The Hindu Business Line : Sunday, March 02, 2008

Lacking in depth, vision
Chennai, March 1 ‘A Russian circus, run not on dream or design, but on sheer desperation’ — this is how Mr V. Ranganathan, Partner, Ernst & Young, dubbed the Union Budget 2008, calling it “an amazing ... More

Farmer and pharma budget
Overall the Finance Minister has failed to announce any major policy decisions. With the elections looming ahead, political agenda has dominated the budget. Agriculture and pharma have proved to be the major beneficiaries. For the auto component ... More

Betting on purchasing power of common man
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Not much for exporters
No visible action has been taken by the Finance Minister to help the exporting community which is suffering on account of the strengthening of rupee against dollar and the economic slowdown in the US. Measures recommended by the Commerce Ministry ... More

Some relief on taxation front
Relief has been provided under personal taxation. There are no changes in the corporate tax, MAT as well as DDT rate. Marginal relief has been given to the ultimate holding company while declaring dividend, by way of setoff of DDT paid by its ... More

Powering ahead
The creation of a national fund for power transmission and distribution reforms, as well as the stated policy of speeding up bidding for another 5 ultra mega power projects (UMPP) also augur well for the power sector. The appointment of a coal ... More

Silent on employment
The Budget 2008 seems to be euphoric in nature. Since the waiver of loans to small and marginal farmers amounts to around Rs 60,000 crore, which I feel would make it difficult to contain the impact of inflation it will produce in the long run. As ... More

Housing aspirations
While there is 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 hear the Finance Minister talking about clean and green technology, and paving the way ... More

Bad for banking industry
The proposal to waive bank loans to the extent of Rs 60,000 crore has unfortunately been welcomed by public-sector bank chiefs. The Finance Minister should know that farmers who have repaid their dues promptly would feel foolish. The ... More

Shielding the growth story
It’s truly an aam admi budget which has taken good care of lower and middle income groups along with young entrepreneurs. This will go a long way in providing further impetus to the overall growth of the economy. Increase in ... More

2-wheeler industry gets a boost
Budget 2008 is undoubtedly based more on political considerations than on economic rationale. Reduction in excise duty on two-wheelers by 4 per cent coupled with reduction in central sales tax by 1 per cent will give a boost to the two-wheeler ... More

Concern for individual taxpayers
Sops for individual taxpayers are one of the positive aspects of the Union Budget. The FM is to be congratulated for his concern for individuals. However, there is no thrust to savings as the limit under Sec 80C remains unchanged at Rs 1 lakh. ... More

Friendly to individual taxpayers
Budget 2008 has largely kept the upcoming elections in mind. It was therefore no surprise that at the macro-level the allocation for health and education was higher and there was renewed emphasis on agriculture and irrigation sector. The ... More

Smiles for aam admi
The budget has pleased farmers and the aam admi. Besides waiver of farmer loans, measures such as enhanced agricultural credit target, investment in irrigation facilities will help uplift agriculture sector. Increased allocation for ... More

Stress on IT penetration
Full credit to the Finance Minister in balancing various competing requirements and making some bold announcements that benefits the important sectors of education, health and agriculture. We welcome the increased allocation to education sector ... More

Fillip to skill development
I welcome this as a very balanced budget, one that is likely to fuel inclusive growth in India. I am particularly delighted to see the continued focus on improving quality of learning through Sarva Shiksha Abhiyaan. This will directly impact ... More

Promoting care of parents
The increase in the income-tax exemption slab will in a way help households manage against the rising prices of essential commodities. The waiver of agricultural is a welcome move, but it must be understood that the major cause of farmers’ ... More

IT hopes not met
For IT industry this is neutral budget. No measure has been taken to support industries suffering on account of rupee appreciation and the likely slowdown in the US economy. Rationalisation of FBT on ESOP, reduction in corporate tax and dividend ... More

Little cheer for IT
There is little to cheer for the IT industry in this budget. There is no worthwhile mention of schemes to incentivise the IT hardware sector. Perhaps rightfully so, the FM has left the software sector to handle its challenges on its own after the ... More

Enabling IT inclusion
The Government has delivered a progressive budget by focusing equally on infrastructure and rural development, education, healthcare and employment generation, with proposals to help create a climate for balanced growth. The vision to ... More

Focus on knowledge infrastructure
Overall the budget focuses on enhancing long-term economic growth through stronger investments in social infrastructure. Investment in education not only for spread but also improvement in quality is encouraging. The setting up of additional IITs ... More

Stimulating consumption
The budget has made a serious attempt to stimulate consumption demand by reducing indirect taxes on consumer durables like small cars, two- and three-wheelers etc., and by raising the personal income-tax exemption limit.Besides, the bulk ... More

Healthier outlook
Being a pharma manufacturing company, we welcome the cut in excise duty from 16 per cent to 8 per cent. The move would help the industry and also benefit the end customer; the social impact of this reduction is positive as it would make ... More

