View: Making sure investors feel safe putting resources here (2024)

The Economic Survey rightly focused on the importance of wealth creation in an economy. Wealth creation is a consequence of increased investments, lesser market distortions and ease of access to financial and physical resources. Increased wealth further leads to greater prosperity for citizens and increased financial resources for the government. Towards that idea and objective, this Budget is a strong step. We know that investments are key to the kind of growth that we require to reach the $5 trillion target for the economy. The government came out with measures to boost investment and credit in the economy, most important of which was the National Infrastructure Plan of Rs 102 lakh crore.

Boosting investor sentiment is something the government has been focusing on. The budget is one more step towards that. We are gradually moving towards a lower and simplified tax regime for corporates and individuals. Providing tax relief will increase much-needed consumption and investing power. Providing for a taxpayers’ charter is a welcome move and will increase much needed trust in the economy. The measure to de-criminalise civil offences would augur well for investors and corporates.

More importantly, there has been increased focus on collaborating with the private sector through PPP (public private partnership) to boost investments. Providing viability gap funding through PPP for a medical college for every district hospital will bring massive transformation in the health infrastructure.

One of the key concerns is the sentiment among global investors. For our infrastructure needs, it is very important that we encourage foreign capital and expertise. It is very encouraging that the government has provided for 100% tax benefits on the investment income of foreign investors and sovereign wealth funds. This government has also been keen on revamping railways.
MSMEs (micro, small and medium enterprises) are major contributors to the economy and employment. The Budget has provided major financing relief. NBFC finance to MSMEs has now been facilitated through the TReDs platform.

Boost to entrepreneurship holds immense importance for the youth. India has been emerging as a major startup ecosystem globally and to boost the sector, the Budget has provided tax relief on ESOPs in startups. There has also been an increase in the revenue exemption for startups to avail tax holiday, and the budget has also given tax relief to cooperative societies which makes the budget inclusive in nature. It is a strong move to increase the revenue limit for small businesses to get their financials audited.

It is a strong move to increase revenue limit for small businesses to get their financials audited

I am confident the move to float the IPO of LIC will also reap massive benefits for the economy through efficiency gains. PSUs have long been the face of inefficient functioning and public loss, but this government has made a bold move to enhance the target for disinvestment and ensure that PSUs are also professionally managed.

The budget is exemplary in terms of providing financing relief to NBFCs, real estate, infrastructure and MSMEs and also provides for development of the underserved sections of the population.

It is now needless to emphasise that we need to focus on data and sunrise sectors. In this Budget, there has been increased focus on encouraging innovations in technology and it is very heartening to see increased allocation for quantum computing and data centre parks. Further, India has immense potential for tourism – currently we only attract 1.2% of all the foreign tourist arrivals in the world. The government has provided for developing five iconic sites along with museums to increase tourist footfall in the hitherto unexplored destinations.

This Budget also removes structural bottlenecks, which were otherwise hampering investments. Private investment has been key to sustained growth for all the major economies in the world and this Budget is a welcome move to make sure investors feel safe while putting their resources in India.

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