By Ajay Piramal

India has come a long way from being a fragile economy to a beacon of growth amidst a  slowing global economy. When the rest of the world is struggling with geopolitical  issues, trade setbacks and high indebtedness, India has a strong opportunity to position  itself as an economic powerhouse. In my opinion, today’s budget was in this direction,  with a judicious balance between reforms and fiscal management. I must thank the  Finance Minister for laying a growth focussed roadmap that is inclusive of every Indian  economic stakeholder, right from the farmer, to urban consumers to industrialists,  investors and regulators.  

I am encouraged by the income tax moderations announced today. I feel this will enable  a vast majority of the 110 crore mid-income and aspirational population to increase  spending. With 60% of our GDP composed of domestic consumer spending,  synchronous growth in demand will certainly give a boost to growth.  

Additionally, the budget strikes a perfect chord with the need of the hour, i.e ease of  doing business. Bureaucratic processes, archaic laws and inflexible regulatory  requirements are a big obstacle for productivity and job creation. I am happy that the  government has been acknowledging the relevance of trust led light regulatory  ecosystems for both financial and non financial industries. There must be a balance  between regulations (associated compliance costs) and growth. While I appreciate  India’s robust financial regulatory system has been instrumental in safeguarding us  from global volatilities, however, there is much scope for moderating some of these  regulations to support business and boost employment. A steady reduction in policy  rates in FY26 can be a good starting point. Similarly, IBC needs to ensure much shorter  timeframes from admitting a case to its resolution.  

Also, I must commend the Government for increasing FDI limit in India’s insurance  sector. Easing foreign participation can help attract global capital and best practices  thus instilling a healthy competition for the betterment of the end consumer. This  decision can go a long way in Government’s target of “Insurance for All” by 2047, rising  from a mere 4% currently.  

I am confident that India’s economy will soon come out of its current sluggishness and  today’s budget will be a key enabler with its targeted allocation across categories with  high multiplier eƯects. 

The writer is Chairman of Piramal Enterprises Limited 

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