The new government outlined measures on Monday to speed infrastructure development and increased spending for farmers and the poor in its first budget.

Finance Minister Pranab Mukherjee pledged to return the country to the high growth rate of 9 percent a year as soon as possible, while estimated growth in 2008/09 at 6.7 percent.

Following are comments from industry officials on the budget.


CHANDA KOCHHAR, MD AND CEO, ICICI BANK

"The two positives are targeting a growth rate of 9 percent, that itself is a very bold and positive move, there is still a lot of focus on everything that would stimulate domestic consumption...which is going to lead us to a higher growth rate."

"In term of negatives, one could have expected a further clarity on the whole disinvestment process and how much money is going to be raised and so on... there is an indication that there is large money expected out of disinvestment, clarity has not come in yet, but we should expect clarity overtime."

 SANTOSH SINGHI, CFO, AMTEK AUTO

"There was nothing for the auto sector. There was some fillip for the textile and infrastructure sectors. But nothing specifically to boost growth in automobile sector."

J M GARG, CMD, CORPORATION BANK:

"It is more of a budget for the poor and infrastructure sector. Extension of debt relief to farmers would also help banks recover more debt."

AKHIL JINDAL, DIRECTOR, WELSPUN GUJARAT STAHL ROHREN

"Looks like it's a completely rural budget. It's not a budget of the 21st century. MAT (minimum alternate tax) has risen and that is going to hurt.

"But the biggest concern is the yawning fiscal deficit. The finance minister has done nothing to contain it. It will lead to downgrading of India's rating by agencies such as CRISIL and Standard & Poor. This will make fund raising difficult."

 RAJESH MEHTA, CHAIRMAN AND MANAGING DIRECTOR, RAJESH EXPORTS

"Branded jewellery has been exempted but he has increased the duty on gold. So I think overall, for the jewellery sector as such, I don't think this is a good budget, it is more negative than positive. The duty on gold will affect the industry as a whole as gold prices in India will go up... the industry was looking for abolishing of the duty".

KALPANA MORPARIA, CEO, J.P. MORGAN (on NDTV Profit)

"These are extraordinary times, lot of countries in developed world are running large deficits because they got to kickstart the economy. So I think we should not be too excessively obsessed about just now at 6.8 percent."

MADHAVI VORA, MANAGING DIRECTOR, ULJK SECURITIES
"He did not come out with key policy changes - PSU disinvesment, securities transaction tax, raising FDI limit for banking and insurance and FII limit for key sectors. It is really a big disappoinment. He has not touched the key subjects. Only positive is the fringe benefit tax. Government expenditure is high, fiscal deficit is high, current valuations of the market is also high. Global market is bad too. I think the market will tank."

RAJESH JAIN, CMD, EMCO LTD

"Overall, I think it's a good budget...as he (finance minister) reiterated that the spend on those (schemes like Acclerated Power Development and Reforms Programme and Rajiv Gandhi Grameen Vidyutikaran Yojana) is going to increase this year, which is a positive sign."

H.M.BANGUR, MANAGING DIRECTOR, SHREE CEMENT 
 "Indirectly, the cement industry will benefit definitely. We are comfortable with this budget from the cement industry point of view because very high budget grants have been given for the housing and road sector and this is where cement will be consumed."

JAI MAVANI, HEAD OF INFRASTRUCTURE, KPMG

"The IIFCL (India Infrastructure Finance Co Ltd) initiative on financing is a welcome step...This gives the ability, or the fallback, to some of the commercial banks to lend to infrastructure projects and then transfer the debt to the likes of IIFCL, which is an encouraging step." ...but I think there were a lot of other things that we were looking forward to the finance minister addressing in this budget, at least in terms of policy statements. Some of the tax holidays associated with infrastructure projects, on restructuring and things like that, which were not addressed."

 R.K. DALMIA, SENIOR PRESIDENT, CENTURY TEXTILES & INDUSTRIES

"There were some positive measures announced for the industry, but the government has also not touched upon many of our demands. The industry had asked for an increase in interest subvention to 4 percent. That did not happen. We also do not know how much the government has allocated under TUFS (Technology upgradation fund scheme), as it was not mentioned in the speech."

MANISH MOHNOT, EXECUTIVE DIRECTOR, KALPATARU POWER

"In the current scenario it will act as a booster to corporates... for APDRP (Accelerated Power Development and Reforms Programme)...additional amount has been provided, it is positive; their focus on National Highway Development Project and the gas pipeline is again a positive; abolition of FBT is also positive...benefits to exporters are also in the right direction."

RANJIT SHAHANI, VICE CHAIRMAN & MANAGING DIRECTOR, NOVARTIS  INDIA LTD

For the pharma industry, it was a disappointment. There is a yawning gap between what was needed and what has been given. He has reduced duties on life-saving drugs. This is a small measure. He did not do anything on increasing the incentive to R&D (research and development). He has not done anything for
healthcare infrastructure, improving healthcare access or for health insurance.

There were small announcements, but it did not add up to much. There was no road map given on how the fiscal deficit would be reduced. This was a tepid budget.

K V KAMATH - CHAIRMAN, ICICI BANK (ON CNBC TV18)

"I would think that one would have expected it in the budget but they have their own challenges because given the short time they had, to actually to work out an agenda for divestments. I think he dropped the hint very clearly, the market has come back with the message that the hint is not enough.

I think the more important path in the budget is holding taxes. Clearly the government is under pressure to reduce the deficit but they are not doing that....I think it puts a lot of money into the lay spender which is certainly good for the economy.. This is a budget that will take 2, 3 days for the larger markets, not just the capital markets, to understand and then probably react to it.

RAVI RAMU, DIRECTOR, PURAVANKARA PROJECTS LTD

"He's forgotten how to spell 'real,' forget about 'estate'. There's absolutely nothing. It's bone dry. Affordable housing, he doesn't seem to concerned about, whereas India needs homes. He only talked about housing below poverty line, lower income group. But what about the group just above that? That group is also screaming for decent housing."

RAJENDRA HINDUJA, EXEC DIRECTOR, GOKALDAS EXPORTS

"Nothing very great for the textile sector so far. Everybody was looking out for some immediate relief...the main demand (for apparel exporters) that export profits be made free did not come through. We were expecting an increase in subvention (to 4 percent). That also did not come through." 

Also Read
* Budget Highlights 2010
* India defence budget up 25 percent after Mumbai attacks
* Budget disappointing, says tax expert
* Debate hours shrinking with every budget
* Highlights of the Budget 2010
* Mamta tables Railway Budget 2009