India Inc hails budget as growth oriented, says economy will become more transparent

India Inc on Wednesday hailed the Modi Government’s third Budget as growth-oriented and said the proposals will make the economy more competitive and transparent.

Describing the Budget proposals to clean up political funding by massively reducing the cash donations at Rs 2,000 from Rs 20,000 and abolition of the FIPB as “big signals” of a change in the Government mindset, Mahindra Group Chairman Anand Mahindra said these steps illustrate a determination to shed legacy and step firmly into the future.

“These steps are big signals about the Government mindset. They show its determination to shed the skin of legacy and step firmly into the future,” Mahindra said.

Gopichand Hinduja of the Hinduja Group, said “The Budget is aimed at making the economy more competitive and transparent with its emphases on higher investment in physical and social infrastructure as well as in digital connectivity.  This will lead to more job creation and income to households as well as increase in productive capacity and consumption.”

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He said these steps can take the economy to an 8-10 per cent growth trajectory, even though note ban and the headwinds of protectionism in the developed world will be a challenge.

AC-maker Blue Star’s B Thiagarajan said the Budget will give a boost to rural sector. “It very important for corporate, if they want to grow, to focus on rural and farm sectors. It is important for companies to look at how they are going to participate in this growing middle class.”

Marico’s Saugata Gupta said he expects the Budget to boost consumption, create more jobs. “The impetus given to digitisation coupled with the implementation of GST, will lead to higher compliance and will help organised players in the sector. This Budget is likely to provide the much required stimulus for reigniting the consumption growth after a slump caused by demonetisation,” Gupta said.

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Hiranandani Group’s Niranjan Hiranandani welcomed the sops for affordable housing sector, saying, “The Government has provided infrastructure status to the affordable housing finally. We have been demanding this for the past 25 years.  The move will help investments in form of long-term funding to the sector.”

“I personally believe that Government should declare all such housing units, whether in metros or in any other part of the country with 60 sq metre as carpet area across the country,” he said.

Emami’s Harsha Vardhan Agarwal said the Budget focus on infrastructure and rural sector, which are the backbone of the social economy, provides major impetus to the industry in the long term.

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