The Federation of Indian Chambers of Commerce and Industry has welcomed the Union Budget as well conceived, constructive, progressive and growth-oriented.

FICCI president A C Muthiah said the budget is over all impressive. He said the Finance Minister has successfully touched upon tax simplifications, and has also brought in deduction on excise duties, 'which will certainly create more demands.'

He also welcomed the minister's support given to big employers like textiles, germs and jewellrey.

However, Muthiah said, "Some areas of agriculture could have been touched upon. It needs more boost than what is given."

Comments from various sectors

P M Sinha, chairman of the agri-task force of FICCI: "We were very enthused that agriculture was among the first five priorities. And if that is so, then only providing Rs 50 crore for hi-tech diversification isn't enough. One would have expected a lot more expenditure in agri-R&D and agri-biotechnology work and in the entire diversification programme."

"One had expected a far more robust support to agriculture than the Rs 50 crore provided. Of course Rs 500 crore for the plantation industry stabilisation is very useful. But giving agriculture among the first five and then leaving it almost without serious support is worry."

Rajan Bharati Mittal, Joint Management Director, Bharati Enterprises on Telecom: "I think clearly this morning report said the group of ministers have cleared the 74 per cent which has not been spoken of in the budget."

"Obviously the cabinet meeting will clear it. I think it is a big step, and we have seen infrastructure per se has been given a great emphasis. And telecom being part of it, we will see some more investments coming in."

"Telecom duties on the capital goods have been rationalized, this will help the handsets which have been really highly pegged without manufacturing being done here. Overall on the infrastructure side including the telecom this seems to be a good growth budget."

Yogendra Kumar Modi, chairman, YKM Holdings, and senior vice president of FICCI: "The good points have all been mentioned. If more money would have been left with corporations, especially in way of reducing taxes and also the reduction of surcharge on corporates have been taken away by imposing dividend distribution tax."

"So virtually the investible funds generated within the corporations will not get any boost. And secondly, I thought even some excise duties have been increased, though our FICCI study has indicated that lower the excise duty, higher the tax collected. In spite of that more than Rs 3,000 crore has been mopped up by increasing the excise duty. I don't know how far that would go in promoting growth."

Sushil Ansal, Ansal Properties, and Chairman of FICC's Housing Committee: "As far as housing in concerned I think one very important decision, which has been conveyed, is that the infrastructure status to housing has been extended to 2005."

"I only wish they had given a longer time schedule, then planning of investment would have been better. I hope that this would also be clarified, whether infrastructure status would go up to 2010."

"Second, the concession of tax exemption up to Rs 1.5 lakh on interest paid on borrowed capital has been continued. I think this is a good step."

"Apart from housing, drinking water supply that he has announced today is a very innovative step. He ahs said that drinking water supply, 100 per cent depreciation would be given on building and machinery and equipment installed for safe drinking water. It is a good step."

"And the lower interest regime on housing will also continue, that has also been indicated generally by him."

"These are good steps and this would definitely boost housing and on housing so many industries are dependent. In other words, it would help the revival of the economy."

K Cherian Verghese, CMD, Corporation Bank: “The government proposal to buy back the government securities is providing an opportunity to the banks to clean up their balance sheet. It is a very welcome step.”

"Also, banks now have to benchmark themselves against global standards because more players are going to come in with 74 per cent equity stake permitted."

"And 10 per cent voting right is going to go away, which means Indian banks will have to gear up themselves in terms of efficiency, to provide services in terms of price and delivery according to the global standards."

"We are also fairly relieved that he has retained the Rs1.5 lakh exemption on housing loans, which is one segment, which has been very vibrant. In fact it indirectly helps all the industry."

"I am also particularly touched by his gesture of providing Rs 12,000 exemption for children's educational expenses. These are all steps, which will help the nation in the long run to build up the necessary talents within the country."

D G Shah, Secretary General, Indian Pharmaceutical Alliance: "I think this is the best budget for pharmaceutical industry in the last three years."

"IT gives a big boost to the pharmaceutical industry, what has not come out here is what we were asking but its implications are not clear here. That pharma will be treated at par with IT industry."

"All the imports for R&D were being taxed at 55 to 60 per cent, which IT was eligible to import at 5 per cent customs duty. So this is a major boost."

"Second, income derived from intellectual property overseas by way of royalty etc will also be exempted from IT."

"Besides, for consumer life saving drugs will be exempted from excise and customs. Which will again be a welcome step."