Responsible and pragmatic: Amitabh Chaudhry

There has been a high level of focus on financial and capital markets with a slew of measures

This Budget reflects a tightrope walk by the FM, given that he has to bring back investor confidence, spur investment and growth, as this might be the last full Budget before the 2014 general elections. The Budget has several measures to encourage foreign investment, and the FM reiterated that 'doing business in India must be seen as easy, friendly and mutually beneficial'.

The Budget is a responsible and pragmatic one, with focus on several initiatives that should spur growth, such as 3,000 km of road projects, as well as fast-tracking of stalled projects in FY14; 15 per cent deduction on capital investment in manufacturing sectors over Rs 100 cr, and allowing infrastructure sector to raise long-term low cost debt, among others.

There has been a focus on financial and capital markets with a slew of measures, such as increased investment limit on RGESS and allowing them to invest in mutual funds, launching of inflation-indexed bonds, introducing of India's first women's only bank with a capital sanction of Rs 1,000cr, allowing banks to act as insurance brokers, etc. With respect to the life insurance sector, certain measures such as using KYC done by banks, extending group insurance to homogeneous groups such as SHGs, opening of branches in Tier-II and -III towns without IRDA approval and appealing to the government to pass the long-pending Insurance Amendment Bill are in the right direction. Increase of surcharge (from five per cent to 10 per cent) would result in a higher tax bill.

Amitabh Chaudhry
Managing director and chief executive officer, HDFC Life