The Union Budget is rural-centric.
Given two consecutive bad monsoons, the finance minister's focus on this segment was much needed. With total allocation for agriculture and farmer welfare at Rs 35,984 crore, this Budget will bring smiles on faces across rural India. Infrastructure is another point of focus for the government. Given the total outlay for infrastructure pegged at Rs 2.21 lakh crore, we can expect employment generation to take place at the ground level. This would also be significant in increasing consumer demand, which in turn will benefit the industry.
Read our full coverage on Union Budget 2016
With regard to taxation, the Budget does not have a lot for large corporates. Rather, it has addressed issues that concern the common man, especially salaried individuals. But then again, the corporate tax has been lowered for corporates with a turnover of Rs 5 crore or less.
This move explicates the idea of promoting a start-up friendly economy. This is completely in line with the
Startup India programme that the government has launched. Not just that, this move will also encourage entrepreneurship and skill development across the nation.
The power sector also has had its fair share of incentives, though not all are specifically spelt out in the Budget. There are two vital announcements for the power industry. One, is the increase in cess on coal, which will encourage use of renewables. And two, the 100 per cent rural electrification goal by 2018 will definitely drive the sector forward.
Sumant Sinha
Chairman & CEO, ReNew Power
