Budget falls short of expectations, says India Inc

NDTV Correspondent

Monday, July 06, 2009 (New Delhi)

The budget has failed to meet the expectations of India Inc. The abolition of the FBT was broadly welcomed but the hike in MAT and the extension of the STPI benefits by just one year disappointed many.

PC Kapoor of Bharati Shipyard

“I am disappointed with the budget. The shipping & shipbuilding industry generates a lot of revenues & employment. But it finds no mention of the sector in the budget.”

Pawan Goenka, president of automotive business, M&M

“I am hugely disappointed by no change in excise differential for vehicles. I am also disappointed that excise surcharge of Rs 15,000 not rolled back.”

Nitin Paranjpe, CEO, HUL

“The emphasis on rural market was expected and it is good and in the right direction. It will boost consumption and growth.”

Dabur

“The abolition of FBT is a very good step for the industry. The steps towards rural development will be very positive for us. The GST implementation by April 2010 is another positive but clear roadmap still not available. Overall, Budget has nothing major for the sector.”

Ajit Gulabchand, chairman, Hindustan Construction

“It is a stable budget. But we would have liked to see greater spending on infrastructure. The step taken on IIFCL front is important.”

Mastek

The STPI extension by a year is not enough for mid-cap IT companies and the tax outgo will increase because of MAT hike. However, the increase in the MAT offset period is a good move. And the FBT abolition will benefit immensely.

Shivinder Singh of Fortis

“I am disappointed. It has been a very muted budget.”

S Mahalingam, CFO of TCS

“We couldn’t have expected much more with the fiscal deficit at 6.8 per cent.”

Jawahar Goel,MD, Dish TV

“The FM must have been under compulsion to introduce customs duty on set-top-boxes. With 5% customs duty imposed on STBs, prices of STBs are bound to go up and this will be passed on to the customers.”

Suresh Senapaty, CFO, Wipro

“I am delighted that a complex tax like FBT is abolished. The STPI extension by a year has fallen short of expectations.”

Mohandas Pai of Infosys

“The FBT abolition is a huge relief for corporate sector and will help IT industry operations. The ESOPs will become attractive without FBT."

S Ramadorai, CEO & MD, TCS

“Given the operating environment, this has been a pragmatic effort that touches rural and urban India through development schemes and personal taxation measures respectively and advances the agenda for inclusive growth through higher outlays on physical and soft infrastructure. To ensure efficient delivery on these programs however, there is a concurrent need to use country’s expertise to integrate technology for effective implementation. For the IT industry, the extension of the tax exemption under STPI for one more year is a step in the right direction as is the abolition of FBT. The FM may have missed a trick by not unleashing a wide-ranging e-governance program to extract more economic efficiencies.”

SK Roongta, CMD, SAIL

“Thrust on infra and JNNURM will help the steel sector.”

Bharat Doshi, Group CFO, ED, M&M

It is disappointing for tractor sales. The farm loan waiver should help the farmers. Tax being reduced to Rs 15,000 on cars above 2000 cc capacity is a very marginal cut and we were expecting a greater cut.”

Adi Godrej, Chairman Godrej Group

“Some provisions such as ones for rural sector positive would stimulate demand. Increase in MAT would be negative for companies who have invested in backward areas. No incentive for housing is a negative as well. Consumption would be boosted, thanks to steps taken in budget. However, I’m disappointed that nothing was done for affordable housing in budget. Increase in excise and service tax a very positive sign and the investment into rural schemes is a very good move.

Deepak Asher, Director, INOX Leisure

“We will continue to lobby for entertainment tax to be subsumed in GST. Ten days ago multiplex representatives held a meeting with the Central government on the issue and it was positively received, so we are hopeful.”

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	"I am disappointed with the Budget. The shipping and shipbuilding industry generates a lot of revenues and employment. But it finds no mention of the sector in the Budget." PC Kapoor, Managing Director of Bharati Shipyard
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