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'I wonder whether so much can be delivered'

R Seshasayee

I think it has been an extremely good Budget. Primarily because it has addressed the growth requirements of the economy as well as tackle some of the sensitive reform issues which are necessary for the long term good of the economy.

I will give 8 out of 10 to this Budget.

Unfortunately the philosophy of the Railway Budget was different from the philosophy of the Union Budget.

The negative points are:
1. There are lots of promises, particularly on the reform front. I wonder whether so much can be delivered.

2. Competitiveness of the Indian industry is dependent on robust R&D, there is not much to stimulate scientific research and corporate R&D.

I think the Budget is positive for Ashok Leyland also. Firstly because, higher depreciation at 50 per cent on vehicles purchased will stimulate demand. Secondly, the proposals relating to road development will result in higher demand for tippers and construction equipment. We have a good market share in tippers and therefore I look forward to a buoyant year.

This Budget has specifically addressed issues confronting the automotive industry. Firstly the reduction in excise duty on cars and two-wheelers will stimulate growth in this segment. Similarly the higher depreciation on commercial vehicles will again stimulate the immediate demand situation.

In the medium term the higher customs duty at 180 per cent on second-hand imported vehicles will protect value addition in the country and prevent dumping. In the long term the development of the road infrastructure will bring greater growth prospects to the industry.

R Seshasayee is MD, Ashok Leyland Limited

Budget 2001

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