AV Birla Group chairman Kumar Mangalam Birla said it is a good budget given the circumstances. I think it clearly reflects the need of the hour. The steps to boost the equity market will go a long way to increase investor confidence. I feel the small investor can once again be attracted to investing in equities.

Some measures have been announced for the infrastructure sector like retaining zero import duty for mega power projects and sops for boosting the housing sector. This will have an effect down the line for other core sectors like cement. But maybe some more steps should have been announced to kickstart infrastructure.

The tax reliefs regarding restructuring in the corporate sector has been a major advancement. The sector needs to reorganise itself and the measures will go a long way in encouraging that.

The rationalisation of excise and customs duties are also a welcome step and I feel it is an indication that we are gradually moving towardsthe value-added tax regime. I, however, do not see the 10 per cent surcharge in corporate tax as having any major negative impact. The finance minister has also made statements regarding disinvestment of public sector enterprises. The target for funds mop-up through disinvestment set for the next fiscal is Rs 10,000 crore, that is double that of last year. I think we will have to wait and see whether the Government can garner that much.The PSUs will be greatly benefited if they can raise funds from banks to fund their voluntary retirement schemes.

An effort to control fiscal deficit

RPG Enterprises chairman Harsh Goenka said the budget makes a sincere effort to engineer fiscal discipline and bring the deficit down to 4 per cent next year. This should help reduce interest rates and also put a check on inflation.

It seeks to resolve a number of current economic problems of both rural and urban India through a variety of steps. For the industry and capital markets, measures like making dividends ofmutual funds tax free, easing regulations pertaining to investments by NRIs and foreign direct investments particularly in the pharma sector, measures to reduce banks NPAs etc, will help in restoring investors' confidence.

There is also a recognition of the need to make businesses competitive in a global market scenario by facilitating mergers and acquisitions.

An important initiative the budget takes is to simplify excise and customs duties. This will also ensure greater orderliness in the tax structure and impart stability to taxation.

However, the budget falls short in measures to generate demand which was necessary to give a kickstart for an immediate industrial recovery. No doubt the incentives given to housing construction will help some industries like steel and cement. But a full scale revival of industry in the current year appears difficult.

The surcharge on direct taxes will impose an additional burden on corporates and individuals.

As told to Arigit De