Vishal Kapoor

Markets and investors have cheered the Budget, which has a bit for almost everyone. "More importantly, the aam aadmi has a bit more to cheer about - revision of tax deduction limit to Rs 2.5 lakh from Rs 2 lakh, raising the limit of 80C exemption to Rs 1.5 lakh from Rs 1 lakh, increased housing loan interest exemption (on self-occupied properties) from Rs 1.5 lakh to Rs 2 lakh and a higher ceiling in public provident fund to Rs 1.5 lakh from Rs 1 lakh.Government has taken bold steps to encourage household savings by reducing tax arbitrage between mutual funds and bank fixed deposits, allowing for greater mobilisation of savings to the more productive economy. Clarity on tax implication of real estate investment trusts and establishment of infrastructure-based investment trusts will also allow investors to leverage the real estate and infrastructure opportunity.Fiscal prudence, liberalisation and transparency have been the key themes of the Budget. By attempting to restrict fiscal defic

Budget has a bit for everyone: Vishal Kapoor

Business Standard

Firdose Vandrevala

While waiting for the finance minister (FM) to start his Budget speech, I kept reminding myself not to expect too much. My only expectation was it should not be a kacha (please-all) budget. It is not supposed to be a single pill for all our problems.The Budget addressed all sectors, sections and regions. Like the thali  (platter), no one item dominated and different tastes were there.The six most satisfying parts are: One, the thrust on creating smart cities. The developed world has an urbanisation of more than 50 per cent, China is at 50 per cent and India at 33 per cent. Gross domestic product growth is closely related to urbanisation, so smart cities would sustain India's growth. Two, the financial inclusion of all households in the banking system. Three, the focus on developing infrastructure. Four, linking the Mahatma Gandhi National Rural Employment Gurantee Scheme to asset-creation. Five, the focus on rural areas, Jammu & Kashmir and the Northeast. Six, not forgetting our ar

The focus on smart cities was satisfying: Firdose Vandrevala

Anant Goenka

This Budget ticks almost all boxes. However, it lacks a definite wow factor.It provides impetus to manufacturing, growth in infrastructure, clarity on the goods and services tax, tax structures and raised foreign direct investment caps in the insurance and defence sectors. It is a forward-thinking Budget emphasising digitisation, venture capital, growth of entrepreneurs, innovation centres and alignment with international accounting standards.The fiscal deficit targets, if achieved, look promising. While the finance minister did look at resolving the inverted duty structure for many products, there was nothing for rubber, important for the tyre sector. I hope we are able to resolve this. A sum of Rs 37,000 crore has been allocated towards the construction of roads and a Rs 50,000-crore corpus has been set aside for a long-term rural credit fund, some of which can be used for farm implements such as tractors. In the long term, moves like these will be beneficial for the automobile and a

Fiscal gap targets, if achieved, look promising: Anant Goenka

Baba N Kalyani

We had moderate expectations from this Budget and I am happy that these have largely been met. From a macroeconomic perspective, the Budget emphasises the need for fiscal prudence, which clearly is the need of the hour. What is particularly noteworthy is the emphasis on the manufacturing and infrastructure sectors as the key levers to revive economic growth.This is perhaps one of the few times that the manufacturing sector has received special attention. The government's commitment for early introduction of GST and a new DTC are positive signals. The proposed overhaul of the subsidy regime to make food and fuel subsidies better targeted is also encouraging.From a policy perspective, the decision to raise FDI in the defence sector from 26 per cent to 49 per cent through the FIPB route with management control in Indian hands will provide a boost to domestic manufacturing industry. The Finance Minister's statement of wanting to reduce reliance on imports coupled with his intent to streaml

A pragmatic, growth-oriented approach: Baba N Kalyani

Murtaza Khorakiwala

The Union Budget 2014, presented by a government barely six weeks in office, is well-balanced. It addresses the issue of enhancing economic growth to 7-8 per cent over the next few years through a slew of measures.The focus on infrastructural development across transportation, education and healthcare is noteworthy as this will go a long way in nation-building.The health-related infrastructure development initiatives are moves in the right direction for creating a healthy nation. The impetus provided to drug-testing, the setting aside of Rs 500 crores for establishing four new AIIMS (All India Institute of Medical Sciences), 12 government medical colleges with dental facilities and 15 Model Rural Health Research centres are all steps in the right direction. While the government has provided some relief via removal of service tax on disposal of bio-medical waste, such an exemption has not been provided for clinical trials, which is much needed to boost the activity. Health expenditure,

