Top corporates welcome budget 2011-12

NEW DELHI/MUMBAI - Reactions were mostly positive from the corporate sector to the general budget presented by Finance Minister Pranab Mukherjee in the Lok Sabha Monday.

Some of the reactions were:

Adi Godrej, chairman of Godrej Group: “The most important thing is that he (Pranab Mukherjee) has clearly given a signal of GST (Goods and Service Tax) coming through soon. That is a major development which is very welcome as it will help solve a lot of macroeconomic issues, including inflation, fiscal deficit and help GDP growth.”

Naina Lal Kidwai, country head of HSBC group in India: “The government borrowing is slightly at a level lower than what the markets had expected at Rs.345,000 crore. A number of the steps that have been taken to put money into the hands of the people in the lower income brackets is a very favourable stand.”

C.S. Verma, chairman of Steel Authority of India (SAIL): “Higher export duty on iron ore has been a long pending demand of the steel industry and the budget has taken care of the issue by increasing the export duty to 20 percent. This should ensure higher availability of iron ore for the Indian steel industry.”

Madhu Kela, chief investment strategist of Reliance Capital: “Foreign investment in equity mutual funds is a big positive for market.”

Uday Kotak, executive chairman and managing director of Kotak Mahindra Bank: “The budget has been a positive surprise. If the fiscal deficit is brought down to 4.6 percent and the trend continues, there will be greater fiscal consolidation.”

Karl Slym, president and managing director of General Motors India: “The government’s intention to reach consensus with states and introduce GST bill in the current session of parliament, introduction of Direct Taxes Code (DTC) by April 1, 2012, setting up of national mission for hybrid and electric vehicles are welcome decisions.”

Jagannadham Thunuguntla, strategist and head of research of SMC Global Securities: “Although on the disinvestment front in this fiscal year the government fell short of the target, they have shown the momentum and aggression by maintaining Rs.40,000 crore target for the current year also. This is encouraging.”

Navin M. Raheja, chairman of Raheja Developers: “Overall, the budget is good for the general public. But it fails to the expectations of real estate and SEZs (special economic zones). Also, imposition of service tax on hospitals and hotels will add cost to basic necessities. The minister has not considered any of the demands of realty sector.”