Customs duty cut to spur growth: Ajay Piramal

The finance minister has presented a positive Budget that further encourages economic growth and investment, while keeping in mind developmental initiatives.

For the pharmaceuticals sector, extension of 15 per cent weighted deduction on R&D expenditure till 2007 is welcome, although we believe this should have been longer term, given the nature of investment in research work.

Overseas clinical trials and global patent filing expenses should also qualify for weighted deduction. The Budget has belied industry's hope of lower excise duty. But, I am pleased with the government's commitment to implement VAT, and am sure that it will take suitable measures to remove transitional difficulties being faced by the trade.

Reduction of individual and corporate taxes will fuel economic growth and investment. The proposal to make book profits tax a deferred tax is also in the right direction. Customs duty reduction in various sectors should enhance competitiveness of user Indian companies.

Similarly, foreign trade liberalisation initiatives should add a fillip to India Inc's growth in global markets. I was particularly pleased with the high targets set by the government in agriculture, roads, housing, electricity and telecom as a part of President 's Vision of Bharat Nirman.

The FM's emphasis on "Outcomes vs. Outlays" sets a positive result orientation to such policy initiatives.