India Inc. lauds Union Budget 2008-09 but expected "more"

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"Budget is on the expected lines and the industry has not been penalized although we are disappointed that the corporate tax has not been changed," said industry chamber Confederation of Indian Industry (CII) president and head of India's largest mobile services provider, Bharti Airtel's Sunil Mittal.

"While the finance minister has been bold on the personal income tax front, corporate income tax and surcharge could have been reduced, that is the only piece of disappointment," he said.

As for the $15 billion loan waiver scheme announced by the finance minister for poor and debt-ridden farmers, Mittal said he was worried "this move might send wrong signals to various sections of society as loans should be repaid."

"We are delighted for million of farmers who have been given waiver. They deserve that salutation. [But] One has to explore every possible way to find out if the same benefit could not have been given in any other way. A loan waiver should not send the message that a financial obligation, like a loan could be reneged, which would send distortionary messages all across," he said.

CII, however, said it was happy that the necessary attention has been given to the social sector including health and education.

The fact that this has been supplemented by a lot of focus on the rural economy would indirectly fuel a growth cycle, the industry chamber said.

"Stepping up budgetary allocation by 20 percent and focus on improved access to healthcare along with setting up of SC/ST/minorities Development Finance Corporation are measures that would help build people of India," Mittal said.

Another industry chamber, the Federation of Indian Chambers of Commerce and Industry (FICCI) said the "balanced" Budget fulfills the political compulsions of the government without compromising the growth of the economy.

Agreeing with Chidambaram on the budget emphasis to agriculture, health, education and skills development, FICCI president Rajeev Chandrasekhar said it was "overall positive" but added that the finance minister could have been "bolder."

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