A leading business body in the US today hailed India's 2015-16 Budget as a bold roadmap for improving the ease of doing business in the country.
The US-India Business Council (USIBC), a business advocacy organisation representing global companies investing in India, said many reforms announced in the budget targeted to encourage infrastructure development, modernise capital markets, reduce tax uncertainty would spur domestic economic growth.
"We applaud Finance Minister Arun Jaitley for today's ambitious reform agenda and welcome concrete policies that demonstrate the Government of India's commitment to a new era of growth," said USIBC president Mukesh Aghi.
"US companies stand ready to partner with the Government of India on priority initiatives including Smart Cities, Make in India, Jan Dhan Yojana National Financial Inclusion Mission, Clean India, and Digital India. This Budget provides us positive steps forward in strengthening this partnership," said the new USIBC president.
USIBC, he said, supports the commitment to expeditiously implement a Goods and Services Tax (GST) regime by April 2016.
"Once implemented, the GST will dramatically increase government revenue while streamlining operational and cost planning for businesses and could increase India's GDP growth rate by 1-2 per cent by establishing a free-trade zone within its own borders," he said.
A delay in implementation of the General Anti-Avoidance Rules (GAAR) is a welcome move which will allow time for critical business planning, he said.
"Reduction in the corporate tax rate and a more clear direct tax regime - both key announcements of this budget - will rejuvenate the investment outlook and increase predictability," the statement said.
USIBC also applauded the focus on infrastructure, including rejuvenation of public-private partnerships, the announcement of a National Infrastructure Investment Fund to provide public capital in support of increased private investment in infrastructure, and steps toward bankruptcy reform which will unlock liquidity in stalled projects.
USIBC hailed the budget for allowing foreign investment in Alternate Investment Funds - a long-awaited reform - as well as important steps toward developing a more robust pension system providing financial stability for all Indians.
