Inclusive growth augurs well for the long term

The overall focus of union budget 2007 on faster and more inclusive growth with a spotlight on rural development augurs well for the long term economic development of the country. This is a progressive and balanced budget from the economic perspective, said Jangoo Dalal, president and country manager of Cisco India & SAARC.

Prime minister Manmohan Singh said: "We need faster growth because, at our level of incomes, there can be no doubt that we must expand the production base of the economy if we want to provide broad-based improvement in the material conditions of living of our population, ..........But growth alone is not enough if it does not produce a flow of benefits that is sufficiently wide-spread. We, therefore, need a growth process that is much more inclusive, .......... and which also ensures access to essential services such as health and education for all sections of the community."

The government is also committed to e-governance, having increased the allocation both at the central and state levels, with a new scheme for manpower development in the software export industry. Computerisation programmes for the public distribution system and the Food Corporation of India will also enhance efficiency and benefit the common man, Dalal said.

The proposal to grant pass-through status to venture capital funds for undertakings in IT, biotech and other emerging sectors, and the service tax exemption for technology business services provided by technology business incubators and eligible incubatees will further encourage innovation and IP creation in India.

Significantly increased allocation to both primary and secondary education and innovative financing for infrastructure projects are positives and are imperative to sustaining growth in excess of nine per cent, Dalal said.