5-year rebate on R&D is encouraging

The Finance Minister has presented a balanced Budget given the compulsions and dynamics. I am sure the industry expected a Budget on the same lines. I see a sense of acknowledgement and a clear focus on domestic demand driven growth recovery and emphasis on striking a balance between fiscal consolidations and strengthening macroeconomic fundamentals.

In my view, the manufacturing industry has to play a critical role in the overall economic development. Design innovations and focus on R&D need to play a pivotal role. The announcement of a 5-year rebate on R&D is extremely encouraging. The industry needs a direction, supported by increase in policy intervention to drive innovation, which in turn will favour domestic manufacturing. Aadhaar, for instance, has the potential to position India as an innovation leader. The project will contribute largely in delivering the benefits of development to masses and is linked to several important schemes such as MG-NREGA, PDS and other Financial Inclusion initiatives. The 13 per cent increase in allocation to the UID project is indicative of government's commitment and will benefit the IT sector immensely. The Budget does point towards the implementation of the much-awaited GST, however I feel concrete steps are needed now.

(The author is Founder HCL and Chairman, HCL Infosystems)