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Post finance minister Pranab Mukherjee’s most awaited Budget speech, Mint talks to experts from various sectors to get their first reactions to the Budget 2009.

image from Money Control

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Harsh Mariwala, chairman of Marico feels that the Budget is growth oriented.

He said, allocations in the infrastructure areas and social sectors is going to improve the overall economic performance over a period of time. This will lead to increased in demand and an increased GDP growth rate as we go forward.

The time has come for India to transform itself and the Indian pharmaceutical industry. We have built a formidable reputation for ourselves as a location where the high quality of our products is matched with an almost unbeatable cost-competitiveness.

But even though it is one of the fastest growing markets globally, the Indian pharmaceutical industry faces several challenges. Multinationals that earlier focused on proprietary drugs are now aggressively targeting branded generics. With patent laws becoming stricter, new product introductions - that was the lifeline for Indian pharmaceutical companies - have slowed down considerably. [Read more]

If you were granted three wishes as the FM what would they be?

I would simplify the taxation system. There are several complicated dues such as the fringe benefit tax, cess etc. I would club them all together industry wise, and levy a single deduction. It is easier to get permits to ship raw material to Pakistan and Bangladesh than to Bihar and West Bengal because inter-state co-ordination and ease in doing business within the country is difficult. These regulations must be modernized and made hassle free.

Although the government encourages innovation, there are no real incentives to promote patent filing. It costs Rs1 crore to file a global patent. To encourage more patent filing, government should reimburse 75lakh, if the patent is granted.

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Mr Vellayan, Vice-Chairman and Director-Strategy of  the Murugappa Corporate Board shared some of his expectations for the budget across various segments of the manufacturing sector:

Automobiles (Two wheelers and cycles)
India  has  the  potential  to  be an export hub for bicycles. Appropriate fiscal  supports  like  export subsidies, tax exemption from excise duty on steel inputs as well as service tax on input service will help reduce costs and boost sales of bicycles. [Read more]

If you had three wishes in the upcoming budget what would they be?
1.    That the union budget will deliver on the social agenda this year.
2.    Ensure efficiency in public expenditure
3.    I wish that the budget delivers an impetus for the growth and well being of the common citizen. [Read more]

If you were granted three wishes as the finance minister, what would they be?
 
If I were the finance minister, I would reduce taxes and leave higher disposable income in the hands of the consumer to stimulate demand, increase spending in core sector and rural infrastructure and initiate financial sector reforms for the development of a vibrant capital market. At a macro level, I would like to insulate the country from global swings by concentrating more on the domestic market. [Read more]

According to me, what we need right now is an intelligent mix of the symbolic and the substantive. In the short run, it is important to keep the sentiment positive, in particular to avoid a situation where the budget is seen to be a disappointing one from Industry’s perspective. Tax breaks for the middle class and reduction in indirect taxes would help stimulate consumption and stimulate the current good feeling going. At a more substantive level, this budget needs on focus on infrastructure, education and healthcare, areas that have never quite received the attention due to them. Along with this investment, a serious effort to revamp delivery mechanisms and institutes far reaching administrative reform is essential. [Read more]