FDCI chairman Sunil Sethi's take on best, worst things in Budget

Does the Budget address the distress caused by the pandemic?

Even though the pandemic has affected everyone, I feel there are many things the Budget could have addressed. There is no doubt that infra spending is a good way to create more employment and will bring down unemployment, but I feel it is still a slow and painful process. Direct cash distribution is faster and more effective, which the western world did. But India does not have those kinds of resources. Addressing mental health was the need of the hour and the announcement of 23 tech mental health centres was certainly a silver lining.

Will this Budget help the economy and create jobs?

It is a capex- and infra-oriented Budget. There is no doubt that an increase in capex by 35 per cent towards capital goods, solar, defence, etc will be able to bolster the economy and create jobs. The key will also be to create jobs, to support the MSME sector and the unorganised sectors. Seventy million MSMEs can create almost 200 million new jobs, if required. It will be more helpful if support can be provided to this segment.

What is the best thing about the Budget? And the worst?

The best is the continuity of policies and no major tinkering and surprises. The new-age investor was looking forward to something on crypto. A 30 per cent tax on it and digital rupee by the RBI is a forward-thinking decision. Considering the problems and demands of the farmers today, the focus on the digitisation of the agriculture sector is also a good move. Since one of my areas of expertise is textiles, I am keen to find out more details about several duty exemptions that have been granted to capital goods in this sector.

The worst thing: No change in income tax slab rates is going to affect the middle class. It was highly anticipated, given the high inflationary scenario, that there would be some tax breaks for this segment. However, the Budget did not fulfil that aspiration.

Does the Budget make India a better investment destination?

India is a good investment destination already with the highest GDP growth in large economies. Venture capital and private equity invested more than Rs 5.5 lakh crore last year, facilitating one of the largest start-up and growth ecosystems. According to the FM, over 25,000 compliances were reduced and 1,486 Union laws were repealed. This is the result of our government’s strong commitment for “minimum government & maximum governance”, our trust in the public, and ease of doing business.