A mix of good, bad and ugly

By Venkatachari Jagannathan | 01 Mar 2002

1
"There 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 Raghu.

"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 India."

"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 Hyderabad."

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 Quadrilateral."

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."

Sums 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."

 

Latest articles

RIL to invest Rs65,000 cr in 500 biogas plants in Andhra Pradesh

RIL to invest Rs65,000 cr in 500 biogas plants in Andhra Pradesh

DRDO lab develops silicone carbide wafers, gallium nitride transistors for MMICs

DRDO lab develops silicone carbide wafers, gallium nitride transistors for MMICs

Senior bankers in PSBs are in firing line: AIBEA

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

Entry of Starlink and Kuiper could churn India’s telecom sector

Entry of Starlink and Kuiper could churn India’s telecom sector

India building Rs820-cr railway test track in Rajasthan

India building Rs820-cr railway test track in Rajasthan

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

New central scheme to facilitate guarantee-free loans for higher education

New central scheme to facilitate guarantee-free loans for higher education

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers