'The Budget is forward looking'

Do you call this a populist Budget or a reformist one?

This is not a populist Budget at all. I think it is a reformist Budget.

You mean it does not have anything that has an eye on the coming general elections?

I don't think there is anything that would not fall in line either with prudence or with the reform agenda of the government.

Which are the aspects of the Budget that you are happy about?

Firstly, the investment promised on infrastructure and emphasis on road building. Secondly, the decision to carry forward the reform process in administration and reduction in duty structure. Thirdly, the overall stimulation in terms of consumption.

The government has seen the actual benefits of the focus on road infrastructure in the last couple of years and it has come mainly from the Golden Quadrilateral. We have also seen the stimulus it has given to the economy. Therefore, now the government wants to take it farther into other parts too which is a welcome decision. And, the private-public artnership is the right kind of model to pursue this.

From the point of view of a commercial vehicle manufacturer, how important is the decision to give focus on infrastructure?

Very important. Even if we make structural changes to industry, unless we have the right kind of roads, the economics of operations for our customers won't be right. Until economics of customers are correct, we can't flourish.

Other than infrastructure, has the finance minister mentioned anything that is beneficial to your sector?

There is a very specific issue which is related to the excise duty in bodies built by the unorganised sector. We have been making representations to the government for a long time that the anomaly in the duty structure should be removed. Now, it is possible for manufacturers to build bodies without having to pay the penalty of additional tax. It reduces the anomaly between the unorganised sector and the organised sector in body building.

With money in the hands of the consumer, do you expect the economy to grow more this year?

I think so. I think one of the reasons why we have not fully realised the potential of our economy is partly because of the poor infrastructure which is being addressed now, and partly because of the excessive pre-emption of factors which has not been used productively by the government. Now that money has been given in the hands of the consumer, we can expect buoyancy in the economy.

Agriculture recorded a negative growth last year due to drought but the finance minister has not addressed the problems of the sector much. Are you disappointed?

No. I don't think we should look for solutions in the agriculture sector in the Budget. First of all, Budget does not touch agriculture because the sector is exempt from taxation. But what is important is to have an agricultural policy, which is not a part of the Budget but it is essential to have a farm policy that will increase the productivity on the farm front significantly. If that is so, a whole lot of issues can be addressed. But we should not expect that to come from the Budget. So, I am not disappointed because the Budget did not touch on the farm sector but I am disappointed because the government has not done anything on the farm front.

Are you worried about the fiscal deficit?

The risk is well worth taking because it releases enterprise in the system, which will give better returns. I feel both the growth and return resulting out of it will make the risk relatively manageable.

How would you rate the Budget?

7 out of 10. Usually after a good Budget, we have a bad year. Normally, what we have seen is, a good Budget does not get translated into good market growth. This time, I only hope that doesn't happen. I think this Budget is a forward-looking one.