Multinationals And The Budget

This is a key finding of a recent survey conducted by EIU-IMA India, among 45 of the world's leading multinational corporations operating in India. The survey was conducted to assess the concerns and expectations of foreign investors with respect to the Budget and the performance of the Indian economy over the next six months.

What the budget might have in store

Multinationals expect that the government will present a positive Budget. A majority are confident that the Budget will carry forward the process of economic reform and that the government will not sacrifice fiscal prudence for short term political gains.

 

Their expectations seem to be based on the belief that the United Front government does not face an immediate threat. The Congress Party's recent reversal of fortune, as witnessed in Punjab and the Lok Sabha by-elections, has reduced the possibility of its withdrawing support.

The popular perception is that the Budget will reinforce the government's efforts to attract higher foreign direct investment (FDI). Executives expect the Budget to be pro-industry