Budget points to continuity

There is continuity in “what they are doing,” said Arun Bhagat, Chief Operating Officer, GMR Krishnagiri Special Investment Region, on the Budget.

The proposed measures on arbitration and conciliation was a welcome move especially in PPP where most of the problems come up, he said at a panel discussion on the Budget organised by the CII - Southern Region.

Ramesh Kymal, Chairman and Managing Director, Gamesa Renewable Pvt Ltd, and Chairman, CII Tamil Nadu, said the budget speaks about continuity and gave a major thrust on rural areas. Digital economy and demonetisation, which have brought more people into the tax bracket, and reducing income tax on people earning less than ₹5 lakh are positive steps.

According to Vikram Kirloskar, Vice-chairman, Toyota Kirloskar Motors, there is lot of thrust on stability, development in rural areas, infrastructure and the under-privileged people.

It was disappointing to see no mention about environment. “We are in a situation where we need to clean up environment with many Indian cities being rated amongst the worst in in the world environmentally. A big tax incentive for money to be spent on environment would have been helpful,” he said.

According to B Santhanam, Managing Director, Saint Gobain India, the good news is that there are no surprises, and the move is towards stable and continuous policies. When there is turbulence in rest of the world, India looks like oasis of stability.

The budget emphasises government investment at a time when private investment is sluggish. It will spur manufacturing and services. Halving income tax on individuals earning up to ₹5 lakh will spur consumption, especially after sluggishness due to demonetisation, he said.

“Demonetisation has nudged people towards compliance, otherwise there would not have been a 34 per cent increase in tax collections,” he said.