Dilip Piramal, chairman V.I.P Industries and Blow Plast Industries: The impact on the bottomlines of companies cannot be evaluated immediately. The absence of increase in direct taxation is a good thing. However, it is not understood as to why capital goods has been left out from the 8 per cent non-modvatable duty. There is no proper indication as to what "rationalisation" has been brought about in terms of excise levels. There has been no announcement which can change the borrowings cost programme. Economy has a whole is picking up.

VN Dhoot, chairman,Videocon: Hike in import tariff is a welcome step as it will help the domestic industry. Concessions given to exports, infrastructure & SSI will benefit industries as a whole in long term reduction in income tax at lower slabs and also to salries class will increase the demand for consumer items. Benefits given to computer software and electronic industries will increase the productivity in industries.

Ravi Jain, Managing director, Shawaallace & Co: The budget is a reflection of an underlying national consensus on issues of critical economic significance regardless of political or ideological affiliation. This will send disturbinhg signal to international investors. There are various measures in the budget that directly or indirectly promote investment in infrastructure sector and may boost demand.

RP Goenka, chairman emeritus, RPG enterprises: It is a good and positive budget. A bold decsion regarding Psus.

Sanjiv Goenka, vice chairman, RPG enterprises: Union budget isconstructive and imaginative. the finance minister has dared to address many fundamental areas like irrigation, eduacation and housing. By not changing direct taxation, it has provided growth for the corporate sector.

Desh Bandhu Gupta, chairman and managing director, Lupin Laboratories: To a layman there could have not been better benefits on the personal taxation front. By imposing an eight per cent non-modvatable import duty, the finance minister has tried to achieve twin objectives of protection to the Indian industry and offering it a level playing field while curbing imports.The budget also makes a good effort to widen the tax payers' base so that the country's development is shared by several people.

DD Rathi, senior president, Indian Rayon: This year's budget has been a modest effort by the finance minister under the given circumstances. The administratic reforms are long overdue and will go a long way in instilling the required confidence. The widescale use of PAN is a welcome step,but efforts should be made to see that the move is not misused. However, the imposition of eight per cent coutervailing non-modvatable duty, can go both ways. While Indian industry will stand to gain because of the protection, input costs for many companies will shoot up.

Anil Singhvi, treasurer, Gujarat Ambuja Cements: This a mundane budget which has fallen far short of expectations. The imposition of an eight per cent non-modvatable duty across the board will make Indian companies lethargic and complacent. The stock swap offered selectively to IT companies is not fair as many other service sectors are also doing pretty well. However, the most unfortunate part is that although the finance minister has spoken at length on the state of the capital markets, no major initiative has been announced to boost the primary market. The service tax is a retrograde step.

N V Iyer, partner, C C Chokshi & Co: Overall it is a good budget. The emphasis on enhancing rural credit is a positive move, but duecare should be taken so that the whole exercise does not become a loan mela. Service taxes, imposed on professional firms, are a necessary step. Since we are moving towards value added taxes, taxation of any value-addition exercise is logical.

Ashok Jain, managing director, Cadbury Scheweppes Beverages India Pvt Ltd: The bottomline impact will not be very significant. Yes, the petrol hike would be inflationery, but this was necessary. Price increases will not be significant. Investment opportunities have been created with annoucements like inviting private parties in the field of insurance which will make it more competitive, and the decision to disinvest in Indian Airlines which are the right signals.

Arvind Doshi, president and managing director, The Premier Automobiles Ltd: The imposition of Re 1 per litre on petrol for road development is a negative step taken by the finance minister Yashwant Sinha as there was no guarantee whether the revenue collected through this cess would beallaocated for road development. The general experience has been that such revenue was diverted elsewhere.

The voluntary retirement scheme exemption limit was given only public sector units and not extended to private sector while the finance minister has added various other categories for service tax.

