Confidence vote for stability

COMMENT: Habil Khorakiwala, chairman, Wockhardt Group

This Budget is a vote of confidence in the government's efforts to achieve stability and fiscal prudence.

The decision to aim for a uniform goods and services tax for the country is path-breaking. I am surprised at the deafening silence on the pharmaceuticals and healthcare sector.

My biggest disappointment is that there is nothing in the Budget to promote R&D despite specific demand from the industry to increase the weighted deduction and to have it for a period of 10 to 15 years.

The minister was keen to reduce excise duty on dosas and condensed milk. But medicines will continue to attract 16 per cent duty. A reduction in excise would have made medicines more affordable.

On the positive side, removal of FBT on samples to doctors is a step in the right direction. The reduction in duty on sale of goods from EOU to DTA and the reduction in duties on AIDS and cancer drugs is welcome.

Power generation has grown by only 4.7 per cent as against the GDP growth of 8 per cent and manufacturing sector growth of over 9 per cent. This is a dangerous trend and will increase the cost of power for the industry, making our industry less competitive.