The Budget reflects an intention to put the economy on the path of double-digit growth, while executing challenging reforms in critical areas.
From a macroeconomic perspective, the central government has done well to meet the fiscal deficit target of 4.1 per cent of GDP. The Budget provides an impetus to the Make in India vision.
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An increased investment in the infrastructure sector of Rs 70,000 crore and a higher allocation of Rs 2.46 lakh crore for the defence sector will boost the domestic manufacturing sector and create employment opportunities.
These investments would increase the share of manufacturing in the GDP (gross domestic product) from 15 per cent to 25 per cent.
As a follow-up, we now expect the central government to speed the new defence procurement policy to facilitate larger private-sector participation in defence production.
The five ultra-major power projects (4,000 megawatts each), allocation of funds for the Delhi-Mumbai Industrial Corridor and more opportunities for medium and small industries, among others, will all empower the manufacturing sector.
Several measures, such as the avoidance of retrospective taxation, will enthuse both domestic and foreign investors.
Chairman and MD, Bharat Forge Limited