Attempt to revive manufacturing, thrust on Infrastructure
This is a directional Budget towards setting a long-term road map for fiscal responsibility as well as development. There has been a visible balance that the finance minister has struck between social as well as economic development.
While larger foreign participation has been invited by enhancing FDI limit in insurance, defence and e-commerce sectors, it has given a clear and positive signal on the approach to retrospective tax.Strong attempt has been made to revive the manufacturing and MSME sector and render the much required thrust on the revival of the infrastructure sector.
There is a clear focus on kickstarting growth through investment in infrastructure. We welcome the steps to bring in private capital. We welcome the announcement of 3P India — the agency to streamline and address issues that developers have been facing. Critical financing support the infrastructure sector was seeking — like infrastructure trust, banks to raise capital for funding infrastructure with CRR/SLR reductions, development of the bond market — have been given the green signal. Fresh award of road and airport projects which is higher than last year will be critical to kickstart the capex cycle.
Due impetus has been given to other sectors — inland water transport, which is a first step towards a larger water transport policy, new ports and urban development. To facilitate work on the industrial corridors, a corridor agency has been announced. In the energy sector, allocating fuel to coal-based power plants getting commissioned before March 2015 has been announced along with extended tax holiday.
There has been a pragmatic rationalisation of customs duties and simplification of the indirect taxation regime with roll out of GST in due course and no retrospective tax. The government has given equal weightage to social development through announcement of new IITs, IIMs and AIIMS. This will help create a backbone for quality manpower for the future.
Overall, this has been an appreciable attempt to positively touch all sectors and sections of society and we look forward to its successful implementation.