To start with, the budget is unlikely to have any significant negative impact on the economy. It may, in fact, do a lot of help if the good intentions are followed by effective implementation. Revamping of MRTP and IDR Acts, ensuring FDI approvals in 30 days, expansion of automatic FDI approval list, decentralisation of centrally sponsored social schemes, emphasis on agriculture and social sector are measures in the right directions.

On the industrial front too the intentions are in the right direction but whether it is enough to kickstart the economy, only time will tell. The rationalisation of the excise and import duty structures is a bold and welcome move. Reduction in capital gains tax for resident investors to bring it on par with FIIs and exempting income from mutual funds from income tax will move money to the capital market and should go a long way in bringing back the retail investors who have deserted the bourses.

The emphasis on housing sector throughtax benefits and infrastructure, especially roads through a cess on diesel is likely to give a fillip to the cement and steel industries. The surcharge on corporate tax will have a dampening effect especially coming at a time when the industry was expecting a path breaking budget from the finance minister.