In 2015/16, India has shown a robust and steady growth of economy at 7.6 per cent despite unfavourable slowing global economy.
- The government has continued its focus in the budget 2016/17 on economic reforms, policy initiatives, priority areas of farm and rural sector, social sector, infrastructure sector, education, employment generation and recapitalisation of the banks.
- Financial sector reforms are introduced by new monetary policy framework, financial data management centre order to be set up and recapitalisation of public sector bank, listing of general insurance companies owned by the government.
- Reduced corporate tax rate to 25 per cent would encourage corporates to set up new plants for boosting manufacturing in India. This is a right step to facilitate India's target of becoming manufacturing hub.
- Government has taken notable measures to provide certainty in taxation regime, simplification and rationalisation of taxes, reduce tax litigation, such as new dispute resolution scheme.
- Budget has also provided some new positive measures such as deferring POEM for one more year, help start-up companies by giving them tax deduction on their profits for three years, relief to MSME sector.
- Overall - Structurally the budget is Forward Looking however the key will be its implementation.
Sanjeev Agarwal, Managing Director, Protiviti.