Budget 2013: Manufacturing, Infrastructure Gets Boosts

"FM has not delivered a Budget which will excite the investment crowd and help the capital market. I know they have to implement the measures and all, but I think this is not something that will spark a rally. It is not exciting enough to bring new investors or investors who we have missed in the past because that spark was not there," says Samir Arora, Fund Manager at Helios Capital.

Whereas Deepak Parekh, Chairman, HDFC feels that this budget is pragmatic, balanced and fair to tax super rich. He says, "It is a very realistic, balanced, and pragmatic Budget. Investment allowance of 15 percent on plant and machinery has been reintroduced. If a house under Rs 25 lakh is purchased in next one year, then a person is eligible for a deduction of Rs 2.5 lakh, which was not the case before. The FM has extended the year of completion of power plants."

"This is a fiscal stimulus budget. With 30 per cent jump in planned growth, this budget is driven by expenditure. It’s a classical old style. Through this the FM hopes to get higher growth. This raises the ground for a rate cut in the upcoming policy. Social and rural spending may not even lead to inflationary pressure. On a scale of one to ten, this is a four," says Haseeb Drabu, Economist.

Rajiv Anand, Axis Mutual Funds readted too. He said, "No change in tax rates? So the bet is on growth? On disinvestment? We have been complaining about gold imports. But we have incentivised imports by increasing duty free allowance for gold."

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