Tremendously positive

COMMENT: AJIT RANADE, Chief Economist, Aditya Birla Group

"Reduction in peak Custom duties and rationalisation of excise are on predictable lines".

The Budget is high on predictability and continuity of reforms. On that count alone it is tremendously positive.

There has been remarkable progress in fiscal consolidation, which has largely come through a pro-cyclical impact of growth. Buoyancy in tax revenues is due to resurgence in manufacturing and services.

The excise relief to small cars could go a long way in making India a global hub for small cars. More importantly, the Budget expenditure pattern also reflects that the quality of spending has improved with greater focus on capital spending. Reduction in peak custom duties and rationalisation of excise duties are on predictable lines.

There were strong signals on an enhanced focus and spending in infrastructure and social sectors. Development of rural public goods along with doubling of farm credit through both institutional and non-formal channels should aid agricultural growth.

The progress on highway projects and desire for an early closure of some mega power projects mean we should see some action on infrastructure.