The Budget proved to be a 'high-on-intent but low-on-action' affair and this was magnified on account of the huge expectations that India Inc had built from it.
It is a workmanlike Budget which has maintained its focus on inclusive growth but has remained silent on a number of critical issues including a specific roadmap for implementing Goods & Services Tax (GST) and Direct Tax Code (DTC).
Enhanced spending on infrastructure and addressing certain supply bottlenecks in agriculture, coal and power are some of the positive developments in the Budget.
While it was acknowledged that the government has limited fiscal space to manoeuvre, there is a notable absence of progressive policy action in the area of public delivery mechanisms, labour laws, natural resource management (notably, mining and hydrocarbons) and land acquisition, all critical areas that could spur investment inflows.
However, we expect that the government's efforts will continue outside the Budget, which could aid business sentiment going forward.
