Industry views on the 2006-07 budget
Following are some reactions from analysts on the budget remarks so far.india Updated: Feb 28, 2006 13:40 IST
Following are some reactions from analysts on the budget remarks so far:
Sunil Muhnot, managing director and CEO, IDBI Capital, Mumbai:
"There has been a lot of focus on the agri sector. Food processing has been made into a priority sector which will result in the availability of credit to it. This sector has been suffering due to lack of funds."
"Similiarly, the funding to the tea sector, the jute sector and extending the textile upgradation fund to the handloom sector means that this segment will have access to more credit and funds. These are very important announcements."
Patrick Aranha, chief dealer, Mizuho, Mumbai:
"The rupee is reacting positively to the budget. There seems to be incentives that will encourage foreign investor inflows. It may be that people are expecting funds to come into the market as a result."
Jayant Pai, vice president, Parag Parikh Financial Advisory Services, Mumbai:
"It looks like a populist budget. He has said nothing about revenues. Looks like the finance minister is going to have higher taxes to fund it."
Gurunath Mudlapur, managing director at Atherstone Institute of research, Mumbai:
"The announcements so far have been in line with expectations. The budgetary proposals on infrastructure and social sectors sound good but one concern is that how will the government find resources for funding these projects. There could be fresh taxes to mobilise resources and that could be a concern.
But the 10 per cent gross domestic product target is encouraging and government spending is bound to boost growth overall."
Rajashekhar Hiramath, dealer at Fortis Securities, Mumbai:
"The best is still to come. So far he has spoken only about what he is going to give, let us see what he wants to receive."