TWB brings to you a detailed review of the Union Budget from corporate head honchos and experts:

Mr. Gaurav Dua - Head Research , Sharekhan Ltd.
The Union Budget has fallen short of high market expectations. The street has reacted negatively to issues such as high projected fiscal deficit of 6.8% (and more importantly there is no roadmap of bring it down), no mention of reforms in petroleum and insurance sectors, and absence of focus on aggressively pushing ahead the divestment program. On the positive side, the Finance Minister announced specific measures to enhance investment in infrastructure and boost domestic consumption through lower tax burden (higher standard deduction, withdrawal of surcharge and education cess). Overall, the focus continues to remain on stimulating economic growth in spite of further deterioration on fiscal front.

Mr. Vijay Bobba, CEO, I-Mint- India's largest coalition loyalty program.
"The government has taken specific measures to increase disposable incomes. With a more friendly tax structure, individuals will have more cash in hand which may lead to increase spending and hence augment demand. Exemptions and reductions on excise and service tax on specific areas will also lead to additional margins that can be passed on to the end consumer. Also, the budget aims to rationalise taxation policies with the introduction of the GST next year. However, from a retail perspective, FDI was a major issue which has not been discussed."

Mr. S.C Agarwal's, CEO, Indian Tools Manufacturing, part of Birla auto and engineering group post -budget reactions on Auto sector.
The Budget appears to be neutral  to Cutting Tool Industry. Due to increases in Planned Expenditure,  allocation for rural employment and additional disposable income on account of individual Income Tax benefit, consumption level can be sustained in the short term. Private capital investment in the Industry  may not get stimulated soon until Engineering Goods  Export and Commercial Vehicle Sales improve.

Ms.Yashika Singh - Head Economy Analysis Group, Dun & Bradstreet India
Economic Survey FY09 has an almost unprecedented focus on reforms, which is extremely encouraging. Apart from the various initiatives proposed, the suggestion of the move towards fiscal responsibility is another positive suggestion. It remains to be seen how many of these suggestions find articulation in the budget. It is conceivable that the road-map suggested by the Survey may be met by policy initiatives that need not necessarily be announced as a part of the Union Budget. In some sense, the Survey seems to demarcate those issues that pertain to the immediate concerns of the economy, with those that may be deemed more important from a strategic and structural perspective. Hence, the policy initiatives required to meet these objectives might be accordingly paced.
The Survey has predicted a GDP growth of 7-7.5% for FY10. While there are some downside risks, there seem to be emerging signs of stability in the economy. The D&B Business Optimism Index for Q3 2009 (Jul - Sep) went up by as much as 40% on a q-o-q basis. While the Index is still lower than what it was for the same period last year, this sharp jump in sentiment implies that confidence might be returning to the corporate sector, and much of the uncertainty may have been allayed. In this context, the suggestion of 'exit' strategies in terms of fiscal and monetary policies as espoused in the Survey become even more critical. Timely and effective implementation of the suggestions in the Survey would be crucial towards achieving growth targets.

Mr. Kaushal Sampat, Chief Operating Officer - Dun & Bradstreet - India
The Union Budget 2009 -10 is  largely positive, and seems to be an 'aspirational' budget in terms of what it seeks to achieve over a long term horizon. As we had expected, the Budget clearly breaks down into three parts - short, medium and long term. The short term proposals, which are focused on economic revival, are slightly above our expectations, and are welcome for the support they'd provide to an economy which is expected to get back on the revival path soon. Of course, these measures would have been even more welcome if a specific road map for containing the fiscal deficit had been laid out for the medium term. Having said that, the government does not have too much room to maneuver and perhaps, living with a high fiscal deficit may be inevitable for the time being. As economic revival sets in, and the high fiscal deficit becomes a potential bottleneck, monetary policy may have to be appropriately adjusted to take care of the issues pertaining to fund availability - which in itself may not have too much room. Hence, over the medium term, concerns remain over the fiscal deficit.
The positives contained in this budget will become most apparent over the longer term, and that is where it scores the most - provided the intent and aspiration is met. While disinvestment could have found greater articulation, there seems to be a positive movement in that direction. The large number of measures proposed with regard to institutional, procedural and regulatory reform in such diverse areas as petrol prices, taxation and growth inclusiveness will unlock much of the economic growth potential. As the FM indicated, one budget speech will not solve all our problems! Hence, we may see some key policy initiatives being taken off-budget.
LP University.

Chancellor, LPU, Ashok Mittal says, "What we hope from the coming budget session is  various incentives that the industry seeks from the government must include heftier tax rebates on revenue, tax exemption on export duties, opening up of more STPIs, bailing out companies mired in financial mess and more orders from government undertakings to beat the recession." He adds, "Keeping in mind the potential of  private organizations to provide world class education to the tomorrow of India, private players must be given a more free hand and rebates to enter the field considering the high initial entrance cost."

