Business Today spoke to Shankar Narayanan, Managing Director, Carlyle Asia Growth Partners, The Carlyle Group on his expectations from the Union Budget likely to be held on July 10.
1. Clarity on tax and regulatory regime: Entrepreneurs, business houses and investors prefer to know the rules of the game before they decide to invest their time, money and effort in the country. The tax and regulatory regime should be as unambiguous and detailed as possible so as to reduce risks of misinterpretation. At the same time, it is imperative to send out a message that tax policy will be fair, consistent and non-discriminatory. India has to compete for, and attract, capital, but ambiguity places us at a disadvantage. Every dollar invested creates jobs and helps in additional tax revenue.
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2. Focus on infrastructure: We have seen the benefits of the investments in roads and highways initiated through the GQ project. Continued investment in infrastructure, whether roads, ports, power, telecom, broadband, etc., will not only provide the foundation for decades of sustained economic growth, it will also improve the conditions of the poorer sections by offering them increased employment opportunities and better access to markets. Moreover, the inflationary pressures in the economy will be lowered by reducing the supply side constraints.
3. Encourage innovation and creativity: We believe that India has the talent and the ability to be at the forefront of innovation in areas such as technology, agriculture, health-care, financial inclusion and so on. The government should help create a platform where entrepreneurs can access the required seed capital; and an ecosystem where innovation and creativity can be encouraged. The IITs should work with entrepreneurs to create such an ecosystem that facilitates entrepreneurship.
As told to Sarika Malhotra