 "Industry expects \"good enough\" budget, gets it")
The big guns of industry came, made notes, ate breadsticks, watched bemusedly as two TV journalists came to blows over panelist Pawan Goenka, president, automotive sector, Mahindra & Mahindra, and then left quietly — not expecting much from the interim budget, not getting much either.
“Very ambivalent,” is how Satish Kaura of Samtel summed up his own and his colleagues’ mood. “(We are) Not very excited right now”.
Indian industry was united in the view that it didn’t expect much from P Chidambaram's budget with the government gearing up for elections.
Some saw a glimmer of hope in what Chidambaram promised, especially excise breaks for capital goods, and in better fiscal deficit numbers. But they said they would wait to see if the next government would continue with these measures.
“He has given a good enough direction — lowering of fiscal deficit, export orientation,” said Dhruv Sawhney, chairman of Triveni Turbines, who said the budget might prove to be good for the capital goods sector, which has languished for five years. But, he added, infrastructure and power generation were still a huge problem.
Similar sentiments were expressed by Sidharth Birla, president of FICCI: “It is heartening to see that the fiscal deficit and current account deficit has been contained. One good thing is that the Finance Minister has held himself back from any populist announcements.”
Harsh Pati Singhania, director, JK Organisation, chose to look at it differently. “The specific issue is the time it will take for the benefits to come in. This also means that the next government will have to continue to give push to manufacturing by cutting prices and boosting demand,” he said
A quick panel formed by CII and headed by its president S Gopalakrishnan evaded a question on whether the government had disappointed by not touching on retroactive taxation of foreign investment. In fact, Chidambaram has said more investigations would be launched against Indian entities holding accounts abroad.
But one sector that was happy with the budget was automobiles. “If we as industry need more relief than this, then we are in trouble,” said Goenka. “Of course, (we will cut prices). If we don’t cut prices, we are not doing our job”.
“Very ambivalent,” is how Satish Kaura of Samtel summed up his own and his colleagues’ mood. “(We are) Not very excited right now”.
Indian industry was united in the view that it didn’t expect much from P Chidambaram's budget with the government gearing up for elections.
Also Read
“As expected, largely a non-event, today being an interim budget,” said Subodh Bhargava, chairman of Tata Communications Ltd, and independent director on boards of several companies. “We saw a listing of 10 years of UPA’s achievements. To project a decade means that last year nothing happened. The government has nothing of last year to talk about.”
Some saw a glimmer of hope in what Chidambaram promised, especially excise breaks for capital goods, and in better fiscal deficit numbers. But they said they would wait to see if the next government would continue with these measures.
“He has given a good enough direction — lowering of fiscal deficit, export orientation,” said Dhruv Sawhney, chairman of Triveni Turbines, who said the budget might prove to be good for the capital goods sector, which has languished for five years. But, he added, infrastructure and power generation were still a huge problem.
Similar sentiments were expressed by Sidharth Birla, president of FICCI: “It is heartening to see that the fiscal deficit and current account deficit has been contained. One good thing is that the Finance Minister has held himself back from any populist announcements.”
Harsh Pati Singhania, director, JK Organisation, chose to look at it differently. “The specific issue is the time it will take for the benefits to come in. This also means that the next government will have to continue to give push to manufacturing by cutting prices and boosting demand,” he said
A quick panel formed by CII and headed by its president S Gopalakrishnan evaded a question on whether the government had disappointed by not touching on retroactive taxation of foreign investment. In fact, Chidambaram has said more investigations would be launched against Indian entities holding accounts abroad.
But one sector that was happy with the budget was automobiles. “If we as industry need more relief than this, then we are in trouble,” said Goenka. “Of course, (we will cut prices). If we don’t cut prices, we are not doing our job”.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%