It is a comprehensive and broad-based budget that caters to some very important sectors of the economy like agriculture, MSME (Micro, Small and Medium Enterprises), education, tourism and exports, says Keki Mistry, the Indian financial sector veteran and on the board of leading institutions like the HDFC Bank. Describing it as a “very pro-consumption budget, Mistry, who is on the board of HDFC Bank apart from the he says, it is the corner stone of the budget.” The income tax exemption limit being raised from Rs 7 lakh to 12 lakh, he says, “will help spur consumption and increasing the demand for goods and services, which again will trigger a virtuous cycle with a boost to manufacturing that will follow.”
These measures, he feels, will a lag will lead to a pick up in the private sector Capex.
The budget also focusses on ease of doing business and in this context the efforts to bring about regulatory reforms do stand out, he says.
He feels all these measures need to be seen in the backdrop of the budget not losing sight of fiscal prudence. This, he says, is crucial as it could help India get a ratings upgrade at some point of time.
The budget addresses the concerns on two important fronts – growth and employment generation, says Keki Mistry. For growth, the series of measures announced in the budget will lead to ultimate spending by the private sector. The emphasis on the agriculture and the MSME sectors, he does feel, will lead to more job creation.