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Budget consistent with government's stated priorities and philosophy: Arvind Singhal

In my view, the Budget is directionally consistent with the current government's stated priorities and philosophy. The nine pillars of growth as articulated in the Budget speech today reinforce these priorities, and budgetary allocations reflect the same too.

Arvind Singhal        Last Updated: March 1, 2016  | 09:57 IST
Arvind Singhal, Chairman, Technopak Advisors

In my view, the Budget is directionally consistent with the current government's stated priorities and philosophy. The nine pillars of growth as articulated in the Budget speech today reinforce these priorities, and budgetary allocations reflect the same too.

While the Budget may disappoint those who were expecting so called "big-bang" reforms (I have yet to come across a single document that defines what such reforms be, and if they are feasible to implement keeping both fiscal and political constraints in mind), I believe that India is trying hard to very seriously correct various structural deficits that have been building up for decades.

In the next 12 months, the higher public spending as articulated in the Budget proposals should provide higher capacity utilisation of several core industries such as cement & steel, higher orders for a wide range of capital goods makers, and potentially an increase in rural spending (hopefully further boosted by a normal monsoon this year after two successive failures).

FDI in food production & marketing, if interpreted as FDI in food retailing too, is one of the more exciting announcements in this budget. Coupled with the planned national e-market platform for farm goods (for states that have repealed APMC Act), this can significantly benefit both the farmers and the consumers.

Finally, increased focus on skilling of population, with higher budgetary outlay, can create more employment and thereby further increase consumer spending in general.

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