Govt's health care contribution to increase with new steps: Murtaza Khorakiwala

T S Kalyanaraman

The three-pronged focus of the finance minister (FM) - a renewed thrust on infrastructure development, rationalisation and overhauling of the taxation regime and the development of the rural economy - is expected to guide the Indian economy towards its true potential. The FM has attempted to improve the business climate for both domestic and international investors by bringing in new measures.Increase in foreign direct investment for key sectors will help create an immediate sense of comfort and employment in the long-term. The energy and resources devoted to the rural economy - to improve infrastructure, employment opportunities and its income-earning potential - would immensely benefit sector-specific retailers like us. Rural incomes have always played a role in sustaining retail businesses.I understand the FM had to study all the sectors in a very limited time. I am sure that as he continues to look into various issues, he will look at the jewellery sector and help us join the India

A road map for revival of the Indian economy: T S Kalyanaraman

Subhashis Gangopadhyay

There are two things that can be safely said about Finance Minister Arun Jaitley. He is brave and he measures allocations in units of Rs 100 crore. The bravado is obvious because in spite of levelling the charge of "fudging the figures" that he laid on his predecessor (P Chidambaram), when it came to the estimated fiscal deficit for this year, he has stuck to the old figure. Also, almost every good idea has been monetised at Rs 100 crore. This, by the way, includes a Rs 100-crore bill for writing a report on the linking of rivers.The one thing that he kept hidden in his Budget speech is the government's focus on job creation. The tax cuts and their rationalisation should boost manufacturing but the FM didn't discuss its impact on job-creation. The boost to infrastructure, health, tourism and the talk about supporting start-ups are also important ways to generate jobs. This is of special significance when the economy is gearing for a drought-like situation and pressures on food inflatio

Speech failed to reflect job creation focus: Subhashis Gangopadhyay

Prasoon Joshi

What is the most striking feature of the Budget?This is a growth-oriented Budget. It is a statement of intent that has realistically touched upon many important sectors.The thrust on infrastructure, agriculture and manufacturing and rationalisation of duties on input costs is welcome.It reflects that the government has a credible economic and social vision.What could have been better?There will always be more to ask for in terms of income tax and requirements for specific industries. But we need to see if we are moving progressively in the direction of economic revival.Prasoon Joshi, lyricist, CEO & chairman, McCannIndia and South Asia

My Budget: Prasoon Joshi

Sonal Mansingh

What is the most striking feature of the Budget?The proposal to enhance connectivity between rural areas and cities as a part of the National Rural Internet and Technology Mission is a good one. Also, the announcement to set up new IITs and IIMs will help improve quality of education in India.What could have been better?The decision to not allocate funds for the promotion of cultural activities is disheartening. Also, all rivers should be brought under the umbrella of the Ganga Conservation Plan.Sonal Mansingh, Dancer

My Budget: Sonal Mansingh

Gul Panag

What is the most striking feature of the Budget?The striking thing is that it is not much different from the UPA Budget. On another note, I am happy to see the commitment to the 'One Rank One Pension' scheme for the armed forces, even though the funds allocated do not appear adequate at this stage.What could have been better?I was expecting path-breaking steps to bring down inflation. This is sadly missing. No concrete plans either to bring about universal and equitable access to education and health care.Gul Panag, Actor and politician

My Budget: Gul Panag

J J Valaya

What is the most striking feature of the Budget?The Budget focuses on revival of growth, is holistic and remains friendly to farmers, youth, women and senior citizens. Some of the key features include encouragement to exports of readymade garments, setting up of new textile mega clusters and a trade facilitation centre and a crafts museum.What could have been better?Some important steps that need to be taken include expansion of the insurance sector and improving our image as an investment-friendly nation. Clearly, progress, in this case, will be derived through good economics.J J Valaya, Fashion designer

My Budget: J J Valaya

This year's Economic Survey is an assessment by the National Democratic Alliance on the policies of the United Progressive Alliance. It speaks well of the professionalism of the economic division that the assessment is balanced and fair-minded. It seeks credit for the sharp decline in the current account deficit and, perhaps with less justification, for the fall in the budget deficit. It correctly draws attention to the sharp decline in private investment as the key issue that needs to be addressed to revive growth. Here it does not overpromise and sees seven-eight per cent growth returning only after the next financial year, if all goes well.One message that comes across loud and clear is the need for fiscal consolidation. The survey speaks of the need for a new Fiscal Responsibility Act with stronger accountability and penalty mechanisms. In the same vein, it talks of the need for containing subsidies and moving from price subsidies to income support. These are valuable suggestions a