Increased allocation to water, rural water supply, road development, education is really a positive feature. There has been no change in individual and corporate taxes and the finance minister has expressed desire to simplify and reduce litigation however, it needs to be seen on implementation. Saral, Samadhan and Sanman schemes are welcomed subject to proper implementation and the abolition of service tax on transport and outdoor caterers has been a positive step.

Sukumar Shah, president and director Mukand Limited: Expenditure not controlled and there was no deep cut on subsidies. There is every likelihood to lead inflation and eight per cent across the board hike is retrograde. There appears tobe adhoc in too many areas and there was no thrust on exports and savings.

Opening up of insurance sector is welcomed and excellent steps have been initiated for agriclture sector. PSU divestment, some sops for NRIs and increased outlay for social/educational purposes are positive measures.Shailesh Sheth, chairman, CII Capital Goods Committee and director Simtool Limited : The finance minister has miserably lost an opportunity to announce hard and bold decisions such as deep cut in subsidies. Contrary to that there has been substantial increase in subsidies. Though, the finance minister has taken an initiative to widen the tax net, he has lost an opportunity to take steps to cover high income agricultural farmers.

The increase in non-planned expenditure without provisions to facilitate savings would lead to excess consumption and this in turn will not be beneficial for the Capital Goods industry. The eight per cent across the board duty on non modvatable items will be to compensate local sales tax notapplicable.However, there are loopholes in the finance minister's statement of giving further exemption from that 8 per cent tax.

JM Lind, director Ispat Industries Ltd: Focus on infrastructure spending should have been supported by increased incentives for private, foreign and domestic developers to acclerate development. No incentives provided for foreign direct investment in infrastructure and no reforms for telecom and power were announced.

In light of recent events, it was expected that this government would present an aggressive budget to attract investment which is being limited by sanctions or otherwise distracted. The rupee has slid more than 7 per cent in the last two weeks. This budget will not result in a strengthening of the economy and therefore the rupee. Chidambaram is sorely missed and India will suffer for it.

Kantikumar Podar, past president FICCI: I welcome the budget. Looking at the compulsion before the country and also demand for support to Indian industry, some risein custom duties and excise duties were inevitable. However, selection of items has been done judiciously. Encouragement to housing sector, education, road, software, information technology and infrastructure is welcome. Need to widen the income tax base was necessary. Disholding of public sector shares including that of Indian Airlines and opening up of insurance sectors is laudable.

Overall deficit of 6.5 per cent GDP is high, but I feel some rise in inflation rate vis-avis developmental growth is more desirable. The role of SSI is approximately recognised and given necessary thrust in terms of excise and finance. To attract FDI, encouragement to NRI investment coupled with SBI Dollar Bond is very timely.

Bombay Chartered accountants society: As expected, the insurance sector liberalisation to domestic domestic private sector companies, inrtroduction of advance authority rulings for certain additional areas including excise and customs are welcome. Though efforts have been made to to provide alevel-playing field to Indian companies by trying to match the excise duty rates with the customs duty rates duty on imports thre is nothing dynamic to kickstart the economy.

Indian Merchants Chamber: YP Trivedi, president of Indian Merchants Chamber in his budget reaction said th at the finance minister has tried to balance his political philosophy with the country's economic imperatives in the union budget. He has tried to strengthen the foundations of the econmy . It is a realistic budget though it reflects some of the political complusions of coalition government.

Deepak Parekh, chairman, HDFC: We may see the inflow of foreign direct investment slowing down this year as there is nothing in the budget that encourages foreign investment. Instead of the targeted $6 billion all what we may be able to attract will be $2 billion or so, less than last year's figure of $3 billion, which is very insignificant compared to the $ 43 billion that China is able to attract. The new 6 per cent tax onbranded goods and the hike in customs duties, despite saying that it is not protectionist, puts across a message of discrimination to the foreign companies while being partial to the Indian companies. Overall, the finance minister has ensured stability and provided a steady budget. He has not gone back on the reform process. That is important. Though, the budget lacks the punch.