Reacting to the FY14 budget announcements, the Indian Electrical & Electronics Manufacturers' Association (IEEMA) has stated that the domestic electrical equipment industry was feeling disappointed as it does not provide the desired impetus essential for growth, sustainability and viability.

The downturn in the domestic demand and increase in imports have played double whammy resulting in negative growth (- 6.14%) over the last 9 months and for the first time in last decade. IEEMA was hopeful of some favourable announcements in the budget for countering increasing imports of electrical equipment. It was also expected that service tax exemption would be granted to all projects covered in power generation, transmission and distribution in line with exemption provided to other infrastructure development projects.

In a statement, J G Kulkarni, President - IEEMA, said "We were hoping for some corrective measures to revive the downturn in the domestic electrical equipment industry which is reeling under the twin onslaught of the slowdown in the country's power sector, which has depressed domestic demand. Additionally the rapidly escalating imports of electrical equipment. This has resulted into under utilisation of the manufacturing capacity for electrical equipment".

Commenting on the Budget, R Ramakrishnan, Vice Chairman, Joint MD & Group CEO of Poly Cab pointed out that the Finance Minister has chosen the path of fiscal prudence rather than populist profligacy. He did have to do a lot of tight rope walking but has done a pretty good job of it. However, the budget is a statement of government intent, but the devil lies in the actual execution. The government should walk the talk and not give in to election oriented, populist, vote gathering announcements, he said in a statement.