According to Mohandas Pai, chief finance officer, Infosys Technologies, ``the sops offered to the information technology industry are welcome and the setting up of an IT Commission is an encouraging development.''

Linking of the employees stock option schemes to ADR and GDR issues specifically for information technology companies is also an encouraging development, he added.

Som Mittal, managing director, Digital Equipment (India) Ltd, said `` though the customs duty on telecom software and telecommunication equipment has been reduced to 30 and 20 per cent respectively, duty on computer parts reduced to 12 per cent and duty on floppy disk drives, hard disk drives and CD-ROM reduced to 5 per cent, this has been nullified by the proposed additional non-modvatable import duty of 8 per cent which willhamper the bottom lines of the software companies in India''.

He further said, ``We are going back to our olden days with this kind of a budget and a non-modvatable import duty of eight per cent, a 10 per cent depreciation on the rupee and an inflation rate ranging between five and seven per cent will force the country to take reverse gear''.

On a more positive note he said that some companies may bring down the cost of computer thanks to the Union Budget.

Commenting on the budget, Atul Vijaykar, director (South Asia), Intel Corporation, observed that the government has recognised the importance of information technology in enabling India's continued economic development. This is apparent by the announcement of setting up a high-powered Information Technology Commission and also by lowering of duty on IT products.

In Kerala, the budget evoked mixed reactions though the proposals do not include anything for the state to cheer.

The state's demand to increase import duty of natural rubber andpolyurethene has not been considered by the finance minister.

At the same time, the decision to reduce import duty of caprolactum by 5 per cent will not be in the interests of Fertilisers and Chemicals Travancore Ltd (FACT), the premier public sector undertaking in the State. Reduction in the import duty of newsprint by 5 per cent will also be a setback to the Kerala-based Hindustan Newsprint Ltd.

J Naryanamurthy, chief of the petro-chemical division FACT, said the company was yet to gather the full details of the new duty structures. He said the decision to reduce import duty of caprolcatum would not have any immediate impact on the fortunes of the company. The finance minister also ignored the demands of the State to increase the import duty of products like titanium dioxide.

The trade bodies and Chambers of commerce have welcomed the Budget, calling it growth-oriented. Ernakulam Chamber of Commerce has welcomed the decision to withdraw service charges on transport, pandal and catering. The chamberwelcomed the hike of income-tax limit and concessions to the SSI sector.But the proposal to hike the price of petrol would lead to price rise, said chamber president Sebastain Koluthara.

He described the private participation in the insurance sector and the Indian Airlines as beneficial to the economy.

The Indian Chamber of Commerce and Industry has also welcomed the Budget proposals aimed at overall development of the agriculture sector and rural economy by increasingly involving the State Governments and Nabard. Chamber president G P Goyal lauded the decision to allow futures trading in edible oils and oilseeds to help capital formation with increased private investments, including NRI funds in industries and to make FDI hassle-free at the national and State-levels.

The proposals to raise the cost of petrol by Re 1 a litre and of urea by Re 1 a kg could have been avoided in view of the cascading effect on prices, Goyal said.

The chambers welcomed the reliefs provided for the small scale sector andthe attempts to develop infrastructure facilities like energy, transport and communication. Raising the limit of personal taxation and introduction of additional import duty of eight per cent in respect of certain items to help indigenous industries are some of the welcome features of the Budget.

Meanwhile, the textile industry has expressed disappointment disappointed following the absence of the much-awaited announcement of textile upgradation fund in the Finance Minister's Budget speech.

Senior sources in the industry claim that no specific sops have been provided to the industry which continues to reel under one of the worst ever crisis. However, the industry has welcomed the decision to set apart Rs 60 crore towards cotton technology mission.

The Tirupur Exporters' Association (TEA), however, felt that the government should have allotted at least Rs 250 crore for the mission. The industry is all praise for the decision to abolish service tax on the transport sector.

A Sakthivel, TEA President,sought the removal of the proposal to levy 8 per cent excise duty on sewing machines. He urged the government to extend the concession provided to the leather industry on import of specified machineries. ``The much-awaited excise concession on cotton yarn and fabrics to revive the textile industry is conspicuously absent,'' Sakthivel said.

He welcomed the proposal to increase credit availability for SSI sector, enlarged role for Sidbi, replacement of Fera by Fema and use of provident fund for private sector investments. He praised the Minister for his announcement to free the Indian industry from the clutches of ``inspector raj''.

The plantation industry here has criticised the announcement of the Finance Minister to impose 8 per cent excise duty on packet teas.

According to sources in the industry, the decision to revert to the earlier duty would cost consumers dear as the industry would not be in a position to absorb it. Currently around 200 million kg of packet tea is sold in the domestic market(around 40 per cent of the total consumption).

``Those who have the option to shift to loose tea would do so. But the packets ensure good blends and are less adulterated,'' the sources said. They did not rule out the decision being aimed at a leading MNC player.