Addressing a press conference here on Saturday, ICC president AV Lodha said: "It seems that various schemes suggested by the finance minister would provide strategic encouragement to the rural people." With the new scheme on gold deposits, the Government will be able to channelise huge amount of non-performing assets into productive use. This is a good innovation, Lodha said.

He said the stress on housing is significant as it will benefit steel, cement and other related industries.

According to Lodha, with 80 per cent of individual investments being in securities, the tax exemption for income fromUTI mutual funds is an extremely positive signal. The huge inflow of money into UTI will provide momentum to the market and confidence to investors.

He said the duty imposed on diesel will initially generate some inflationary pressures on the economy, but will finally have a beneficial effect as the collected money will be redeployed in industry and infrastructure. ICC vice-president KK Bangur said the proposed amendments to amalgamation, merger and demerger of companies are positive features as these will help the companies to concentrate on core competent areas.

Dhandhania believes that the Budget is moderate and growth oriented. It has been tailored to kickstart the economy, accelerate industrial growth and simultaneously stimulate the agricultural and rural economy by providing adequate incentives. "The filips offered to the infrastructure and housing sectors are indeed welcome and will go a long way in promoting rapid industrialisation."

He said by reducing the number of advalorem slabs of exciseduties from 11 to three, the negative aspect of classification and ambiguity has been done away with. Removal of Modvat restriction to 95 per cent is a step in the right direction and will help to improve productivity and growth. However, a uniform surcharge of 10 per cent on all commodities with few exceptions may have a negative effect.

Welcoming the proposal to rationalise customs duty by reducing the slabs, he said the move is aimed at a calibrated integration of customs tariff structure with the global system.

"The sops announced for the SSI sector are timely and will go a long way in accelerating the growth in this sector. However, the proposal for 10 per cent surcharge for both corporate and non-corporate assesses is not consistent with the spirit of liberalisation. At a time when the corporates and the people at large were expecting lower rates of tax, the imposition of the surcharge will definitely erode the confidence of the people in Government policies," Dhandhania said.