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Kudos to Minister from industry

NEW DELHI: With their fears about the Union budget for 2008-09 turning out to be a populist budget at its cost belied, India Inc is all cheers for Finance Minister P. Chidambaram’s fifth consecutive budget though it laced its endorsement with some expressions of disappointment here and there over unaddressed concerns.

The corporate world’s general satisfaction and approval was reflected in the use of adjectives and epithets like ‘positive, growth-oriented, fantastic and excellent” that greeted the budget. There was also acknowledgement of the proposals announced to provide relief to the common man in hiking of the exemption limit for income tax and stepping up of allocations education and health besides waiver of outstanding loans of the farmers.

“The budget is on the expected lines and the industry has not been penalised although we are disappointed that the corporate tax has not been changed,” apex industry body CII’s president Sunil Mittal said. The Finance Minister has presented a comprehensive, balanced and growth-oriented budget.“By laying the strong foundations for a sustained inclusive growth including double digit economic growth, particularly by focusing on building `Human Skill Development Bank’, tremendous boost to agrarian economy, paving way for PPP in education and health, the Finance Minister has even exceeded expectations of corporate sector in his budget proposals, commented Assocham President Venugopal Dhoot and industry body’s President-elect Sajjan Jindal.

FICCI President Rajeev Chandrasekhar termed the budget “overall positive” but added that the Finance Minister could have been “bolder”. Though it is an “election season budget” he has managed to strike a balance between a “populist” and a “growth oriented” budget.

Expressing disappointment over the budget, Ganesh Kumar Gupta, president, Federation of Indian Exports Organisations said the budget has not addressed the problems faced by the exporters in view of appreciating rupee and stagnating traditional markets.

“Corporate tax is at fair levels. An increase of five per cent on short-term capital gains will make people hold for medium term,” Kotak Mahidra Bank Managing Director Uday Kotak said even as the FICCI expected some relief by way of a cut in corporate tax.

PHDCCI President L. K. Malhotra said that political considerations have dominated the economic decision making, particularly while writing off the huge debt of farmers. However the reduction in General CENVAT rate was a step in the right direction.

S. M. Dewan, Director-General, Standing Conference of Public Enterprises (SCOPE), said that it was a forward looking budget that tries to balance growth with social justice and welfare.

Welcoming higher outlays for Bharat Nirman, irrigation projects, mega power projects, rural housing that along with reduction in excise duty for auto would spur infrastructure development, SAIL Chief S. K. Roongta said that brining down Cenvat from 16 to 14 per cent would help contain the cost of steel, especially for construction purposes.

Industrialist Sajjan Jindal, Vice-Chairman and MD of JSW Steel also said: “This is a mixed budget and the FM has not touched upon the corporate tax, which we were anticipating. The focus is on agriculture and education sector.”

Hero Honda Motors Managing Director Pawan Munjal said the excise cut on two and three-wheelers to 12 per cent from 16 per cent was a welcome move.

Hyundai Motor India Ltd senior vice-president (sales and marketing) Arvind Saxena said: “We are happy with the proposal, but he [FM] could have taken a few more steps for the bigger cars and exports.” The company would pass on the excise duty cut to the customers.

TVS Motors CMD Venu Srinivasan said: “The cut in excise duty is a positive step for the industry.”

Pfizer India Managing Director Kewal Handa welcomed the steps taken for the pharmaceutical sector to cut excise duty on drugs from 16 per cent to 8 per cent.

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