Leading NRI industrialist Lord Swraj Paul has said that the Union budget for 2012-13 has taken the reality of India's situation.

Reacting to the budget, Caparo Group Chairman Swraj Paul said: "The budget has taken the reality of India's situation. There are too many problems that exist which need to be dealt with to make the economy better.

"I hope the government gets the grip on the problem and start paying attention to it. India has a great future if we can get our house in order."

He described the budget as "a very good budget".

"It is a very good budget. Congratulations to the finance minister."

Finance minister Pranab Mukherjee in the budget presented yesterday hiked excise duty and service tax by 2% across-the-board to raise Rs. 45,940 crore and offered marginal relief to individuals in income tax.