Ordinary Budget: Pune industry

Industry circles in Pune gave a thumbs down to Finance Minister P Chidambaram's Budget proposals for the year 2007-08, calling them 'ordinary' to 'poor.'

Most of the head honchos in the city's corporate arena underlined the lack of attempt on the finance minister's part to contain inflationary trends, while his sharp focus on education as well as agriculture and food processing was largely welcomed.

The one proposal that came in for the most severe criticism was the increase in dividend distribution tax, which some called a 'retrograde step'.

Ravi Chopra, CMD of Piaggio India, said the proposal would have a negative impact on the corporate sentiment.

"The Budget will not encourage further investment nor will it have any impact on growth," Chopra asserted.

Pune head of the Confederation of Indian Industry, Pramod Chaudhari, said: The two per cent additional investment in agriculture is welcome but one fails to understand the link between the proposal and inflation control.

"We should move to a scenario where a farmer gets remunerative price for his produce and then offer him ways in which to maximise his returns," Chaudhari said.

He welcomed the finance minister's acknowledging the importance of bio-diesel and also the concessions to venture capital organisations investing in biotechnology projects.

Calling increase in education cess a negative step, H P Srivastava, vice-chairman of Nagar Road Industry Chamber, said the finance minister had touched upon different sectors but there was no concrete scheme for any of them. Srivastava pointed out that no effort was made to simplify the direct tax structure or to cut down transaction costs.

Daimler Chrysler India Ltd director of corporate affairs Suhas Kadlaskar said the Budget was disappointing in terms of levy of additional one per cent education cess and no reduction in the excise duty on cars.

Deepak Shikarpur, chairman of the IT group at Mahratta Chamber of Commerce, Industry and Agriculture, said the finance minister failed to address any of the pressing issues of the ITTeS industry.

"Whether it is telecommunications, software or hardware, the Budget does not address many important issues. The only good thing in Budget 2007-08 is the focus on venture capital funding and the technology incubators," he felt.

Welcoming the encouragement offered to the food processing industry and FMCG sector, MCCIA's economist Manasi Phadke said, "slashing of excise duty on instant mixes to zero per cent and removing customs duty on machinery for the food processing industry will boost the food processing industry. Also the thrust on forward trading and commodity training will improve and stabilise the raw material prices."