Given the current environment, the Finance Minster has presented a realistic and responsible Budget. While he has spent on the welfare schemes, specifically targeted at women, youth and the poor, he has generally been conservative in the spending. His acknowledgement of the criticality of continued inflow of foreign investments for augmenting the country's growth has been the most reassuring aspect of the Budget.
The deferment of he General Anti-Avoidance Rule (GAAR) to April 2016 will help in creating a conducive climate for foreign investors. Moreover, positive measures such as the introduction of investment allowance, impetus to road projects and higher tax break for housing loans should kick start the investment cycle and usher in growth.
The finance minister has set the stage to enable India to step up from the current growth rate of 5.5 per cent and aim for its true potential of 8 per cent instead. With this, India should be well on its course to becoming the 7th largest economy in the world by 2017.
Deepak Kapoor
Chairman, PwC India
Chairman, PwC India
