are a couple of good aspects in the budget, like the thrust on
agriculture and rural marketing. The finance minister also talked
about the new plans on ports and increased the outlay for health and
education. This is really a maintenance-oriented budget. There is no
mention about second-generation reforms, that is labour law
reforms," says Tube Investments of India managing director V A
"But I dont see any
growth impetus in this budget. A growth of 5 per cent is not adequate.
Who is going to invest now when there is already an excess capacity?
So the 15 per cent additional depreciation benefit is not much of
practical use to propel the economy," he says.
Similarly, raw material costs
in India is still on the high side. For instance, domestic steel is
expensive compared to imports, thus hampering the countrys growth.
Raghu says the share of the manufacturing sector in the GDP is going
down. "Instead of inflation there is a fear of deflation in
"We at Tube Investments
will look out for a cheaper source of components, rather than setting
up new manufacturing units. We are now importing some components for
our bicycles and are thinking of doing the same in respects of chains
made by the group company, TI Diamond Chains," he says.
Echoing the same sentiment,
Cognizant Technology Solutions president and COO N Lakshmi Narayanan
says: "There is some positive direction for infrastructure and
agriculture. The key segments in infrastructure, such as power, ports
and aviation being opened up for private participation and the package
concessions offered for private participation under the Greenfield
Airport project, will benefit upcoming projects in Bangalore and
But, he says, there is no
aggressive push to expedite the reforms process and revive the
economy. "The current budget shows no indication of opening up of
our markets and increasing FDI inflows. The need of the hour is to
open up sectors such as retail to foreign companies and to give the
right thrust for infrastructure development projects like the Golden
Narayanan says the budget is
harsh and penalising on the salaried class and the common man.
"The withdrawal of 20 per cent tax rebate above Rs 1,50,000,
along with increased prices of LPG and railway tariffs, will impact
the salaried class."
up Laser Soft Infosystems chairman B Suresh Kamath: "The
reintroduction of dividend tax in the hands of the recipients and the
5 per cent security surcharge on tax will affect the capital markets
and the bottomline of corporates. The changes in section 88B and
reduction of interest rates will affect adversely the lower
middle-class population. The budget has ignored the employment
generation for poor citizens and the physically-challenged."