Andrew Holland: Markets enjoying lack of negatives in Budget

Expert take on Budget 2017

There is nothing ground breaking, but there is nothing negative either. There is nothing that’s bad about this budget. That’s the reason why the markets saw a huge rally post the budget proposals were unveiled. There consistency on the affordable housing which is a key positive. 

On the taxation front, I don’t see any big increase in anyone’s pay packet. On the contrary, those earning above Rs 50 lakh will pay an additional 10% surcharge. In a nutshell, the budget proposals have been a continuation of the policies that the government has followed over the years – i.e. spend on infrastructure and housing. 

The abolition of Foreign Investment Promotion Board (FIPB) is a welcome step and this signals that India is more open to the outside world. The transparency is political funding is another welcome move. As far as I am concerned, there are no negatives in the budget proposals.

Clarification on offshore taxation proposals is a welcome step and the foreign investors are likely to see this as positive development. Most FIIs, in my view, will see the proposals as a continuation of the existing policies of the government – and that is a positive. The markets and investors are enjoying that there are no negatives in this budget.


(As told to Puneet Wadhwa)

The author is CEO, Avendus Capital Alternate Strategies

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