Bengal Inc says Budget ‘result oriented, to have positive impact on Indian economy’

Industrialists  have welcomed the  Union Budget  tabled  by the Finance minister Arun Jaitley in Lok Sabha on Monday. Commenting on the budget  Sanjiv Goenka, chairman RP- Sanjiv Goenka group said the budget was bound to have a favourable impact on the Indian Economy. “Having laid down a very good structural road map for growth, Jaitley has focused on the rural economy which should  create a strong demand.  The plan is to light up every village by 2018.  

“The proposed investment  of Rs 2180 crore on roads and railways should lead to a revival of demand for steel and cement.  The nine pillars identified and highlighted by the FM are well thought out. “The budget pays a great attention  to the demand side of growth which had been weakened recently  and act as a driver to faster growth, which may exceed present expectations,”  he maintained.

Sushil Mohta, president CREDI Bengal said, “In the line  with the government’s ongoing push with regard to affordable  housing and Housing for all by 2022,” Budget 2016 promotes and boosts affordable housing sector. The Budget seems wholesome favouring both consumers and developers. Exemption of Income Tax payment by the developers for housing units measuring up to 30 sqm in metropolitan areas and up to 60 m in non-metropolitan areas  shall result in creation  of  more housing stock in the affordable segment.

Reacting to the Budget, Srei Infrastructure  Finance Ltd Chairman and Managing Director Hemant Kanoria  said that this was the first budget in decades which had rightly given an implementation  base with the agriculture and rural segments.

“I think the specifics covered are practical  and would surely yield results. However, I  have not been enthused by the announcements  pertaining  to infrastructure, not because it has been neglected but  it does not have the specificity for Rohin Kapoor, Director, Deloitte in India - “Increased focus on quality & access have been the underlying theme for the education and skill development sector in this year’s budget. 

The announcement of a scheme to transform ten chosen public and  private institutions to emerge world class teaching and  research institutions and setting up of a Rs 1,000 crore fund for improvement of infrastructure in higher education institutions are commendable decisions. Although, the actual impact may not be that significant given the restricted coverage & quantum of the proposed scheme/fund. 

In case of skilling, the government has decided to set up 1,500 Multi Skill Training Institutes across the country & a board for certification purposes. Hopefully, formally skilled youth will be recognized for employment purposes in public and private sector.  

The impetus provided towards job creation and setting up of model career centers are also welcomed decisions. 

 Some pressing issues such as permitting ECB in building education infrastructure, ushering reforms to attract foreign investment, promoting online and virtual education, wide-spread coverage and removing service tax incidence on input services have not been suitably addressed in the budget  implementation  unlike agriculture.