G P Hinduja: Investments to spur job creation

The co-chairman of Hinduja Group said GST will help govt in revenue generation, growth

The Budget is aimed at making the economy more competitive and transparent. The high investment in physical and social infrastructure as well as digital connectivity will lead to creation of jobs. This in turn will lead to a wider tax base. The economy will be comfortably placed in the 8-10 per cent annual growth trajectory, despite the disruption caused by demonetisation and protectionism headwinds from the developed world. The reform in political funding is a very welcome move.

GST will make the government achieve its objectives in revenue generation and growth. It is hoped that rules under the GST scheme will be framed and made available to companies as soon as possible, so that they can be ready with modified IT systems to meet the scheme’s requirement.  

Another takeaway is containing the fiscal deficit at 3.2 per cent in FY18. It will have a positive impact on interest rates. The tax cut for micro small and medium enterprises with annual turnover of Rs 50 crore is a positive move too.  The emphasis on affordable housing and providing it the status of infrastructure will drive growth. Abolition of the Foreign Investment Promotion Board and putting 90 per cent of FDI on the automatic route are steps in the right direction.