The most significant expectation from the Budget is a framework which brings back the confidence and energy of investors, and revives capital-formation and investment climate in the country.

Without a major improvement in this policy framework, the much talked about Make in India campaign will struggle to take off and fulfil the stated objective of generating sufficient employment.

While the phased reduction in corporate tax rates, as promised by Finance Minister Arun Jaitley, is expected, there are concerns about removal of current deductions available to Corporate India.

Support through appropriate incentives is a must to encourage investments in large, long-gestation and risky projects.

Large investments and employment generating initiatives need support with appropriate tax breaks.

The favourable situation of low energy and commodity prices needs to be leveraged by going a little easy on achieving fiscal-deficit target and creating infrastructure and manufacturing facilities faster.

Despite being an essential commodity, cement is one of the most heavily taxed, as if it is a luxury product.

Taxation on cement must be brought at par with the steel sector.

The inverted duty in the industry needs to be addressed immediately. Import duty on inputs for cement being higher than that of the finished products is a travesty and needs government attention.

Bigger allocations for the much required irrigation and infrastructure projects must be facilitated. Targeted schemes to boost housing sector will also help regain demand growth. The growth this year is languishing at just over 2 per cent.

Further, as a boost to the use of renewable energy and saving natural resources such as coal and oil, co-generation of energy by the cement industry through use of recovered waste-heat needs fiscal incentives.

The writer is Managing Director and CEO, Orient Cement

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