Despite long requesting for the rationalisation of excise duties on the various segments, it was disappointing to see that our request on uniform excise tax has been neglected for yet another year. Reducing the excise duty on the small cars alone has actually widened the gap between small and other car segments. The excise duty on the mid-size car now stands at 24%, double that of a small car, which is disappointing for the customers of mid-size and larger cars. Though reduction in corporate taxes and customs duties, which the automobile industry was eagerly awaiting for, is another miss in the Budget. But reduction in customs duties for project imports will benefit us and is a welcome step, especially in light of Ford India's recent expansion and growth plans. There have been no significant investments made for improving roads, ports, etc, other than focus on the power sector. This Budget primarily focuses on social sectors, health and education. On an overall positive side, the Budget offers significant income tax exemptions to the salaried, which will help put more disposable income in the hands of consumers. This will result in the growth of consumer spending, and may benefit the auto sector. To compete with the global economies, India needs a lot attention towards infrastructure.

Rating : Not Rated

The Union Budget 2008-09 is balanced and on expected lines. With primary focus on agriculture, health, education and rural development, the progressive proposals outlined by the government in the Budget are on the right track. There are certain initiatives outlined in the Budget, which are positive for our business. The government's goal to achieve a double-digit growth in the manufacturing sector with certain reforms is certainly welcomed. Also, the proposals to launch world-class skill development programme will support the manufacturing industry. Our energy business will benefit from the acceleration of the Ultra Mega Power Projects and the setting up of the National Fund for the Power Transmission and Distribution reforms. The increased investments of 15% in the health sector coupled with 5-year tax holiday to encourage setting up of hospitals in tier II and tier III cities will boost our healthcare business. Overall, the Budget is favourable for our businesses. However, the Budget does not give enough emphasis on infrastructure and urban development, which is crucial to sustain the economic growth targets of the country.

Rating : Not Rated

I have not read the fine print yet, but from what I have heard so far, this is a good intentioned Budget. But translation of the intention to result will determine the future growth. For infrastructure creation, which is the crying need for the country, regretfully the Budget has not done enough, even though it provides some impetus to power and automobile sectors. The Budget would have received better ratings if it had more focus and commitment on infrastructure front. There seems to be nothing for ports, airports, urban housing, construction sectors etc. except for some. These are critical for the country to leap frog into the big league in global arena. Infrastructure deficit is growing at a rapid speed and needs to be addressed on war footing.

Rating : Not Rated

In the short term, reduction in excise duty will make small cars more attractive for customers and offset the negative impact of higher interest rates. This is an encouragement for companies like us, which are making major investments in capacity, research and exports. Overall, the Budget has some benefits for all sections of people while keeping the government’s finances healthy.

Rating : Not Rated

As a citizen of the country, I see many positives in the Budget, particularly the continued focus on education and health. Direct and indirect interventions in the agricultural sector are also promising. But on core manufacturing sector, there does not seem to be any significant direct thrust in the budgetory provisions or taxation proposals, although the need to excite this sector has been recognised. However, as a member of the cement industry, I may add that a product of mass consumption which is already among the most highly taxed, has received some more indirect tax loading by way of hike in CENVAT rates for clinker and bulk cement. On the whole, our view is that the Budget will help to promote demand in general, and therefore we shall look at it as progressive.

