Commenting on Union Budget 2009-10, K Raghavendra Rao, Managing Director, Orchid Chemicals & Pharmaceuticals said, “The Union budget reaffirms the Government's commitment to social welfare programmes like rural employment and housing and national food security.

The budget fell short of market expectations on certain infrastructural and FDI investments as well as disinvestment roadmap. This coupled with a high fiscal deficit of 6.8%, seemed to have disappointed the market. The upstream effects of investing in rural and agrarian uplifting programs would however be significant and may be perceived positively in days and weeks to come.

For the corporate sector, the abolition of Fringe Benefit Tax (FBT) is a welcome relief but the increase in MAT would affect many companies. The step to reduce duty on life-saving drugs and vaccines is a positive step and the scope of provisions relating to weighted deductions of 150% on expenditure incurred on in-house R&D should be a positive for all pharma players with a focus on R&D."