Confederation of Indian Industry president Arun Bharat Ram has welcomed the modifications. CII president has said that these were very pragmatic steps and would give a further filip to the growth of the knowledge-based industries.

Federation of Indian Chambers of Commerce and Industry president, G P Goenka said the measures would support domestic segments like tea, coffee and biscuits and would accelerate the growth in the housing sector.Welcoming the amendments, Associated Chambers of Commerce and Industry of India president Shekhar Bajaj said it would have a positive impact on the economy and stock market, especially on the knowledge-based industries.

Goenka was also optimistic of reviewing the decision taken in the case of dividend tax. He said that this would pace up the process of economic recovery.

Chambers had been voicing the need to tax employee stock options (ESOPs) at the time of sale, which has finally been met. The move would help in retaining the right talent in the IT sector, said Goenka.

Bharat Ram said that the decision to raise the weighted deduction on R&D from 125-150 per cent would provide the necessary thrust to indigenous R&D. The announcement of graded tax holiday for software technology parks was also welcome, he said.

Goenka said at a time when India's expenditure on R&D is very insignificant at 1 per cent of the GDP, the measure would particularly help knowledge-based industries like pharmaceuticals, biotechnology, research institutions and other agro-based industries to commit more funds towards R&D, said Goenka.

The concessions of adoption of `pass through' principle for VCFs has also been welcomed by the chambers. Bharat Ram said VCFs would be incentivised to set up base and operate from India. The concessions would help the existing and start-up enterprises in the knowledge based sector.