A sense of energy

This is a directional Budget towards setting a long-term roadmap 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 the FDI limit in Insurance, Defence, e-commerce sectors, it has given a clear and positive signal on the approach to retrospective tax.

Kick-starting growth A 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 kick-starting economic growth through investment in infrastructure. We also welcome the steps to bring in private capital into the sector. We welcome the announcement of 3P India — the agency to streamline and address the issues that the developers have been facing.

Critical financing support that the infrastructure sector was seeking — such as long term-financing by the banks, banks raising capital for funding infrastructure with CRR/SLR reductions, development of the bond market — have been given the green signal. Various enablers have been set for banks to fund infrastructure.

Announcements on the equity side have been encouraging — liberalising ADR/GDR regime. Fresh award of road and airports projects which is significantly higher than last year would be critical to kick-start the capex cycle. The Government’s focus on smart cities is evident by the announcement of 100 smart cities. Due impetus has been given to other sectors. Inland water transport, which is a first step towards larger water transport policy, new ports and urban development would take Indian infrastructure to the next level.

In order to facilitate work on industrial corridors a dedicated corridor agency has been announced, which is a long-term positive. In energy sector, allocating fuel to coal-based power plants getting commissioned before March 2015 has been announced along with extending tax holidays. The high priority given to new and renewable energy is also crucial in creating long-term energy security. There is a pragmatic rationalisation of customs duties and simplification of the indirect taxation regime with rollout 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.

Touching all sectors Apart from education and agriculture, the focus is on women welfare and safety, hygiene and sanitation and increasing household savings. Broadband connectivity to villages would go a long way in creating rural upliftment. It has also been a boost for the common man as the investment limits have been enhanced Overall, this has been an appreciable attempt to positively touch all the sectors and sections of society and we look forward to its successful implementation.

The writer is Group Chairman, GMR Group

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