New Delhi: India Inc. on Tuesday lauded Finance Minister P Chidambaram for his measures to bring in fiscal discipline and cut deficit but had a mixed view on new tax proposals burdening the capital market.
"The industry will be happy as there are no major negatives. It has cut down customs duty and has covered lot of industries as well," CII chief mentor Tarun Das said.
J M Morgan Stanley Chairman Nimesh Kampani termed the budget as a good development on fiscal side.
"I think the Minister has done a great job in fiscal deficit, which will be 3.8 per cent of GDP in 2006-07," Kampani said.
Kotak Mahindra Bank Vice-Chairman Uday Kotak also welcomed the budget saying it was a positive budget at micro level and was good for long-term investors.
However, Ruchir Sharma of Morgan Stanley said it was an "innocuous budget" and there were no policy initiatives to take the market to higher levels.
"The market hoped for much more than just reforms. Even Prime Minister Manmohan Singh had talked about out of the box thinking," Sharma said.
For Joint Managing Director of DSP Merrill Lynch Amit Chandra the Budget was an indicator of development.
He said, "For me the most important striking feature of the Budget is that it's becoming a non-event and that is a sign that the economy is rapidly moving from developing to developed. The fact that we have a very stable tax regime speaks well for investment and for the industry."
Meanwhile, Director of ENAM Financial Consultants, Vallabh Bhansali said, "My view is that except for oil sector, where there is the big subsidy bill, most of the things were on the expected lines."
Overall, India Inc has reacted positively to the Union Budget and Mahindra Bank Vice-Chairman Uday Kotak said, "Significant spending in Bharat Nirman and Rural India will boost demand in those areas. Clearly, a very positive step towards creating a long-term platform, where India is a stable country from a macro point of view. That is very positive."
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