Rating : Not Rated

The Union Budget 2008-09 is a fine balance achieved by reckoning the political context and economic principles. What has helped the Finance Minister is the backdrop of an excellent scorecard: an estimated GDP growth rate of 8.7% despite global slowdown, buoyant revenue receipts exceeding estimates and deficits in line with milestones. The Budget addresses the recent loss of momentum in economic growth. It addresses the national priority of inclusive growth. It also recognizes the need to rein in inflation. The FM’s prescription to promote consumption is classical and proven: increase disposable income by reducing personal tax burden; simultaneously slash prices through excise duty reduction. The massive outlay for social infrastructure and the rural sector will also fuel consumption. Health, education and rural development continue to be in focus. The increased Budget support for the flagship national construction programmes show the Government’s serious desire to achieve inclusive growth. One commendable new step is the establishment of a non-profit corporation for skills development. It addresses a fundamental malady. One wishes a similar approach were taken in respect of agriculture where the fundamental issue is the low capital formation which needs to be raised. In that classical sense, the agricultural loan waiver can be questioned on moral grounds, but hanging on the other side of the balance are human lives. For the commercial vehicle industry, as for the rest of the industry, excise duty reduction is a move in the right direction as it reduces the embedded taxation and improves competitiveness of the Indian industry.I particularly welcome the additional excise duty reduction in respect of bus and chassis – public transport has a potentially much larger and beneficial role to play. I also welcome the tax incentives for green technology. One major sector that possibly did not get its due is the infrastructure sector – unless one interprets this as the major role expected of private investments. There could also be questions on hiking the short term capital gains tax at a time when the market is bearish.

Rating : Not Rated

We welcome Mr. Chidambaram’s proposals of providing 5-year tax holiday for setting up hospitals in non-urban cities/tier-2 and tier-3 towns and 2-star, 3-star and 4-star hotels in UNESCO declared world heritage sites. The proposed increase in expenditure on the development to National highways is another positive move. These will certainly give a further boost to the infrastructure sector of the country. On the other hand, Corporate India had been expecting a reduction in corporate tax atleast in the surcharge, which has not happened. Secondly, the proposal with regard to the introduction of certain tax sops for investing in infrastructure bonds is also absent.

Rating : Not Rated

The Budget has provided relief to the agriculture sector and individual tax payer but missed out in providing something substantial to the industry. The textile industry which is already under tremendous pressure due to increasing raw material costs, obsolete machinery, appreciating rupee as well as domestic inflationary pressure has nothing to look forward to in this budget. The textile industry was expecting cuts in the customs duty and certain sops which would have helped the industry to tide over the difficult situation that it is in now. Even, the marginal increase in the allocation for TUF from Rs 911 crore to Rs 1090 crore is too little, it will not even cover the disbursement for the year.

Rating : Not Rated

While there is an emphasis on rural housing, the budget is completely silent on the urban poor, which is a growing concern and needs attention. It is heartening to know the finance minister talking about Clean and Green technology, and making a way for institutional set-up to provide the same. While there was expectation on affordable housing, the budget has not benefited it directly, however, the changes introduced in the personal income tax slabs, will ensure higher disposable income in the hands of the people, who represent approx. 35% of the so called "Indian Middle Class" (income group of Rs.10,000-40,000 p.m.). This higher disposable income will definitely find its way into the housing segment. It is unfortunate that the budget didn't give any direction to REIT, however, this direction is not entirely dependant on the budget, and the same can be announced even otherwise. This budget will help increase the domestic consumption, and will also provide a platform for sustainable economic growth. This will also benefit the overall development and growth of tier II and II cities, which are in the process of becoming the global cities of future.

Rating : Not Rated

I like the budget for its focus on reducing personal income tax and for reducing excise duties (on cars, etc). Bringing the fiscal deficit down is also very welcome. The budget should reduce inflation. I welcome the increase in short term capital gains tax - while it is an unpopular move and the market has reacted negatively to it, it is useful for small investors because it would reduce the volatility of the market and incentivize investing for the long term. The budget should be good for banking sector as it might help in reducing interest rates, thanks to reduction in deficit and anti-inflationary measures. The budget has focused entirely on the end consumer. It benefits businesses only to the extent that sectors where there are excise duty cuts - volumes should go up. What is completely lacking in the budget is any measure towards increasing our export competitiveness especially in light of the rising rupee and looming recession in the US and a slowdown in Europe.