A balanced Survey: Nitin Desai

There was no Economic Survey accompanying the interim Budget in February. So, this is the first official glimpse into how the economy fared last year. This Survey confirms what we already know - the economy has been slowing for four consecutive years, and has clocked sub-5 per cent growth for two years. Growth in manufacturing has been nearly zero during FY13 and FY14. This is a bit puzzling as the investment rate has been about 30 per cent of GDP (admittedly below its 2008 peak of 38 per cent). The Survey says structural factors, including slow decision-making, ill-targeted subsidies cramping space for fiscal expansion, and high food inflation, caused investments to be unproductive.The first two factors were highlighted in the annual report of RBI last year, which also explained why the capital output ratio had deteriorated. The Survey blames intermediaries for high food inflation, making the case for dismantling of the APMC. The second chapter of the Survey is usually the most awaite

Survey squarely pro-reform: Ajit Ranade

Real fiscal consolidation and a cutback on subsidies are possibly the two most critical issues the markets will watch out for in finance minister Arun Jaitley's maiden budget speech. But the truth is that the government has little control over its own finances. In order to slay a dragon called fiscal deficit, the government either needs to augment its revenues or cut back on expenditure. Economists believe the FM does not any headroom left to either cut expenditure or cut subsidies. Be prepared for a disappointing budget. To begin with, the finance minister Arun Jaitley will not be able to cut back expenditure as his predecessor P Chidambaram did to bring down the fiscal deficit from 5.7 per cent in FY12 to 4.5 per cent in FY14 because very little of the expenditure is discretionary. A breakdown of the government's Rs 15.9 lakh crore expenditure shows that 24 per cent of this is spent on interest payments, 16 per cent on subsidies, 13 per cent on salaries, 13 per cent on defence and 14

Don't expect fireworks from FM on fiscal deficit

Some facts about its provisions and explanations about how it works

FAQ on the Essential Commodities Act

Rigid labour laws have had serious implications for industry, which now hopes that Rajasthan's initial steps for change will be replicated in other statesIn the Budget session of the Rajasthan Assembly starting next week, the Vasundhara Raje-led government in Rajasthan will table amendments to certain labour-related Acts. If passed by the House and approved by the President, employers in Rajasthan will have the right to retrench up to 300 workers without seeking the permission of the government, up from 100 currently. There will also be a three-year limit within which to raise disputes, the percentage of workers needed to register a union will be increased from 15 per cent to 30 per cent and the provisions of the Contract Labour Act will be applicable only to companies with more than 50 workers, as opposed to 20 at present.Simultaneously, the Union government has also proposed changes to four labour-related laws - Minimum Wages Act, Child Labour (Prohibition & Regulation) Act, Fact

Labouring for flexibility

Food inflation has been the bugbear of the Indian economy over the past few years. If the monsoon disappoints, it might only intensify

StatsGuru: The numbers behind food inflation

Arvind Subramanian, senior fellow, Peterson Institute for International Economics, analyses the government's track record for the past five weeks

A provisional scorecard for recent Modi govt measures

Jaitley did the bulk of the spadework for a separate legislation on SEZs. Kamal Nath built on it to get the SEZ Act through in 2005

One's expectations from Jaitley tenure

When criticism mounted about projects coming to a standstill last year, the Manmohan Singh government sacked one of its Cabinet ministers. The buzz was that the minister had been sitting on clearances and refusing to approve the projects. A few days before the minister was divested of charge, a senior bureaucrat, driven to the wall on the issues that the minister was reluctant to address, sought an audience with a person close to the prime minister. "I did not have direct access to the prime minister. I had to have my message conveyed to him through someone else. It was just a matter of days before the minister was shown the door," says the official. Such is the power of the senior bureaucracy when allowed access to the top man in the government.But in its last few years in office, the United Progressive Alliance (UPA) government did not accord its bureaucrats such power. There was an air of despondency in the ranks when even retired officials were pulled up for decisions taken by the

A bureaucracy to match Modi's ambitions

The recently concluded Uttar Pradesh investor conclave managed to attract proposals worth Rs 35,000 crore. For a state struggling to attract capital, the figure looks impressive. However, compared to similarly placed states' success in inviting investment proposals, the conclave, the first of its kind by Uttar Pradesh, was far from spectacular.Madhya Pradesh held two such conclaves in 2008 and managed to get proposals worth Rs 30,698 crore in one and Rs 88,018 crore in the other. At its 2010 investor summit, the Madhya Pradesh government signed 107 memoranda of understanding for Rs 2,44,851 crore.Uttar Pradesh's record in attracting capital is shocking. Its share in investment proposals was six per cent of the total in the country from 1991 to 2010. And, most of the proposals for Uttar Pradesh remained on paper.The Institute of Applied Manpower Research (IAMR) reckons only three per cent of enterprises located in Uttar Pradesh are willing to invest more in the state. The institute surv

Investors steer clear of India's biggest market

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