Indian industry on Thursday welcomed the Union Budget as "pro-development" and said Finance Minister P
Chidambaram had considered the needs of all sections of the economy, with special focus on the rural
sector.
"Overall, the emphasis is on development and would help to achieve the envisaged 7-8 per cent growth,"
said Jamshyd Godrej, chairman of Godrej and Boyce.
He praised the Budget for putting emphasis on rural development, drinking water, healthcare and industry
and the fact that finance minister had indicated that manufacturing was a priority.
By increasing the service tax rate and bringing more services under the tax net, the government would
ensure huge revenue buoyancy that could fund growth plans, he said.
Essar Group chairman Shashi Ruia said the emphasis on education, health and drinking water was critical.
Welcoming the tonnage tax on shipping and hiking FDI into telecom, civil aviation and insurance, he said
the rise in excise duty, along with the reduction in customs duty, would encourage the dumping of low
quality steel into the country.
Tata Sons director J J Irani said the steel companies would have to decide whether to pass on the proposed
hike in excise duty on steel to customers.
Chairman of Apeejay Surendra Group Karan Paul described the Budget as "excellent" and said the thrust on
agriculture and infrastructure was timely.
Tata Power Company managing director Firoze Vandrevala said the focus on education and health in the
Budget were welcome steps but he wondered how many of the proposals could actually be implemented.
Chairman of Williamson Magor group B M Khaitan said this was a good Budget, which focussed on agriculture
and infrastructure.
Khaitan felt Chidambaram had tried to maintain the status quo by not tinkering with the tax rates, and that
the poorer section of the society would benefit most from this.
President of the Indian Chamber of Commerce and director of ITC Limited Anup Singh felt the budget was
positive and placed much attention on developing the social infrastructure. He said this budget could help
maintain the growth momentum of seven to eight per cent.
Harshavardhan Neotia, director of Bengal Ambuja Cement Ltd, said the budget was "good, considering that
it has balanced well the need of the social sectors and the industry." He expressed his satisfaction with the
emphasis on infrastructure and rural housing, saying it would boost the cement industry.
