infrastructure will contribute to sustain thegrowth in the long term. While the increased investment in health and educationis going to bring about inclusive growth, the increased focus on infrastructurewould support increase in the demand for manufactured goods as well as make themanufactured goods cost competitive in the long run. The focus on agriculturesector is positive for the economy in the long term. The actions on reduction inindirect taxes on some products is specifically to contain the inflation fromthe fiscal side, which is more prudent to sustain the growth as the RBI hastaken enough steps on the monetary side. The introduction of export duty on ironore and chrome ore is a very welcome move and is directed towards conserving thescarce resources of the country for the long term benefit of the country.Though, restricting exports volume could also have been considered. The budgetas such is neutral towards the steel sector. Increase in dividend distributiontax and education cess is certainly negative from the investor point of view.

Naresh Trehan, CII national health care committee chairman: Thesteps are in the right direction, it is very positive. But it remains to be seenhow the implementation of National Rural Health Mission takes place. A 21%increase in outlay for the health segment is certainly appreciable, but healthcare should have been given the status of infrastructure.

Ruchir Sharma, Morgan Stanley Head (Emerging Markets): Inabsolute terms this Budget may turn out to be insipid. This is disappointingcompared to previous ones.