The Union Budget for 2019-20 is growth-oriented, uses a variety of methods to bolster investment cycle led by government spending and overall is positive, BSE MD & CEO Ashishkumar Chauhan said.
The budget has outlined several new reform initiatives like big privatisation push, relaxation of norms for foreign portfolio investors, further liberalisation of foreign direct investment (FDI) policy, a new policy on rental housing and most importantly, incentives for faster adoption of next generation technologies such as electric vehicles, he said.
In a report titled "Union Budget 2019 - A Blueprint for a USD 5 trillion economy", Chauhan said, "The Budget advocates policies via four pillars of thrust that can push the Indian economy to a level of USD 5 trillion - in sync with Prime Minister Modi's vision."
The first continues to focus on increasing investment led by government spending. The budget emphasises on removing critical bottlenecks that hinder the growth of the economy in the second pillar of growth, he said.
The primary challenge facing the government is jobs, and the third pillar focuses on job creation and type of jobs for the future.
In the fourth pillar, the Finance Minister rolled out number of steps to boost core areas such as agriculture, healthcare, education, social welfare and rural development, he added.
A number of measures for capital markets and IFSC, in consultations with regulators are also proposed.
"Overall, this is a positive budget, with continued focus on fiscal prudence, boosting infrastructure, augmenting MSME's and NBFC's, improving skill development and focus on next-gen technologies," he added.
According to Chauhan, the government in its earlier term was largely focused on repairing the stressed banking system and undertaking structural economic resets.
In this term, the expectation from the government was to propel the economy and break away from the barriers holding it back.
"In this regard, the finance minister, in her maiden speech, has delivered a bold budget. The budget is growth oriented, spurs private investment, keeps government's fiscal consolidation track record intact and uses a variety of methods to bolster the investment cycle led by government spending," Chauhan added.
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