So what do market experts make of Chidambaram's budget? Sify.com spoke to Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities to find out:
How do you rate Chidambaram's budget?
In the backdrop of global headwinds, high inflationary pressures and urgency to control fiscal deficit, the Finance Minister has done a creditable job.
The Finance Minster had the unenviable job of reinvigorating growth on one hand and controlling expenditure on the other. To reduce the gap between revenues and expenditure, he has increased surcharge on salaried individuals earnings over Rs 10 millon and corporates generating over Rs 100 million in profits.
To attract equity investments, he has liberalised the Rajiv Gandhi Equity Savings Scheme.
What did you like about the budget?
There were no major populist measure as was being feared in some quarters.
The FM has talked about raising investment in port sector, industrial corridors, coal production and renewable energy, which are positive steps in the right direction.
What were the areas where you thought it fell short?
Which are the sectors you see it impacting positively in the long term?
The budget should be marginally positive for capital goods sector and infrastructure sector, shipping and power sector.
Which are the sectors that will be hit by it?
The FM has raised excise duty on cigarettes and SUVs, which will be negative for ITC and M&M (Mahindra and Mahindra respectively.
In the end, has it been a poll-friendly or an investor-friendly budget?
It has been a practical budget.