V N Dhoot, chairman, Videocon group summed up the emotions of the supporters of the move when he said: "This is a Swadeshi budget for Swadeshi industries. Hike in import tariffs is a welcome step as it will help domestic industry."

However, Karsanbhai Patel, chairman and managing director of Nirma Ltd, had an opposite view. He said: "Instead of a flat eight per cent levy of import duties, it could have been more appropriate to make it item-wise, linked to domestic value addition and the domestic production capacities, that is, it should have been lower for raw material and higher for finished goods, that is, maximum permissible gap should be created to each class of items."

YH Malegam, senior partner in SB Billimoria & Co, pointed out that exports had been neglected. "Thegovernment appears to have totally forgotten the export front. With no major policy measures for the export sector, the country's exports will definitely take a beating."

Malegam pointed out: "This year will be very difficult for the exporters in the wake of the South East Asian crisis. The country will face a lot of competition from South East Asian players, which will ultimately lead to a drop in exports. Engineering projects will be affected. Chemical sector will also have to bear the brunt. Budget has several positive points in the form of higher allocations for health, education and infrastructure. Maintainance of status quo on direct taxes and opening up of insurance sector are welcome steps."

Anil Singhvi, the treasurer of Gujarat Ambuja appeared to agree with Patel that the "mundane" budget had fallen short of expectations on this front. "The flat eight per cent duty is not right, it should have been selective," said Singhvi, "this across-the-board hike will make Indian industry lethargic,complacent and make them less competitive."But on the whole, the family-owned groups appeared to be fully supportive of the import duty. "The countervailing duty is appropriate given the state of the economy, it gives Indian industry breathing space," said Kumarmangalam Birla, chairman of the AV Birla group.

Dilip Piramal, chairman of VIP group of companies, asked why capital goods imports had been exempted from the scope of the levy.