Finally, a little mercy.” That’s the way Puneites reacted to the sprinkling of rain that arrived on Monday morning, and Pune Inc to the Union budget initially.

The response from the IT and auto sectors, which between them employ the maximum number of people in Pune, was, however, a bit muted as no big sops were coming their way, though there were no big complaints heard either.

The big-ticket cheer that went up from Pune Inc was for the abolition of the fringe benefit tax (FBT); the emphasis given to infrastructure development got most of the corporates into a positive mood. The downside, however, was the lack of positive connect with bourses as the BSE Sensex tanked 869 points leading to some gloom among investors.

Mukesh Malhotra, president, Mahratta Chamber of Commerce, Industries and Agriculture said that budget seemed to have something for everyone. “The stress by Pranab Mukherjee that companies go for R&D strikes a positive note for Pune which has many companies engaged in R&D. The introduction of direct tax code is a welcome step. The fiscal deficit of the Central Government pegged at 6.7 per cent is a cause of concern; coupled with the deficit of the state government, it’ll touch double digits. Another worrisome factor is the increase in subsidies by almost 50 per cent,” he said.

For the auto industry, General Motors vice-president P Balendran said the budget did not meet expectations fully. “Other than a reduction of Rs 5, 000 on the additional cess of Rs 20,000 imposed on bigger cars and MUVs sometime last year, over and above the excise duty of 20 per cent, we have not seen any relief on the excise front in the budget,” he said. J S Chopra, president, Automotive Component Manufacturers Association of India, said the budget would not have any direct impact on the auto-component industry but the increase in outlays for NHAI and JNNURM would fuel growth in the medium to long term.

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