Seeds sown for robust industrial growth: Neeraj Bharadwaj

Says FM deserves compliments for increasing FDI limits in insurance sector

By announcing a slew of measures focused on investment, compared to consumption, which includes development of roads, ports, airports and waterways, setting up of several industrial corridors across the country, and reviving Special Economic Zones, among others, the FM has sown the seeds for robust industrial growth.

The Budget, from the perspective of foreign investors, offers to establish a stable taxation regime. Whether it's retrospective taxes or taxes on foreign portfolio investments and transfer pricing, the new measures provide a much-needed support to foreign investors. The FM deserves compliments for increasing FDI limits in the insurance sector and defence-related manufacturing.

The government move to disinvest in public sector banks through public issues would lead to a resuscitation of the capital market. The various moves to incentivise the farm sector, including setting up of new warehousing facilities, deserve applause. Over time, these measures should bring in stability in food prices. About 33 per cent of India's farm produce gets wasted every year. Last, the new Rs 10,000-crore venture capital fund for providing seed capital to entrepreneurs of micro, small and medium enterprises is a wonderful move to spur future ideas and investments.

Neeraj Bharadwaj
MD, Carlyle Asia
Buyout Fund