Budget 2008-09: What to expect ??

Budget will focus on growth and curbing inflation.

Positive for Infrastructure (Construction, Power, Railways, Capital goods) since demand has grown faster than supply. Government says it needs US$500bn for infrastructure development.

Positive for Telecom since government wants to improve rural connectivity.

Education may get a boost as economic survey states that thrust is required on creating skilled human resource to maintain growth.

Agriculture related sectors will continue to benefit.

Rationalization of excise and customs duty of essential commodities would take place since inflation control is top priority of the government.

Not much likely to be done for textiles, handicrafts and leather. It will not affect market sentiment a great deal though, as these sectors are not index heavy weights.

Corporate tax rates not likely to be changed. Surcharge may be lowered or slab for IT exemption may be raised.