Long-term positive for IT
It is a positive budget for IT industry as a whole. The expected extension of tax break for IT hasn’t happened. I believe that is not such a bad thing. The industry was fairly reconciled to the idea that it is mature enough and it is high ... More

Average budget for stock markets
People had low expectations going into this budget. It’s an average budget from stock-market perspective. It’s in line with last year’s budget except that this year the Finance Minister has tried to fill in a lot of ... More

A budget that pleases all
This year’s budget is outstanding in every way. The Finance Minister has tried to satisfy everyone, from common man to corporates. The cut in excise duty on small cars and two-wheelers is a welcome move for the industry and the common man. ... More

Uniform CST good for supply chain
Our industry has been impacted due to the low abatement rate for MRP-based excise duty. We need to see the finer details on this. Uniform CST is welcome and makes the supply chain simpler to operate. The budget has not addressed the special ... More

Focused on the right issues
This has been a balanced, disciplined and responsible budget. There had been a fear that it may turn out to be populist with the elections up next year. But these fears have been allayed as the budget continues the momentum of growth and focuses ... More

Need to educate farmers
Personal income-tax concession is a welcome announcement which will benefit our employees. Rather than waiving farmer loans, if only the Government had invested in educating farmers on optimal utilisation of available resources and trained them ... More

Auto industry sees positive impact
The Budget has evoked mostly a positive response from the automobile industry. About large cars: The General Motors India President, Mr Karl Slym, has said the company expected duty reductions for all types of cars. ... More

Companies hail hike in education outlay
Chennai, March 1 As the Finance Minister announced increased allocations for the education sector, by about 20 per cent to Rs 34,400 crore, the television screens flashed green on all education sector stocks. With Rs 13,100 crore being ... More

‘A populist Budget’
Mr Tulsi Tanti, Chairman and Managing Director, Suzlon, said: “It is a positive Budget, having growth momentum. It is also a populist Budget keeping in mind the elections.” The Finance Minster has balanced the requirement of the ... More

‘Budget will drive consumption’
When asked for his reaction on the Budget, the Senior Vice-President of Sharekhan Ltd, Mr Hemang Jani, said: “Budget is positive for companies in the auto, infrastructure and pharma space and would positively affect the corporate ... More

CONSUMER ELECTRONICS
Farm loan waiver may fuel demand for consumer goods
A majority of the industry believes that it is worth sharpening its focus on the vast untapped rural market after the Budget proposal. More

ECONOMY
What has the Budget done for growth?
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ENVIRONMENT
Waking up to driving in the future
It could be every big-car lover’s nightmare come true. But reality, as they say, is often stranger than fiction. Cars revolutionised transportation in the 20th century. However, with the current concern over the effects of vehicular pollution, is the future of personal mobility, as we know it today, in jeopardy? Our take on what the world could be driving two decades from now. Thankfully, right now it is only a bad dream. More

PSU
Air India begins work on maintenance centre
To set up base for domestic flights in Thriruvananthapuram More

PETROCHEMICALS
‘Duty on naphtha will hit Haldia Petro bottomline’
Kolkata, March 1 The Union Budget proposal for re-imposition of five per cent import duty on naphtha for petrochemical production seems to have found its single largest casualty in West Bengal government-promoted Haldia Petrochemicals Ltd ... More

PHARMACEUTICALS
Medicines will be cheaper, but not consumer goods
Drugmakers to cut prices by 5%, except those made in tax-free zones More

TAXATION
It’s less taxing times for the salaried
Budget 2008 More

Meeting expectations
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COAL
Proposal on dividend tax: Coal India sees Rs 200-cr gain
Kolkata, March 1 Elimination of the scope of double taxation on corporate dividends would help Coal India Ltd (CIL) to net a clear Rs 200 crore beginning fiscal year 2008-09. CIL has seven coal producing subsidiaries contributing to the ... More

EDUCATION
TCS setting up learning centre in IIT Guwahati
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REAL ESTATE & CONSTRUCTION
Balancing act in a pre-election year
The Finance Minister, Mr P. Chidambaram, has taken to the populist path, trying to gain the common man’s confidence while keeping an eye on global slowdown signals.On the one hand, the Government is trying to rein in inflation by ... More

SCIENCE & TECHNOLOGY
ISRO’s manned space mission gets Rs 125-cr allocation
Bangalore, March 1 Indian Space Research Organisation’s (ISRO) human space mission proposal has got its first significant budgetary share, Rs 125 crore, while the Department of Space has got 24 per cent raise in outlay for its 2008-09 ... More

SOCIAL WELFARE
PDS ‘smart cards’ a manna for vendors
Demand pegged at 200-300 m in next five years More

Encrypted data to ensure rations
Imagine this scenario. Your maid borrows Rs 50 to buy rations. The shopkeeper says there is no stock, and she goes back disappointed. That the Rs 50 is spent on something else is another story. At the end of the month, her rations remain ... More

INCOME TAX
Here’s how the Budget affects you and me
For those of you who have just begun your career and are wondering why the Budget hogs so much of the limelight, here is a quick guide. We talk about how the Budget can affect you, as a salary earner, consumer and investor. ... More