The Budget Is A Great Beginning Towards Bringing Back "Acche Din" For India: Govind Shrikhande

Every new innings requires a steady approach and resolve.

Especially so, when the economy is soft, global conditions are unpredictable and overall confidence is  low.

The First budget by the BJP government, takes a Confident and Sound approach to the issues, considering the legacy of problems they have inherited from the earlier government.

The Budget has Five Key Focus areas:

1. Kickstart Economic Growth and infrastructure:

A number of Steps are visible in this direction

Increase in FDI limits in Defence & Insurance

Funds for Smart Cities

Funds for Rural Housing, Rural Power, Agriculture Fund 

Rail Connectivity in North East

Warehousing Quality Improvement

Revival of SEZ's

Investment in Ultra Modern Solar projects

E-Connectivity with Government

Bank loans for Infra projects, REITS, Tax holiday for power Projects 

Each of these is bound to have a multiplier effect on Investments, GDP growth and Job Creation.

2. Taxation

Higher Exemptions in Salaries, Investments, PPF would lead to more money in the hands of Consumers.

Lower taxes in a few products would lead to lower prices and taming inflation.

This again can lead to higher savings as well as spending and therefore can give a boost to the economic activity.

3. Multi Skilling and education 

More funds for Skill India

Establishing 4 New AIIMS

Establishing 5 new IIT's

New Agriculture University

New Sports University 

All these should improve employability of Youth.

4. Fiscal discipline

The Finance Minister has taken a Brave Target of achieving a 4.1 % deficit target.

The target is tough but the resolve is worth appreciating.

The announcement of getting GST on track by December is good news for managing the long term Fiscal discipline and Taxation.

5. Industry:

Retrospective taxes will never happen again.

New Industrial and textile clusters

Rs 10000 Crore Fund for start ups

IFRS from 2016

Each of these are sound steps to get the industries' confidence back 

There are many small doses aimed at specific issues like drinking water etc

In summary, the budget is a great beginning towards bringing back "Acche Din " for India.