With upscaling infrastructure investments to Rs 100 lakh crore over the next five years and measures to rejuvenate the rural and urban economy, the Union Budget for 2019-20 sets a clear action plan for making India a five trillion dollar economy by 2025, according to leading industry chambers.
"Directionally the budget is good and it takes forward the plan that was laid out by the government during the interim Budget. There are several positives in the budget, and it provides a set of benefits for most segments of the society," said FICCI President Sandip Somany.
"We see a clear action plan for realising the vision of making India a five trillion dollar economy over the next few years with a focus on ease of living," he said appreciating the Budget's focus on infrastructure development. "We are also encouraged by the focus on promoting public-private partnership for modernisation and upgradation of the nation's railway infrastructure."
Somany said the announcement to further provide Rs 70,000 crore for capital infusion into public sector banks along with measures to strengthen the governance processes within the banks should help in improving the credit flow to the industry.
CII President Vikram Kirloskar said the adherence to fiscal consolidation path while providing the necessary boost to consumption, investment and special emphasis on agriculture and rural sector are steps in the right direction to take the economy to five trillion dollar mark.
"The measures are expected to debottleneck the economy and create a healthy eco-system for revival of business sentiment. The Budget did well to bring all companies having turnover upto Rs 400 crore under the 25 per cent corporate tax rate ambit from the erstwhile limit of Rs 250 crore. This is a good beginning and as it is expected to provide a fillip to the corporate sector earnings which could be ploughed back in investments," he said.
Kirloskar said measures like strengthening of logistics infrastructure and stepping up efforts in rural housing are likely to provide a significant impetus to investment spending and consumption in the economy. Apart from boosting growth in the near to medium term, they will also help generate jobs in the economy.
ASSOCHAM President B K Goenka said Finance Minister Nirmala Sitharaman's maiden budget is a mega investment-oriented initiative with a strong focus on scaling up rural infrastructure and demand along with slew of tax simplification measures.
"The disinvestment target of Rs 1.05 lakh crore along with the commitment to disinvest Air India will be good efforts to enhance the fiscal stability with fiscal deficit being pegged lower at 3.7 per cent of GDP," he said adding that initiatives like e-assessment, inter-changeability of PAN and Aadhaar, digital payment will make a big difference to tax payers.
The next phases of affordable housing, national highway projects should also be growth drivers, said Goenka. "The focus on Make in India is visible as also emphasis on sustainable development by measures like electric vehicles and renewable energy. Boost to high-technology manufacturing like semi-conductor and commercialisation of space technologies are innovative measures.