Budget to pave way for double-digit growth, expand demand: India Inc

Feeling upbeat about Union Budget 2015-16, India Inc expressed the confidence that the proposals have laid down the roadmap for taking India to double-digit growth and the steps to add money in the hands of the consumers would add a lot of comfort to them and help expand demand for goods and services.

"This budget has laid down the roadmap for taking India to double-digit growth. We not only see a clear direction in which the economy is going to be steered but also the key milestones that we need to cross on the way," Jyotsna Suri, president of the Federation of Indian Chambers of Commerce & Industry said.

"The budget has also given a huge boost to the Make in India programme by correcting the inverted duty structure in 22 thrust sectors and by allowing complete tax pass-through for both category 1 and category 2 Alternative Investment Funds," she added.

The steps to add money in the hands of consumers and build their future would add a lot of comfort to consumers and help expand the demand for goods and services, opined Chandrajit Banerjee, director general of the Confederation of Indian Industry.

"Industry looks forward to attaining the double-digit growth trajectory which is eminently attainable through the prudent navigation of Budget 2015-16," he also added.

Budget 2015-16 meets the present requirements of the Indian economy and outlines a comprehensive vision for citizens with strong focus on growth, investment, job creation and social security, Banerjee said.

"The budget would strengthen the investment cycle and build the savings pipeline while also channelising funds into much-needed infrastructure," he added.

Re-balancing the public-private partnership (PPP) models and asking the government to take risks would motivate the private sector in infrastructure and some of the announcements like prior clearances for ultra mega projects would improve ease of doing business," Rana Kapoor, president of the Associated Chambers of Commerce and Industry of India (Assocham) said.

"Tax-free bonds for infra sector is also well thought out, while headroom to be given from the fiscal space to fund growth is a significant measure. Correct targeting of subsidy disbursals through DBT would bring in fiscal discipline," he added.

"More money in the hands of states would bring in growth from grassroots, reduction in corporate tax to 25 per cent from 30 per cent in a phased manner is a welcome move even though the businesses should be prepared to forego exemptions," Kapoor further said.

"Battle to combat 'Black Money' must be continued and the new Acts are welcome," Alok B Shriram, President of the PHD Chamber said.

However, due care is to be taken to ensure no misuse or harassment to honest tax payer, he added.