‘The Budget makes us optimistic for the future’

I was quite eager to see the proposals this Budget rolled out and more than curious to know the impact of demonetisation on the Budget measures and the proposed launch of GST on July 1, 2017.

As a management consultant, the statements which caught my eye were:

The abolishment of the Foreign Investment Proposal Board (FIPB), sending a clear signal to foreign investors on the ‘ease of doing business’.

Continuing the drive for a ‘cashless economy’ by proposing a cap of ₹3 lakh on cash transactions, withdrawal of service charges on railway e-tickets and promising more for a digital economy.

As a consultant facilitating foreign companies to establish an Indian footprint, the abolition of the FIPB sends clear signs of encouraging investment in India.

Coupled with the initiatives on extending visa on arrival for citizens of many countries and the emphasis of the government on eliminating corruption, the Finance Minister is sending a clear and focused message to potential investors on selecting India for their operations. I hope these moves will make me busier than ever.

The continued focus on ‘Swachh Bharat’ initiatives in this Budget is a welcome measure in creating awareness and improving sanitation all over India. As a resident of Chennai, which has its own share of garbage problems, I hope this translates into a cleaner city for all of us.

I would have also expected more focus on the renewable sector, especially on biogas which could have dovetailed with into ‘Swachh Bharat Abhiyan’. Being involved also in the setting up of waste treatment plants, I know this can play an important role in containing the tonnes of waste our cities generate.

Granting ‘infrastructure’ status to affordable housing is a welcome move, although the impact on affordability for the common man, especially in urban areas, remains to be seen. Having relocated to Chennai after working abroad for several years, I know how difficult it is to secure affordable housing in a major city.

The ‘Make in India’ programme launched in 2014 was viewed as an ideal policy to position India as a global hub for manufacturing and design and to encourage Indian entrepreneurs as well as global investors. Over the past two years, having dealt with many companies abroad, I have not seen this programme get any traction. Given the state of the Chinese economy, a thrust on this programme to revive manufacturing, especially in the SME and MSMEs sectors in India, would have been a fillip to this dying sector, with which too I deal with closely.

With no major improvement in infrastructure, India seems to have lost the opportunity to provide an ideal manufacturing base for multinationals wanting to relocate and commence manufacturing operations in India. Sadly, the ‘Make in India’ is one scheme that does not merit noteworthy mention or incentives in the Budget.

For Padma, my artist wife, and daughter, who is in the early stages of her career, reduction of income tax from 10 per cent to 5 per cent on income below ₹5 lakh is only a marginal relief. Our family understands that reforms are a long-drawn process.

We are happy the government has made bold initiatives to tackle corruption and encourage a cashless economy. The Budget, while not path-breaking, is a move in the right direction and we are optimistic for the future.

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