Corporate sector hails budget, but expresses reservations too
The corporate sector has largely hailed Budget 2010-11, despite feeling it has not addressed many of their concerns.business Updated: Feb 26, 2010 21:28 IST
The corporate sector has largely hailed Budget 2010-11, despite feeling it has not addressed many of their concerns.
Ankur Bhatia, executive director of the Bird Group, said the budget for 2010-11 was definitely better than expected.
"But our demand for the two-star and above hotel industry to be categorized as an infrastructure sector has gone unheard," he added. "This needs urgent intervention as the country is already short of star category rooms across the country," he said.
Karl Slym, president & Managing Director, General Motors India, said the budget failed to meet the expectations of the automotive industry.
"The industry did not expect any hike in excise duty and imposition of some duty on petroleum products. The automotive industry is one of the growth drivers of the economy and as such continuation of the stimulus package for some more time would have helped the industry to regain the growth momentum."
Rajiv Ranjan Mishra, managing director of CLP India, said the increase in Minimum Alternate Tax rates is negative for the establishment of new generation facilities.
Kaushal Sampat, the chief operating officer of Dun & Bradstree India, said: "Although the excise duty rates have been hiked, they still remain at the pre-crisis level and help the process of economic recovery. Though there are no Big Bang announcements, it's tone is 'pro-reformist' and it is a positive budget."
R. Ramakrishnan, executive director-Bajaj Electricals Ltd, said: "I feel the fiscal stimulus should have been retained at least in 2010-11. India had the opportunity to become the fastest growing economy in the world. This may get somewhat impacted. The lowering of excise duty on LED's to 4 percent from 8 percent and the focus on non-conventional energy are welcome."
Kalyan Bhattacharya, President & CEO, Birla Power Solutions Ltd, said: "When expectations were big for a leap in strengthening the manufacturing sector, Budget 2010-11 is more like a small step."
Sandesh Kirkire, the chief executive officer of Kotak Asset Management Company Ltd, said the gradual withdrawal of stimulus indicated by the 2 percent rise in excise should protect the growth uptrend. "This rise in excise would marginally get balanced with the higher surplus in the hands of the consumers due to the raising of tax slabs."
Moon B. Shin, managing director, LG Electronics Indian Ltd., described the budget as a progressive one. He said: "With an impetus on high GDP growth, and laying down a roadmap for fiscal consolidation the government is putting down things in perspective when it comes to allocation of funds."
Sudip Bandyopadhyay, group president, Spice Finance, said the net additional tax revenue generation of Rs.20,500 crore should definitely improve government finances and reduce the need for borrowing. "Overall the budget will prove to be a great catalyst for propelling India to the next level of growth," he said.
Ajay Srinivasan, chief executive-Financial Services, Aditya Birla Group, said: "The opening up the banking sector to Non Banking Financial Companies (NBFCs) and the private sector is a significant step towards further strengthening and broadening the banking sector to bring it closer to the commoners."
Kapil Dev Singh, country manager of IDC India, a top IT intelligence and advisory firm, said: "The expectation of India achieving 10 percent growth in the near future points to the domestic market consumption being the key driver."