Ind captains react to Budget with guarded optimism

Kolkata, Feb 28: Captains of various industries in Eastern Indiatoday welcomed the union budget proposals for 2007-08 with guardedoptimism and hoped that it would ensure faster all round economicgrowth.

Reacting to Union Finance Minister P Chidambaram's budgetproposals for the next fiscal senior office bearers of all the citybased Chambers of Commmerce and Industries, including the Confederationof Indian Industry(CII), Indian Chamber of Commerce(ICC), BengalChamber of Commerce said though the budget did not usher in any newreform process, it had showed the way for long term growth in varioussectors, particularly in the field of infrastructure.

Vice-Chairman of the Gujarat-Ambuja Group Harsh Neotia whilewelcoming the overall budget, described it as 'pro-commoners'. He feltthat allocation of funds for the development of health, education andseveral infrastructural projects would go a long way in ensuring themuch talked about double digit growth in GDP in the 11th Plan period,beginning this year.

Noted industralist and President ICC S K Bangur complimenting theFinance minister for suggesting 'positive steps to increase the revenueand aiming to reduce the revernue deficit from 4.3 per cent last yearto 3.5 per cent', also hoped that proper implementation of eightflagship projects, as announced by Mr Chidambaram, would take thecountry to the double digit growth.

He also hailed the government's attempts to bring down the rate ofinflation to less than five per cent from around 6.2 per cent nowthrough various fiscal discipline and hoped that the timely completionof a number of infrastructural projects would ensure speedy growth ofIndustry across the country including the Northeast. In thisconnectiion he also welcomed the proposal to allocate additional fundsfor the Northeast.

Mr Sanjay Budhia, Chairman of Rs 200 crores Patton Industries anda senior member of CII and ICC, was a little critical about the FinanceMinister's propoisal to increase the rate of dividend tax by 2.5 percent from the present 12.5 per cent(to 15 per cent) and felt that itwas bound to have a negative effect on the industry as a whole. He wasalso cautious about reating to the proposal for further widening theservice tax net.

But regarding the proposal for making the use of PAN cardmandatory for all financial transaction, Mr Budhia said it was a stepin the right direction.

Mr Bhusan Raina, Vice-President, Corporate Affairs Tata Steel andchairman of CII Export Commiottee was more candid in saying that theBudget was "as expected and as anticipated by the industry" and hopedthat FBT should have some more friendly features apart from having thestock option and the exemption of free smaples and displays.

BCCI President and Managing Director of DESCON S Radhakrishnan ina somewhat reserved comment described today's budget proposals as "nothing but a normal routine speech with having substantial focus oninfrastructure and social security." " We had expected some innovativeinfrationary management approach to the budget which was not veryvisible at the outset. However,one of the interesting features has beenallowing foreign exchange reserves for infrastructure development," hesaid and described it as an interesting approach.

Among others BCCI Secretary General K Mukherjee and hiscounterpart in ICC Rajeev Singh seemed fairly optimistic about theoverall budget proposals and hoped that several price cotrol mechanismlike the one in cement industry would certainly lead to the continuousreform process.

UNI