Well done, FM! says India Inc

For the corporate sector, the budget 2003 has been a godsend opportunity to kick-start the economy. Not only the finance minister Jaswant Singh has met demands of all industry associations, he, as a bonus, made more money available to the taxpayers which will result in increased consumer spending.

Marico CMD, Harsh C Mariwala said: “The Budget had been a good effort, although it had not fully lived up to the expectations that it had generated. The format of the Budget Speech was refreshingly different and the tone was positive. However, there is a lurking doubt whether the overall ambience of “All’s well” and “Things were never better” was somewhat misplaced.” B Muthuraman, MD, Tisco says: “On infrastructure, the budget has been very good, which is going to be good for steel, cement. The FM made a small announcement that 25% of the roads be made of concrete. Excise duty on cars, ACs are rationalised. ”

Adds Adi Godrej, Chairman, Godrej Consumer Products Ltd: “Freedom from dividend tax is a positive move. So also the reduction in fertiliser subsidy. However, the tax on dividend distribution which will now fall on the companies, is not a good move. I don’t expect that the budget will fuel any major growth in the economy as there are some negatives attached to it.” EIH chairman P.R.S. Oberoi adds, “This is for the first time that any Finance Minister has recognised the significance of the travel and tourism industry in the Budget. This is good for the Indian economy and will fuel growth in the country. The abolition of dividend tax is a positive step. It will also prove to be a boon for infrastructure development in the country.”