Tax holidays a good move
The Budget is a positive one, focussing on the growth platform. It isdefinitely a forward looking budget. The focus on infrastructure is welcome.The finance minister announced the national highway development programme.The overseas for ADRs and GDRs was also good as on capital accountliberalisation, Indian companies can now invest abroad up to $50 millionthrough the automatic route. Companies which have issued ADRs and GDRs canmake foreign investments up to 100 per cent of these proceeds. Thereplacement of SICA is very forward looking, and will benefit theindustry.The sops announced for information technology (IT) will help boost thegrowth in this industry. The minister announced the introduction of theConvergence Bill to cover telecommunications, IT and Information andBroadcasting sectors in an integrated manner.
It is commendable that the minister has achieved his targets set in theprevious Budget and we expect that he will fulfill the targets set for thecurrent year as well. The Budget is not inflationary. We do not expect anymajor price hikes following the Budget. The Budget has also set aside somegood initiatives which will lead to investments, particularly in investmentsin the infrastructure sector. Mr Birla is AV Birla group chairman
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