The budget is extremely progressive and is likely to boost the economic growth in the coming years.  Several exemptions on customs and excise duties is very encouraging to achieve the planned 8% growth for the country thereby facilitating overall  growth and investment. It is more of a reforms based budget.

Benefits to the basic infrastructure activities, concessions to the salaried class, promoting sports infrastructure alongwith excellent exemptions to the pharma and textile sector will further help in reviving the economy which has already shown signs of growth at 6.1%. I would rate the current reforms introduced at Budget 2003 at 9 on a scale of 10.

Introduction of VAT service tax from the first of April and the dividend tax getting completely abolished will boost and open up the stock market further encouraging the corporate sector.  The budget is also very encouraging to the entrepreneurship skills. I am also happy to see that a lot of measures have been taken towards the easing of the tax administration. Abolition of the dividend tax will boost the capital market. Exemptions given to the hotel industry is likely to boost the tourism which  further promises the economic growth .

From the view point of SSIs I am happy that our interests have been safeguarded by restricting the interest rates paid by the SSIs within the fixed band of 2% on Prime Lending Rate. This is a very positive move which will further add to the growth in this sector .

Although the structure of the corporate tax has not changed still the positive point is     that the surcharge towards the security of India levied @ 5% for the corporate has been halved. It is very encouraging to the corporate. Discouraging aspect of the budget is the increase in the service tax from 5% --- to 8% whereas no substantial measures have been taken to encourage the agriculture industry.  I am strongly disappointed to see that the 12.5% of dividend distribution tax has been made applicable only to the domestic companies and not to the foreign multinationals. This should have been made applicable to the Indian multinationals also to keep a balanced competition in the market. Still the overall budget is extremely promising and is sure to revive the economy

Mr. B . B Somani, Managing Director, Abee Info-Consumables Ltd.