K Raghavendra Rao, managing director, Orchid Chemicals & Pharmaceuticals Limited

Chennai: While the corporate sector may have been disappointed by the absence of reduction in corporate taxes, and the markets may not have taken kindly the additional tax on short-term capital gains, on the whole, the budget is positive.

The reduction in excise duties should reduce inflationary pressures, and the pharmaceutical industry gains from reduction in import duty on capital goods, reduction of import duty on life-saving drugs and reduction in excise duty on all pharmaceutical products.

The inclusion of expenditure on outsourced research and development (R&D) for tax concessions is also an extremely healthy move and should encourage companies which have a strong R&D focus to increase their R&D outlays.