The annual Indian budget presented by the country’s Finance Minister Arun Jaitley was not the much promised ‘game-changing’ document that the market and traders were hoping for. Instead it could be best described as a balanced presentation, with its full implications being felt over the long term. The markets had high hopes and were preparing for a windfall but as segments of the budget were being released, the sentiments were not very positive. Analysts, however, have prescribed that there would be a correction once the entire picture is drawn.
Levies on corporation tax, abolishment of wealth tax, except for the super-rich, more leaning towards infrastructure spending, a clampdown on black money (offenders will be given a window of six months for voluntary disclosure) and opening the door for foreign direct investment (FDI) were seen as good news but the market’s reaction was mixed. The finance minister is paying more attention to sectors of job creation through economic development, entrepreneurship and giving a boost to local manufacturing — given that two-thirds of Indians are below the age of 35. The country’s middle class, India’s growth engine, has been left to fend for itself while attention is being focused towards the upliftment of the poor. In conclusion, it would be prudent to believe that with this budget, the Indian economy has got its engines running for a taxi down the highway, thereafter preparing for take-off and a growth phase of approximately 8 per cent in 2015-2016, helped by declining oil prices and a falling inflation rate.
