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R Seshasayee
Ashok Leyland [Get Quote]

It is a very responsible and mature Budget

Pawan Munjal
Hero Honda

There are three or four disappointments in the Budget. Things that could have been done, which has not been done include; labour reform which is a crying need today in India. He spoke of it yesterday but there was no mention of that today.

 He talks of subsidies in the Budget but there was no mention of where they would actually get reduced or cut down; and that's little bit of disappointment. That's something he could have done while he was doing so many other things. I think, announcing FBT with minor modifications is still not a good idea.

Kiran Mazumdar-Shaw
Biocon [Get Quote]

I am most disappointed to see that the budget has not provided for incremental investment in Science & Technology. Research & Development is seen as the next big opportunity for India Inc. To establish India as a laboratory of the world, fiscal policies need to support the high investment needs and the long gestational timelines of this segment. Industry has been seeking fiscal support through a 5 year weighted tax deduction, lower duties on R&D consumables and Equipment - to be on par with other competing nations; and duty free import of enabling technologies to promote collaborative R&D.

Pawan Munjal
Hero Honda

One of the things we have been saying for sometime is that the Budget should become a non-event. It really should be a statement of account of the government, and I see us heading in that direction. Discussion that we had five years ago around the Budget and today are very different.Sunil Mittal
Bharti Enterprises

I think he clearly recognizes that the taxes are already at levels which are good , sustainable and yet serve the job. He is also very clearly mentioning that we want to align service taxes and CENVAT, so that some adjustments have gone there, not many people have noticed that, 2% service tax.

To my mind this is a remarkable Budget, considering a number of schemes, the number of outlays that have been announced and yet when you see the revenue deficit, 2.1%, it is an amazing job. It is a very-very well balanced Budget. There has been no major hit in corporate fields. Number of schemes have been rolled out. Fiscal deficit remains less than 4%.

Amit Chandra
DSP Merrill Lynch

Another point which really strikes me is the significant increase in outlay on social development initiatives. If this economy really has to hit the 10% mark that everyone is targeting, the only way we are going to reach there is by making the economy more and more inclusive and increasing outlays on things like education, rural connectivity whether it is through irrigation, greater roads, or more electrification, and I think all this is a great positive.

Nimesh Kampani
JM Morgan Stanley

The Finance Minster has introduced MAT at 10%. When a private company shares its shares which are not listed company shares, one pays MAT tax even if one has put the money in three years bond.

Finance Minister said that this 10% will also be applicable to the shares which are listed company shares sold by the investor. If that is true, then in effect the Finance Minister has introduced a 10% long-term capital gain tax through the MAT. I think we need clarification on this because he only made a small remark.

Whether he removed the long-term capital gain from the unlisted companies, or he levied the tax on the listed companies through MAT, all this requires a greater clarification.

The FM has done a great job on fiscal deficit. In 2006-2007, it is going down to 2.1% on revenue deficit and 3.8% on fiscal deficit. I think that is very good on the long-term basis because that will really help the government's financing. Everybody abroad is talking about why government's fiscal deficit is so high, and whether we will get into the internal debt trap. But the Finance Minister has done a great job to make sure that this deficit percentage is coming down.

Amit Chandra
DSP Merrill Lynch

For me the most important striking feature of the Budget is that it's becoming a non-event and that is a sign that the economy is rapidly moving from developing to developed. The fact that we have a very stable tax regime speaks well for investment and for the industry.

A couple of other indicators like; there is a clear recognition by the Finance Minster that we possibly have a liquidity crises ahead of us, and he created a roadmap for keeping interest rates under check to avert such a prices by starting with a small increase on FII investment in corporate debt, and in government securities.

I believe that, that window will be gradually opened up more and more as we head into the year and as the credit squeeze becomes tighter and tighter. So in a nutshell, it is a very positive statement of the government's finances which clearly seem in great order.

Another point which really strikes me is the significant increase in outlay on social development initiatives. If this economy really has to hit the 10% mark that everyone is targeting, the only way we are going to reach there is by making the economy more and more inclusive and increasing outlays on things like education, rural connectivity whether it is through irrigation, greater roads, or more electrification, and I think all this is a great positive.

For me the most important striking feature of the Budget is that it's becoming a non-event and that is a sign that the economy is rapidly moving from developing to developed. The fact that we have a very stable tax regime speaks well for investment and for the industry.

A couple of other indicators like; there is a clear recognition by the Finance Minster that we possibly have a liquidity crises ahead of us, and he created a roadmap for keeping interest rates under check to avert such a prices by starting with a small increase on FII investment in corporate debt, and in government securities.

I believe that, that window will be gradually opened up more and more as we head into the year and as the credit squeeze becomes tighter and tighter. So in a nutshell, it is a very positive statement of the government's finances which clearly seem in great order.

Vallabh Bhansali
ENAM Financial Consultants

When the Index is already at 10,000 lot of the expectations are discounted and I would not worry about short-term aberration in the market.

When the economy is already growing at 8% plus and the target is 10%, then we have to boost demand. The FM has tried to do that with several measures although they might look marginal at this stage. The important thing to do is that we need to extend the feel-good to the rural areas and therefore we have to see a series of measures that are going to the rural areas.

I think most people want clarification about MAT, but on the whole, one should look at it with happiness because the policy parameters have been set for sometime and FM has not rocked the boat. This is the first time after many years that I am seeing great alignment between where the market is and what the economy is doing and the FM's vision.

My view is that except for oil sector, where there is the big subsidy bill, most of the things were on the expected lines.

Uday Kotak
Kotak Mahindra Bank [Get Quote]

This is a positive Budget at the macro level. You have seen correction in both fiscal and revenue deficit for 2006-07. The revenue deficit is coming down to 2.1% and fiscal deficit is coming to 3.8%. This is very positive on a macro level.

If the markets were looking for some immediate props - I do not think most of us expected any immediate props for the market place - therefore this is a Budget for a long-term investor in the Indian economy and the short-term trader will have to ride with the day to day volatility of markets.

This is really a Budget, where I remember Greenspan phrase, "Do no harm to markets" and the Finance Minister has taken that seriously. Vallabh Bhansali ENAM Financial Consultants My view is that except for oil sector, where there is the big subsidy bill, most of the things were on the expected lines.

Manish Chokhani
ENAM Securities

Market did not expect a lot from this Budget and he hasn't disappointed us. It seems to be a non-event, which is probably the way it should be.