From M&M's point of view the highlights of the budget are :-

• The Finance Minister has followed up the announcement of National Agricultural Policy and put it in focus. An increase in rural credit from Rs.51,500 crore this year to Rs.64,000 crore next year will fuel rural demand.  The Finance Minister has coupled this provision of credit with a reduction in NABARD interest rate from 11.5 per cent to 10.5 per cent.
  
• While talking about national highways and roads the finance minister has earmarked 50 per cent of the diesel cess for development of rural roads.  These measures directed towards agriculture and rural areas will have a positive impact on the demand for two major products of the company - tractors and multi utility vehicles.
  
• While rationalising the excise duty rates, the duty on motor cars has been brought down from forty percent to thirty-two percent and will help the presently depressed automobile industry.  This reduction also applies to some of the models of the multi utility vehicles.
  
• The domestic auto industry had worries about the impact of second hand vehicles after the quantitative restrictions  (QRs) on imports are removed.    The finance minister has addressed this issue by imposing an effective duty of 180% on import of second hand vehicles.
  
• The budget emphasizes education, underlines infrastructure needs and sets the right tone.  Even though one has to study the fine print on reduction of subsidies and government expenditure, the target of fiscal deficit of 4.7 per cent of GDP is laudable.
  

It is also heartening to note that the finance minister has now attached an implementation report for the previous years along with the budget.  This will make the process more transparent and accountable.