Industry views on the 2006-07 budget

Following are some reactions from analysts on the budget remarks so far.

Following are some reactions from analysts on the budget remarks so far:

Commentary:

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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:

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."