Finance Minister had a very difficult challenge in balancing between growth and populism. In spite of the challenge, he presented a positive Budget balancing between growth imperatives and populist needs (in the light of elections being right the corner).To give momentum to investments in infrastructure and manufacturing, he introduced investment allowance. He brought to focus his intent of developing manufacturing corridors, ports and announced continuation of non-financial benefits for three years for MSMEs.

Classifying funding of incubators in technology institutions, as a contribution under CSR is a very positive development to promote innovation. He gave impetus to Electronics industry by reducing customs duty to 0 per cent on plant and machinery. Low-cost housing will get a boost, for the house owners will get additional deduction on interest. Housing has a direct impact on steel, cement, wood and glass industries. All this will lead to much needed growth in Industry.

By addressing issues relating to women, children and socially deprived classes, he made an attempt to bring inclusiveness into our society. It is admirable that he did not increase subsidies to food and fertilisers. By placing emphasis on the need for food security and right to education, he addressed all sections of society.

Increase in Budget for HRD by 17 per cent and substantially higher allocation to departments of Science and Technology, Space and Atomic Energy makes everyone to believe that Chidambaram is truly driving nation’s economy to 5 trillion dollars to figure in the top 5 economies of the world by 2025.

(The author is CMD, Infotech Enterprises Ltd)

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