Welcoming the Budget announcements, Sumit Mazumder, president, Confederation of Indian Industry (CII) stated, “Budget 2016-17 is well-balanced and comprehensively addresses all aspects that industry was looking for, including revitalising the rural economy, infrastructure build-up, relief for stressed assets, and simplification of taxes.”
The CII president especially lauded the Government for adhering to the fiscal consolidation roadmap for this year as well as 2016-17.
Mazumder commended the macroeconomic priorities and structural reforms laid out in the Budget. “We believe that the focus on macroeconomic stability, boosting domestic demand and continued economic reforms would further cement India’s position as a haven of growth in a fragile global economy.”
The nine pillars of the Budget are well-strategized with emphasis on agriculture and doubling farmer incomes, healthcare, education, infrastructure and investments, and so on. Innovative schemes have been rolled out in all the nine areas, he said.
“We particularly welcome the different ways adopted by the Finance Minister to drive employment generation,” added the CII President. low-cost housing will be a huge demand multiplier, and CII welcomes the many initiatives on this.
CII also welcomes the measures to revive infrastructure investment such as the new credit rating system and the commitment to issue guidelines for renegotiation of PPP, Mazumder said.
The allocations for agriculture and the rural economy are particularly noteworthy, given that two successive drought years have subdued rural demand.
CII had suggested that schemes such as Pradhan Mantri Krishi Sinchai Yojanaand Pradhan Mantri Gram Sadak Yojana be allocated higher funds, which was mentioned in the Budget, he said.
The added expenditure on governance at the Gram Panchayat level would help convert these funds into substantial outcomes, while introduction of FDI into marketing of food products would increase investments in farming, the CII President said.