It is an extraordinary and good budget. It has something for every sector, industry, agriculture and also for the new economy. It is extremely positive for the banking and finance sector. Specially for public sector banks as they will now have more autonomy in appointing staff. Decline in small saving rates is expected to give fillip to credit growth of the sector. It will also boost demand from the consumer segment for various loans like auto loans, personal loans and loan for consumer durables. The budget is also positive for the debt market.

The budget is very good. It is more modern and pragmatic in its approach. Attempts have been made to rationalize the indirect taxes and direct taxes have been reduced. Benefits have been given to several core sectors including Housing and Infrastructure. Announcements on the National Company Law Tribunal and repealing of the Sick Industrial Companies Act (SICA) are also encouraging.

It is a very sensible budget. From the long-term reforms perspective the reduction in interest rates and labour laws is a good move. This will facilitate in reducing the capital and labour costs of organisations.