There is nothing ground breaking, but there is nothing negative either. There is nothing that’s bad about this budget. That’s the reason why the markets saw a huge rally post the budget proposals were unveiled. There consistency on the affordable housing which is a key positive.
On the taxation front, I don’t see any big increase in anyone’s pay packet. On the contrary, those earning above Rs 50 lakh will pay an additional 10% surcharge. In a nutshell, the Budget Speech 2017 proposals have been a continuation of the policies that the government has followed over the years – i.e. spend on infrastructure and housing.
The abolition of Foreign Investment Promotion Board (FIPB) is a welcome step and this signals that India is more open to the outside world. The transparency is political funding is another welcome move. As far as I am concerned, there are no negatives in the budget proposals.
Clarification on offshore taxation proposals is a welcome step and the foreign investors are likely to see this as positive development. Most FIIs, in my view, will see the proposals as a continuation of the existing policies of the government – and that is a positive. The markets and investors are enjoying that there are no negatives in this budget.