India Inc terms General Budget to be ‘positive’ and ‘growth-oriented’

NEW DELHI - Terming the General Budget 2011-12 to be ‘positive’ and ‘growth-oriented’, the leaders of the Indian industry appeared pleasingly amazed with the unchanged excise rate in major sectors.

The Vice- Chairman and Managing Director of Kotak Mahindra Bank, Uday Kotak, said: “Budget has positively surprised us. Budget has done better than normal expectation.”

“Budget is positive for the equity and bond market. A 4.6 per cent fiscal deficit is looking like a very good number,” he added.

Kotak further said the auto sector was expecting a hike in excise, which has been kept unchanged at the existing levels.

He, however, said that the income tax relief provided to general tax payers as ‘marginal move’, as it has been increased by only Rs 20,000 to Rs 1.80 lakh from current limit of Rs 1.60 lakh.

Meanwhile, Confederation of Indian Industry (CII) President Hari Bhartia said: “Overall, the Budget is a growth-oriented and a good one and it has not taken the last year’s growth for granted.”

Bhartia further said the Finance Minister should have given more stress to the health sector and the demand for treatment of healthcare, as infrastructure has been overlooked.

“Also the digitisation of I-T system will expand the tax base. Compliance and self regulation will reduce human interaction,” he said.

Society of Indian Automobile Manufacturers (SIAM) President Pawan Goenka, while commenting on the proposal to launch a national mission for hybrid and electric vehicles, said: “This is a very welcome move. It will allow advanced technologies to be developed in India rather than importing technology.”

In his budget speech, Finance Minister Pranab Mukherjee informed that an effort will be made to provide green and clean transportation for the masses, and a national mission for hybrid and electric vehicles will be launched in collaboration with all stakeholders.

Future Group Chief Kishore Biyani said the government is showing its recognition through the budget what the modern retail has been saying so far.

“The announcements made to strengthen the farm sector, cold chain investments and recommendations to amend the Agriculture Produce Marketing Committee (APMC) Act are all indicative of the government’s will,” Biyani said.

“All the measures announced today are a precursor for things to come,” he added.

ENAM Securities Chairman Vallabh Bhansali expressing his pleasure with the budget said the Finance Minister has succeeded in fighting all populist forces. (ANI)