Industry's mixed reaction to Budget 2011-2012

Adgully had walked through some of the expectations from industry leaders before the Budget was announced yesterday. Today we'll see how industry leaders have reacted to Budget 2011. It's a mixed reaction with tax regulations being relaxed on one hand and on the other hand not really accommodating the sentiments of the common man. Let's hear what leaders across industries have to say.

Venugopal Dhoot, Chairman Videocon Group:

"As an Indian, I think it is a stagnant budget, there aren't too many benefits. From a woman's perspective, there is not any increase in tax breaks in the income level. From healthcare point of view, as the CEO of Metropolis, it is very disappointing because there are no benefits provided for healthcare in the budge and there is a lack of focus on healthcare. Rather, the people have been penalized. Nursing homes with more than 25 beds and diagnostics centers will now pay the service tax. This will affect the diagnostic industry. People will now be required to pay 5 % extra from their pockets. Healthcare costs are a major part of the common Indian's expenditure, and are now rising quickly. Government needs to bring policies that will reduce the costs rather than looking at it as a source of revenue. In short, it is very disappointing. Hopefully, in the next few years, the government will make healthcare more accessible and affordable for all Indians. The government will have to work closer with the private industry to achieve it"

V. Vaidyanathan, MD and VC, Future Capital

"Finance Minister's announcement that the Insurance Bill will be considered in this session is a great boost to the insurance industry. It will empower IRDA to introduce forward-looking regulation to promote sustainable growth of the industry. The Bill gives a lot of flexibility to IRDA in framing regulations.

Life insurance industry has been asking for pension annuities to be made tax-free. We are disappointed that the demand has not been met. However, we are happy that the basic exemption limit for senior citizens has been increased. Senior citizen age limit has been reduced to 60 years with basic exemption limit of Rs 2.5 lakhs and a Very Senior Citizen category has been introduced at age 80 and above with exemption limit of Rs 5 lakhs. This will help the seniors to enjoy pensions in the retirement years without tax impact if they are within exemption limit. But, to develop the pension market fully, annuities need to be made tax-free. We hope that the DTC will ensure the same.

The budget has made a modification in the service tax on fund management charges due to which some of the guaranteed ulips would attract higher charges. However, guaranteed products would continue to be attractive to customers."

Dabur India Ltd CEO Sunil Duggal's comment on Union Budget 2011-12

The post budget traffic on social networking sites like Twitter was massive with people from different walks of life tweeting their thoughts on this year's budget. | By Janees Antoo [janees(at)adgully.com]