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.

For the IT industry, the budget was a mixed bag. NASSCOM said recommendations relating to multiplicity of taxes on packaged software, creation of a dispute resolution mechanism on transfer pricing, abolition of FBT and issues on service tax refund were positives.

“The combined effect of these proposals will facilitate the industry and (encourage) its two-million workforce to compete effectively. The industry will be keen to partner the government in expanding e-governance initiatives including modernisation of employment exchanges, the UIAD project, and smart cards for healthcare services so as to achieve enhanced governance,” said Pramod Bhasin, chairman, NASSCOM.

Deepak Shikarpur, chairman of the IT committee, MCCIA, said the extension of STPI scheme, abolition of FBT and removal of tax on software products meant good news for the IT industry. “Reduction of duty on LCD projector will enhance e-learning. Overall it is a mixed budget for the IT sector,” he said. The negative for the IT industry was that it had wanted the tax holiday under Software Technology Park of India (STPI) scheme extended for five years but got just a one-year extension.