Retrospective tax not addressed: Harsh Mariwala

I feel let down by the Budget. There were high expectations from the finance minister and I was hoping there would be some big-bang announcements made today. Unfortunately, nothing happened. Yes, the Budget has given a push to the infrastructure sector. There is emphasis on boosting rural demand by increasing the allocation to the rural development ministry. But, these proposals will take some time to show an impact on the ground.

So, will the economic environment improve dramatically in the short term? The answer is no. Going forward, I see GDP growth in the region of six to 6.5 per cent as opposed to about five to 5.5 per cent this year. However, the finance minister should be complimented for his effort to boost growth with these measures.

There has been an attempt to contain the fiscal deficit. This is critical because it is putting enormous pressure on the economy. I would have liked if the government would have made some announcement like they did with Aadhaar or GST a few years ago, or announced some schemes to get money stashed abroad back into the country. There has also been a trust deficit among investors due to the retrospective tax amendments announced earlier. Nothing was announced to correct the perception that you get penalised for investing in India. All in all, a neutral Budget.

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Harsh Mariwala
Chairman & Managing Director, Marico