An election budget, but remarkable: India Inc

Dubbing it as an "election budget", India Inc today said Finance Minister P Chidambaram has done a "remarkable job" to ensure that economy continues to grow at 9% even as it was divided over loan waivers for farmers.

There were disappointments among captains of industry and investment banking over lack of concession in corporate tax and increase in short-term capital gains tax with a few even fearing that the burden of loan waiver could be passed on to them.

"We realise that it was an election budget. However, a lot of aspects of it have confirmed that the Finance Minister has done a remarkable job," FICCI president Rajeev Chandershekhar said.

"The Finance Minister has ensured that the growth momentum will continue...And we, as an industry, are completely sure that we will be able to maintain the 9% growth," he said.

"We are delighted for million of farmers who have been given waiver...They deserve that salutation," CII president and Bharti group Chief Sunil Mittal said but with the caveat that the move could send wrong signals.

Echoing the sentiment, Assocham president V N Dhoot said that though the budget would ensure growth momentum and Chidambaram had exceeded expectations of the industry, loan waiver was not the ultimate solution.