Budget will provide comfort to investors over macro-economic stability

29 February 2016

Kaushal Sampat, President & MD India, Dun & Bradstreet

''In the backdrop of the prevailing domestic and global economic scenario, the government has delivered a well-balanced Budget that has adhered to the fiscal consolidation road map without compromising on the development agenda. This should provide comfort to investors from the macro-stability perspective. Moreover, the Rs 2.18 trillion outlay on roads and railways, along with initiatives in the housing, construction and the electricity sector is a great positive for the infrastructure sector. There have been, however, areas which have caused certain disappointment such as the Rs 250bn towards recapitalisation of public sector banks - which seems a tad inadequate and the return of the dividend distribution tax. That said, a number of systemic interventions is what sets this budget apart. Measures such as a one-time scheme for dispute resolution for pending retrospective tax amendment case, the bill to amend Companies Act, proposed introduction of the bankruptcy code, focus of digital economy are significant moves that could go a long way in improving the ease of doing business in India. Overall, agriculture, infrastructure, social & rural sector and small Entrepreneurs are the largest beneficiaries of this Budget. The strong accent on rural sector is a significant move that is aimed at reviving rural consumer demand.''

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