Leading bankers welcomed the Union budget as they acknowledged that the budget would spearhead growth.
“The budget has highlighted some challenges in the Indian economy which need to be tackled urgently,” said State Bank of India Chairman O. P. Bhatt. One challenge is fiscal consolidation and the imperative to build fiscal credibility by sticking to the 13th Finance Commission's road map for deficit reduction and ensuring stability of the growth process. While the unwinding of the stimulus measures would to some extent push up excise duties and consequently input costs, the budget has created space for spending by tax reforms and rationalisation while taking growth concerns on board together with making the growth concerns socially inclusive.
“The budget for 2011-12 is a growth oriented budget that seeks to build on India's strengths and to address the challenges that we face,” Chanda Kochhar, Managing Director and Chief Executive Officer of ICICI Bank.
“The Finance Minister has ensured sustained growth with a perfect reform agenda,” said Alok K. Misra, CMD, Bank of India