Overseas Indians are delighted by the bold initiatives taken. A number of recommendations have been accepted, such as reduction in long-term capital gains, freedom from procedural hassles, mutual fund tax concessions, removal of stamp duty on demat debt transfer, gold deposit scheme, special agency for FDI, FIPB approval in 30 days, concessions for business re-organisation and infrastructure development fund.

This will definitely encourage more inflow of NRI and direct foreign investments. The rural infrastructure fund should open to NRI participation. There are a few areas of concern such as misuse of programmes for the poor, implementation and lack of provision forelectoral fund. No mention is made about insurance and telecom sectors, which would have brought in large investments.

The control of fiscal deficit, although recognised, is not directly addressed in the budget. Token steps to downsize the government and reduce the revenue expenditure may not have the desired impact.

The Gold Deposit Scheme, with all required tax incentives could bring much needed resources. Direct foreign investment will get boost with the formation Foreign Implementation Investment Authority and the assurance of FIPB clearance in 30 days. The decision to permit 74 per cent equity in pharmaceutical industry through the automatic route will also promote more investments and make the industry globally competitive in the long term.

Measures to boost the capital market with active involvement of NRI is a welcome step and would encourage them to look at India as an investment destination. There is concern over the hike in HSD price and excise duty which would adversely affect the commercialvehicle industry, already under tremendous recession.

While the industrial growth was not the focus, tax incentives for business reorganisation will help better competitiveness and allow integration with the global economy.

In the banking sector, making NPA provision tax deductible is in accordance with the best international banking practice. Establishment of five more debt recovery tribunals is also a step in the right direction and will help the banks to clean up their balance sheet and improve profitability.