The Overall reaction from the Industry in general and Industrialists in Pune on Budget 2001 was good, but some felt that Mr. Sinha could have done a bit more for their industry.

Here are the reactions from Managing Directors of a few well known companies based in the city:

Mr Murali Santhanam, M D, Jobcurry Systems Private Limited

Mr.Santhanam was happy to note that Mr.Yashwant Sinha had reiterated the importance of sustained positive growth of the software sector. The budget ,had , according to him,rightly addressed critical issues such as the need for Quality technical education and improvement in infrastructural facilities.

The proposal to set up new IITs and engineering colleges as well as boost efforts at achieving computer literacy fulfills the need of the hour. These measures, opines Mr.Santhanam, will contribute towards meeting the IT industry’s requirement for quality IT professionals.

He also welcomed Mr.Sinha's’ plans to introduce the convergence bill, the reduction in customs duty on IT and telecom products and allowing Indian companies overseas investment upto 50 million dollars.

Mr Hemant Karandikar, MD, Global Weighing India Private Limited

Mr Karandikar welcomed the tax benefits accorded to infrastructure and further benefits to Grain Storage and handling related construction activities. These incentives, he felt, would give a boost to development of infrastructure and reforming grain trade .
Mr.Karandikar also felt that the tax concession given to the food processing sector was a step in the right direction.
For an engineering industry one has to see the specifics on tariffs for items of interest . .He was of the opinion that raising excise duty and lowering customs duties is wrong and unfair for any local manufacturing unit.. The tax laws ,according to him,continue to be very complex . Simplifications in his opinion has been paid only a lip service

In general a very much bureaucrat's budget: evidently they love the power and ability to control or do favors was
Mr Karandikar's frank opinion..

Mr J P Singh, Managing Director, Bausch & Lomb Eyecare India Ltd.

While the budget, in Mr.Singh's opinion,seemed positive, particularily due to the increased allocation to Healthcare and Education , he confessed he was looking for specific initiatives for the eyecare industry. In his opinion, facts as glaring as India being home to 25% of the world’s blind and over 50% of the people who require vision correction not even aware of it cannot be ignored.Specific focus from the government in this particular direction was urgently required. He his happy however that the eyecare industry has taken the initiative by diverting substantial funds in this direction with Bausch & Lomb leading the way with awareness campaigns running for the past one year across the country.

From the perspective of the eye care industry, he said he was looking forward to a relaxation of the excise duty on Contact Lenscare Solutions from the existing 16% to 8% . which did not materialise. This is particularily pertinent due to the enormous increase in the usage base of Contact Lenses . The higher prices of lenscare solutions will lead to it being used sparingly and this, he feared ,can lead to complications.

Mr L C Singh , President and C.E.O. Nihilent Technologies

  This is what Mr.L.C Singh had to say " It is positive for industrial growth.  It favours definitely Information and Technology industry and the steps have been taken to the next logical point. The budget is certainly a pro stock market.  The only guard is that there seems to be a large uncovered deficit in the budget".

 Reactions to the budget in the words of Mr Sudhir Mehta "The Union Budget of today carries forward the process of reform and will provide excellent impetus to the growth of the limping manufacturing sector. This kind of Budget has the potential to turn the limping athlete to a strong long-distance runner. The new Policies of the Budget will usher in a more positive and enhanced outlook for the Indian economy in the year to come.

For the Furniture Industry, the Budget will provide for an increased presence of the Organised Sector, which, today, constitutes a very small percentage to the overall Sector."

Mr. Mohan Bhandari, MD Bhandari Industries Limited.

And this is how Mr.Bhandari reacted"The budget delivered today by the Finance Minister is overall a good budget in the given frame of the economic situation. It has been a good attempt to boost the economy keeping in view the long term macro economic objectives and growth prospects of our country, both domestically and internationally. However more firm and drastic steps are required to bring about the double digit growth in the country.The budget may not bring about significant change in the investment climate in the economy nor does it offer sufficient boost to investment. Further freedom and impetus is required to be given to ntrepreneurs/investors. Strong steps to give  the required push for growth are missing. However the abolition of surcharge on corporate tax as also the reduction of tax on dividends on corporates. The abolition of surcharge on customs duty will go a long way in reducing costs and thereby augmenting the bottom line directly.  Besides there are several welcome actions proposed to be taken by the government to revamp the government machineer and make it more professional and competent."

Text: Rahul Surkund