Specific proposals to lower indirect taxes and leave the direct taxes alone should help markets with lower product prices and the economy grow with low impact on inflation.
The lower deficit levels will also allow greater manoeuvrability to the government to support building greater social and economic infrastructure. Continued emphasis on infrastructure development is an imperative, as this is a seriously unfinished agenda.
Good intentions to create a more enabling environment for the bond market and more liberal allowance for investment in global markets are welcome news for capital markets as a whole.
Industries that have a good ability to benefit larger sections of the population including employment, economic growth, foreign exchange earnings and utilise home labour skills, such as textiles, food processing and tourism have been singled out for favourable support.
The writer is MD & CEO, CRISIL