Captains of the Indian industry on Monday welcomed the Union Budget 2005-06 describing it as growth-oriented.
Confedertion of Indian Industry chief Tarun Das said, "We are on a good wicket as far as the economy is concerned," and reforms are on track.
"There are several positives it is difficult to find negatives," he said.
Maruti Udyog managing director Jagdish Khattar said, "It is a good Budget and a forward looking one."
"Focus on employment is a welcome step. Bharat Nirman is a step in the right direction," Bharti Televenture head Sunil Mittal said.
Rajiv Karwal of Electrolux India said reduction of excise duty on air-conditioners from 24 to 16 per cent will help bring down the prices of the product between Rs 500 and Rs 1500. This will also help imports.
Arun Bharatram of SRF Ltd said overall, the Budget is good because the minister has emphasised on five-six areas, such as textile and irrigation, for job creation. The additional focus on the textile industry with duty reduction is a step in the right direction, as it would help the sector become globally competitive, besides generating more jobs.
The proposal on corporate tax is basically a revenue-neutral exercise but reduced duty and depreciation rate will simplify the entire process, he added.
The Budget has also reduced customs duty on several products, which will reduce the cost of production and benefit consumers, he added.
Uday Kotak of Kotak Mahindra lauded the Budget as one of the finest he has ever heard.
"It recognises the importance of the financial sector as the key engine for growth. It takes care of the nitty-gritty of what makes the financial market work," he added.
Amit Mitra, general secretary of Federation of Indian Chambers of Commerce and Industry said, "The Budget has come close to our expectation. The special emphasis given to the textile sector is positive and will lead to generation of employment. The finance minister has given equal attention to agriculture, construction and manufacturing," he added.
The decision to cut corporate tax for domestic companies by five per cent is a positive step but actual impact on the companies will be only 1-2 per cent, he added.
Shyamla Gopinath of Reserve Bank of India said the Budget would help the banks become more responsible to the rural sector and farmers as far as lending is concerned and it would turn lending into profitability.
Rajiv Kumar, chief economist of Confederation of Indian Industry said overall it is a good Budget. It will help maintain the growth momentum. He appreciated that the budget has focussed on areas like infrastructure, agriculture and doubling of allocation on NHAI.
On the fiscal side, he said the FM has done a tough balancing act and shown fiscal prudence but regretted that the depreciation has been further decreased. The industry would have preferred the depreciation level maintained at the earlier 20 per cent.
He said the Budget has widened the tax net and the industry always welcomes the widening of tax net. The focus is on creating jobs by supporting industries like pharmaceutical and textiles.
Naresh Trehan, Escorts Hospitals, demanded an infrastructure status for the health industry. "The current Budget allocation is not enough to meet the health requirements of such a vast country. The need is to bring in heavy investment."
Rajan Mittal deputy MD Bharti Televentures said overall the Budget is good for the industry. Special emphasis given on the manufacturing sector would also help increase telecom manufacturing activities in the country.
The Budget's direction for improvement of ports, airports, roads and improving healthcare, housing sanitation are long term goals, which will fetch dividends, he said.
Anshuman Magazine of CB Richard Ellis hailed the Budget and said the focus on infrastructure is a positive step, which will improve the overall investment climate.
Bajaj Tempo's Abhay Firodia said it is a satisfactory Budget but did not match the expectations of the auto sector.
