Aiming for higher growth, the budget announced several measures including doubling of outlay for accelerated irrigation, waiver of loan, higher agriculture credit and development of water bodies. Emphasis on micro irrigation will help in increasing yield, quality of produce and effective utilisation of water and inputs like seeds and fertiliser.

Automobiles and auto ancillaries

For a sector riddled with high input costs and interest rates, the excise duty cuts are timely. With auto manufacturers announcing price cuts soon after the budget, lower prices should boost volumes of existing as well as forthcoming models such as the Nano.

The excise and CENVAT cut will also help auto ancillary segments such as tyres, which derive a large share from the replacement market. The increase in exemption limit for individuals will be the biggest booster for this consumption driven sector. The tax relief offered to farmers might spur the demand for farming equipment and benefit tractor makers.

Image: Farm labourers pack fresh potatoes in a field at Dehgam, some 30 kms from Ahmedabad.

Photograph: Sam Panthaky/AFP/Getty Images

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Also read: Tax: How you are affected