He added, "The focus on building agri infrastructure like warehouses too augurs well for the economy while a strict fiscal discipline is sought to be maintained as is evident by the commitment to bring down fiscal deficit from 4.5 per cent to 4.1 per cent of the GDP."
Industry body CII also complimented Finance Minister on a pragmatic and extensive Budget that lays out a medium term vision for the economy and meets industry expectations on growth and employment creation. CII said that in its first Budget, the new Government has activated a number of directional changes that would stabilise the economy, boost investments, and encourage savings with a view to reviving GDP growth to 7%-8% in the near term.
"A roadmap for fiscal consolidation and fiscal prudence has been defined to bring fiscal deficit to 3% by 2016-17, with stress on reviving all sectors of the economy including agriculture, power and infrastructure, manufacturing, and services. Tax stability and rationalization is addressed widely, according high importance to restoring investor confidence and boosting sentiments," said Chandrajit Banerjee, DG, CII.
CII expressed its happiness that the encouragement to manufacturing through various measures such as opening defense, insurance, and e-commerce sectors to FDI, correcting inverted duty structures, setting up of industrial clusters and promoting entrepreneurship.
MD & CEO of PNB MetLife Tarun Chugh has welcome the budget. He said, "Increase in foreign direct investment (FDI) in the insurance sector has been a topic of discussion for a long time, and while we await the full details of the proposal, we are encouraged by today's announcement. The 49% composite increase should be positive and will help the industry; we estimate that the sector stands to gain additional 7,800 crores as FDI (approx)."
He added, "We are also encouraged by the increase in the limit of Section 80C to 1.5 Lakh. While we would have looked forward to a separate limit for Life Insurance, we are sure this will help the retail customers who will benefit from the enhanced tax benefit on savings products including Life Insurance."