Budget 2015 presented by Arun Jaitley is innovative and socially inclusive, laying out the roadmap to put the country on a double-digit growth trajectory in the medium term. With a higher transfer of tax revenues to the States, the latter have been made equal partners in the effort to ensure balanced growth across regions.

Maintaining fiscal discipline despite sharing more resource with the States will enhance the confidence level of foreign and non-resident Indian (NRI) investors and make India a favoured destination for their investments. The higher capital expenditure proposed to build physical and social infrastructure — irrigation, power, electronic connectivity, roads, rail lines, ports, education, skill development and healthcare — will bring supply-side improvements, create jobs, promote entrepreneurship, and rejuvenate the economy with moderate stable inflation and alleviate poverty.

The positive changes made in corporate taxation and introduction of GST will lead to higher investment and economic growth. The tax breaks will give a push to PM’s Make-in-India campaign.  Strong measures have been proposed to prevent the growth of black money in India and abroad.  However, steps should have been taken to bring transparency in political funding, which is the root cause of corruption and black money.

The writer is Global Chairman, Hinduja Group

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