Says Tata Services Ltd economic advisor Dr Siddhartha Roy, “The interim budget shows continuity in the government policies. Tax rates were brought down in the earlier years; these seem to be helping in the process of demand generation and industrial recovery. Tax revenues have actually increased by 17 per cent over the last year. In view of the fact that GDP is expected to increase by 7.5 per cent to 8 per cent, the tax GDP ratio this year should have gone up. Finally, as a budget it carries forward the spirit of economic reform.”

Satish Seth, executive vice chairman of Reliance Energy Ltd said: “The recently announced measures will boost the prospects of power sector and will substantially enhance overall competitiveness of the sector. These initiatives will ultimately result in long term lower cost of power in the interest of the consumers.”

Anand Mahindra, vice chairman Mahindra & Mahindra and CII President said: “The Finance Minister has lived up to his promise. It is truly an interim Budget. We were not expecting any major fireworks. It is heartening to know that areas like employment, infrastructure, agriculture, fiscal consolidation and rural development have been progressing steadily. Revival package for tea industry and tax exemption to business process outsourcing companies are other important steps.”

Ficci president YK Modi said: “The Interim budget speech of finance minister Jaswant Singh has given a bright picture of the Indian economy and projected a good future. Major incentives have been given to the agriculture sector, which in turn will help to generate demand. This is just vote on account, we expect more goodies in the next budget.”

Ravimohan, managing director & CEO, Crisil said: “It is good news on the fiscal deficit. However, merger of dearness allowance with the salary will have cascading effect on the states as well. Though the introduction of pension and judicial reforms were not expected today, it remains an unfinished agenda for the government. On support to IDBI, it is a signal that government stands solidly behind it.”

Nadir Godrej, managing director, Godrej Industries felt that the general economic growth will assist the FMCG segment and the reduction in the duty structure recently too will benefit. “This being an Interim Budget, many things were previously decided in the Mini Budget, but it has a growth oriented approach. The positive aspect is that in spite of lower taxation, the budgetary deficit is better off, relying on economic growth and a rise in government assets in PSUs due to the stock market growth. Lower credit rates to the farm sector are good for the cultivators, but they should ideally be driven by market forces. The government working on it can be dangerous,” warned Mr Godrej.

Tushar Jani, chairman, Blue Dart Express Ltd was of the opinion that the initiative on round the clock filing for customs clearance among other measures are part of the Kelkar committee recommendations and are welcomed.