Govind Shrikhande, Customer Care Associate and Managing Director, Shoppers Stop LimitedThe Union Budget is set amidst a complex geopolitical atmosphere punctuated by the US Fed rate, global protectionism and oil prices and a muted domestic sentiment owing to demonization. Against this challenging backdrop, the government’s efforts to maintain the fiscal deficit at 3.2 percent, CAD at 0.3 percent, forex reserves at USD 361 billion and increase FDI flow by 36 percent are indeed commendable.
The Union Budget is clearly strong on macro-economic intent, as is evident from the FM’s focus on agricultural growth, rural development, up-skilling of the youth, war on black money and pushing the digital economy, among others. Focused initiatives for rural growth through infrastructure investments, housing and financial assistance to farmers will boost agricultural growth and bolster the farm-to-market chain.
In line with the PM’s vision to dismantle bureaucracy, the FM’s announcement to abolish the FIPB and further liberalise the FDI policy deserves a round of cheer! The government’s continuous focus to bolster the digital economy is definitely applause-worthy.
On the flip side, Lack of more announcement of more details on GST is a disappointment.
Modification of the Income Tax in the sub 5 lakh slab to 5 percent could moderately boost consumption. Here again, consumers seem to have been left wanting for more. We were hoping for broader and more impactful changes to boost consumer demand.
Overall, the budget has focused on measures to sustain India’s poster-image of growth against the backdrop of an otherwise dull global economy. And while, the Finance Minister may have endeavored to ease the burden of the common man, he doesn’t seem to have met the mighty burden of expectations on this budget.
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