Post-Budget quote from M.D. of DesignTech Systems Vikas Khanvelkar:
Increasing FDI CAP in insurance sector to 49% will be good for the sagging insurance sector, but creating investment friendly climate to attend such FDI is important. Broad policy indicators to attain growth at 7-8 % and plan to reduce Fiscal deficit to 3% over two years are ambitious but are really welcome moves and show government’s commitment to improve and stabilize the economy. However all these fiscal measures will lead to prise increase in the short term. It would have been nice if special incentives for exports would have been announced for the SME sector. This would have encouraged the SMEs to go global and boost the exports.
Reinitiating the project to link rivers across India is commendable once done this will surely address our water shortage issues permanently.
Increasing annual PPF saving limit to Rs. 1.5 L is a small relief for middle class people and will encourage savings.
Increasing Defence allocation is a must in today’s terror prone global environment. This will help modernize our weapons and equipment.
10 year Tax holiday to power companies who start production by March 17 will encourage and accelerate investments in much needed power sector and will help reduce power shortage.
Reduction of duties on branded clothing, computers, TVs, footwear etc will increase the business of all theses consumer goods and will help boost FMCG and consumer durable sales
This is overall encouraging budget for the industry.