Rating : 6 / 10

Higher outlays for Bharat Nirman, irrigation projects, mega power projects, rural housing, etc, will help in infrastructure development. Together with excise duty cut for auto sector, it will spur demand for steel. Reduction in CENVAT from 16% to 14% will also help in containing the cost of steel, especially for construction purposes. Customs duty reduction on project imports will have a favourable impact on capital costs, at a time when the steel industry is undergoing massive expansion. We welcome the special initiatives and measures relating to skill development and higher education, which are critical from the point of view of long-term needs of the entire manufacturing sector.

Rating : Not Rated

Despite long requesting for the rationalisation of the excise duties on the various segments, but it was disappointing to see that our request on uniform excise tax has been neglected for yet another year. Reducing the excise duty on the small cars alone has actually widened the gap between small and other car segments. The excise duty on the mid-size car now stands at 24%, double that of a small car, which is disappointing for the customers of mid-size and larger cars. Though reduction in corporate taxes and customs duties, which automobile industry were eagerly been awaiting for, is another miss in the budget. But reduction in customs duties for project imports will benefit us and is a welcome step, especially in light of Ford India's recent expansion and growth plans. There have been no significant investments made for improving roads, ports, etc, other than focus on the power sector. This budget primarily focuses on social sectors, health and education. On an overall positive side, the budget offers significant income tax exemptions to the salaried, which will help put more disposable income in the hands of consumers. This will result in the growth of consumer spending, and may benefit the auto sector. To compete with the global economies, India needs a lot attention towards infrastructure.

Rating : Not Rated

The budget has provided relief to the farming sector and to the common man but missed out in providing something substantial to the industry. The 2% reduction in the CENVAT is a welcome relief. The sum of Rs 800 crore provided to the Accelerated Power Development and Reform Project along with the setting up of the National Fund for transmission and distribution reform will leverage the power distribution companies to reduce T&D losses. While we share the same ideology of a clean and green environment, there has been no provision like reduction in the duty cut in CFL bulbs which are instrumental in this regard. The issue of high duty on raw materials and other inputs that goes into the production of CFLs is still at a high rate of 14% making it costlier for the masses to adapt to.

Rating : Not Rated

The Union Budget 2008-09 essentially has a rural flavor as significant emphasis has been placed on inclusive growth. Greater focus on education and health especially for the rural sectors as well as significant thrust on agriculture reiterates the finance minister’s commitment towards an inclusive growth. Some of the key initiatives are: expansion of NREGS scheme to 596 districts which will positively impact study of various livelihood options for rural youth in horticulture, bio fuels etc. Increased allocation for RIDF (Rural Infrastructure Development Fund) will help rural roads and hospitals. In line with the rural focus of the budget, the outlay for Bharat Nirman was increased, which would benefit development of rural infrastructure, including roads, power, and water supply. The corpus of RIDF-XIV was also raised Rs.14,000 crore. Tourism and Hospitality have also received impetus through a provision of five year tax holidays. A key positive take away is the rationalization of income tax slabs. This is a welcome step to revive consumption demand through higher disposable incomes available with middle income families which should stimulate demand for durables and non-durables, catalyzing the manufacturing sector in the process. We believe, the waiver of farm loans is a short term strategy without seriously addressing structural issues. However, this will greatly benefit the agricultural stakeholders by resuscitating farmers back into productive agriculture participation, as well as facilitate cleaning-up of banking portfolios. This should provide a significant multiplier to the agricultural community and extract them from a vicious cycle of indebtedness, with productive chanelising of their farming properties.

Rating : Not Rated

The fiscal budget FY 08-09 is a forward looking budget which provides boost to micro, small and medium enterprises across various sectors. The increased outlay towards education, health & agribusiness will provide impetus to SMEs primarily in education, fertilizer, infrastructure, life sciences & pharma sectors. The proposed custom and excise duty cuts will also help small manufacturers, IT electronic & hardware manufacturers, Gems and Jewelry units, Small and hybrid car manufacturers, Paper manufacturers and dairy segment. Furthermore, the impetus provided to Power and Infrastructure projects will benefit the OEMs and contractors related to these sectors. Special funds set up for Tea, Rubber and Textile sectors will also enhance growth of these sectors.

Rating : Not Rated