Clearly it is a growth-oriented Budget. Recognising that inflation is structural, the Finance Minister has introduced proposals on fiscal consolidation. The target to reduce central subsidies to under two per cent by leakage proof delivery is a critical step. Allowing qualified foreign investors to access the Indian corporate bond market, permitting two-way fungibility of Indian depository receipts is a bold move. Relaxed external commercial borrowing norms and enhancement of tax-free bonds should provide a much-needed push on infrastructure financing. Going by what we heard, I think we will see more FDI in the aviation and retail sectors. Taking into account the shortfall in tax collection and recent judicial rulings, substantive changes have been made to increase the tax base and plug tax leakages.
Deepak Kapoor Chairman, PwC India