Godrej Soaps managing director Adi Godrej said the main concern is the rate of taxation and corporate taxes levies. "The taxes will impede the rate of growth and will not augur well for the industry," said Godrej. He said even as excise levels on cosmetics and toiletries, one of the areas where Godrej has a presence, have been reduced to 24 per cent from 30 per cent, the additional 6 per cent surcharge takes the effective rate back to 30 per cent. On whether Godrej Soaps would consider setting up facilities in the north-east parts of the country now that incentives are being provided, Godrej said the company would have to first study the option.

Measures not enough

Intel South Asia director Atul Vijaykar: The measures taken in the budget are not enough. While the IT taskforce had recommended the elimination of customs duties on building blocks used in the computer industry, there has been only a marginal reduction in customs duties. Given the importanceof IT, we strongly recommend that the duty on products be brought down to 8 per cent. Moreover, the concessions on expenses incurred for Y2K problems are a belated step.

Automotive industry ignored

Acma president Dinesh Munot said the budget completely ignored the automotive industry and failed to address the recession in the sector. The budget has not recognised the potential of the industry as an engine for growth. "To our surprise, there is no stimulus for growth even for the commercial vehicles," Munot said. The budget does not address the threat posed by spurious parts which do not attract the tax burden.

Not a long-term budget

Ashok Leyland managing director R Seshasayee said: "It is more of a `sure and now' budget rather than a long term budget and certainly not a visionary budget". On the excise duty rationalisation, he said, "We will have to wait to see the details but duty on commercial vehicles is up from 15 per cent to 16 per cent. Overall it appears in most cases for twosteps forward there has been one step backward and in some cases two steps backward too."

Negative for IT sector

Wipro Peripherals president Ram N Agarwal said it was a very negative budget for the information technology sector. "The increase in excise duties and customs duties will lead to increase in prices and stifle demand for infotech products "The government has also not announced any incentives for manufacturing infotech products in the country."

No mention for toursim

Thomas Cook (India) Ltd chairman Pradip Madhavji said the budget did not have any mention on the tourism industry which is the third-largest foreign exchange earner. "When the focus is on foreign exchange earnings the tourism industry should not have been neglected especially in a visit-India year."

No major change

HSBC Securitites dealing head Sanjeev Sangjvi said there has not been any major change. The preferred sectors seem to be software, fast-moving consumer goods and pharmaceuticals. The eveningout of long-term capital gains tax is a positive move. Mutual funds should get a boost. "The downside is the surcharge on corporate tax which was anyway anticipated. The one rupee increase in diesel prices is also a downside.

Automobile sector left in lurch

Volvo India managing director Ravi Uppal said very little has been done for the country's automobile sector in spite of the fact that the commercial vehicle market has been hit for the last two-to-three years. "As a matter of fact, he has increased excise duties and imposed a surcharge on diesel.This will lead to increase in the cost of freight transportation by eight to 10 percent leading to higher inflation."

Market booster

Infosys Technologies Ltd deputy MD S Gopalkrishnan said: "Overall for the capital market it is a favourable budget, especially because the capital gains tax has been reduced to 10 per cent and also (because of) the tax proposals for the mutual fund industry.