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CHENNAI, March 2

MR R. SESHASAYEE, Managing Director, Ashok Leyland Ltd and President, Society of Indian Automotive Manufacturers (SIAM), has welcomed the Budget, saying that it is growth-oriented.

Mr Seshasayee said that the Budget clearly addressed three factors inhibiting economic growth, viz., "physical infrastructure, (demand) pre-emption by high taxation and bureaucracy".

He welcomed the initiatives taken for developing infrastructure and noted that "this Government has an obsession with road development." Secondly, the ushering in of the VAT regime and progressive reduction in levies, addressed the demand pre-emption by high taxation.

Finally, the proposed restructuring of the Ministry of Finance and the simplification of various procedures, addressed the bureaucratic hurdle.

Mr Seshasayee said that there was no need to worry about the rise in the fiscal deficit. In not emphasising too much on `fiscal deficit, the Finance Minister had "erred on the riskier side", but if the country did not take this risk, there would be on the "boring growth".

Asked for a comment on the automobile sector, Mr Seshasayee said, "We've got most of what we wanted" (excise duty reduction, fiscal encouragement to vehicle manufacturers for body building). He observed that there were no announcements regarding replacement of aging truck fleet or a higher weighted deduction for emission-related R&D expenditure, but "a budget cannot answer everything".

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