Mr. M. S. Arora, CEO, Zenith Birla, flagship company of Yash Birla Group.
It is good to note that the Excise duty rates on Steel related products have not been increased from present 8.24% it will help in demand to grow in the country under these trying times.
However no change in the policy, on Restriction to be removed on Flat Steel import is a negative aspect as this will create & increase the imbalance in the prices of steel in the domestic market.
Removal of FBT is a welcome step which will help eliminating the cumbersome procedure to keep a track of figures under this head.
No initiative to boost Exports to steel product related industries is a cause of worry and hope that the forthcoming Exim policy will take steps to help the declining figures of exports.

Mr. Yash Birla, Chairman, The Yash Birla Group:
The Budget 2009-10 is all about getting the India Growth story back on track. This is targeted to be achieved through the short and long term measures that have been introduced. The unique aspect of focus on efficacy of delivery mechanisms for various measures is heartening.
Due importance to infrastructure has been rightfully given as well as a boost to exports which will stimulate the sector that has been languishing.
The disinvestment announcement is welcome but the targeted amount could have been higher which would have freed up resources to invest in the various social schemes that have been announced.
This is in short a budget that aims to jumpstart a economy that has slowed down which is good but it could have been more aggressive.
For our Group, the positive measures announced for Education, Textiles, IT, Exports are welcome and would give a fillip to our group companies in this sphere.

MR. RAJU TODI, CEO, BIRLA ELECTRICALS:
Major Implication of Budget on BEL / BIPL
1)  No change in Excise, Custom duty - company not affected.
2)  MAT increased from 10 - 15% and maximum period for availing credit extended from 7 years to 10 years -  No impact on Compay.
3)  FBT abolished  -  will save Rs.2.00 lacs approx. in both the company.
Beside the above, individuals I. Tax exemption limit raised / surcharge abolished.

Mr. Kalyan Bhattacharya, President& CEO,  Birla Power Solutions Ltd:
The increased budget allocation on social development schemes with focus on health and education for the rural population is indeed a right step for the 'inclusive growth' highlighted in the pre-budget survey. 
The areas which will allow BPSL to increase its contribution towards national development are:
1.National Rural Health Mission
2.Mission in Education through ICT'
3.Construction of Roads/Infrastructure
4.Public Delivery Services
The increased allocation of funds for  Agricultural Development and Irrigation, is a welcome move, though there is no 'special incentive' for companies like BPSL which is producing Power Tillers and fuel efficient Pumps for the marginal farmers in less developed states in the East and Northeast.
The budget mentions about the Power Reform Program. However, it is unclear about the incentives available for private sector to join the PPP for investment in power generation and expansion of the distribution system in the rural areas.
The budget is not encouraging for the manufacturing sector. No new initiatives are visible and there is hardly any incentive in terms of tax and duty benefits for the organized sector in the engineering industry.
Overall, the budget is an average one and does not fulfill the expectation of a key driver for industrial development.   

Dr. Ram Kumar Kakani, XLRI Jamshedpur
Yes, as the budget document states - yesterday's budget by Pranab Mukherjee is a budget targeting inclusive development and stresses on improving the delivery mechanism of the government. The plan documents stress on more spend on agriculture development (say, target credit at Rs 3,25,000 crores), infrastructure development (say, IIFCL financing scheme), NREGS, and PMAGY (another new inclusive development scheme) do give us enough indications on the same.
On the other hand the budget document by honourable minister also gives enough indications of an incomplete document. For example, there are no indications of tackling the growing fiscal deficit. it also does not give any indications of how the nation is going to tackle the decreasing corporate governance standards in the corporate India. The negative reaction of the capital market indices does capture the feeling of disappointment and deja vu of the market participant's especially large institutional investors and the large corporate who were expecting large benefits after the return of congress government with a more solid coalition government.
Overall, it is a typical Pranab Mukherjee budget, strong on rhetoric and language but short on action. 

Prof. H. K Pradhan
It is an inclusive budget, with significant focus on agricultural development, food security as well as social safety net as embodied in the enhancement of the National Rural Programme (NAREGA), focus on employment, rural health and housing. The Government has lived up to the expectations of the Aam Admi, as the growth is being shared more proportionately than ever before.  Focus on agriculture and rural development are the key stimulus in the budget, and even the commodity transaction tax would ultimately benefit agricultural sector. Increased resources under the JNURM adds to urban development, which has generated employment in the past.
The Finance Minister has not fallen into the hands of the myopic speculators by tweaking here and there, who expected a quick buck from the short term upsurge in stock market. As the focus on fiscal stimulus continues with further support to exports, the growth momentum is expected to be sustained. The impact of scrapping fringe benefit tax and surcharge, raising personal income tax exemption limits which together with the impetus to rural sector will increase consumption, and this is expected to boost the FMCG sector that has been hit by the recession.
My only worry is that the whole of the stimulus package is expected to be financed out of  borrowing from the capital market, over and above the borrowing that was proposed in the Rail Budget, all of which would have a crowding out effect on private investments. If the inflation rate rebounds due to a high fiscal deficit, the falling trend in interest rates might reverse its course.  The combined fiscal deficits of the centre and the states are expected to increase, and the Government needs to examine the implications on its market borrowing  programme.