The High Commission of India in the UK in partnership with FICCI and IPF organised an Interactive Session on “Budget & I” at the India House. The session included deliberation on impact of the budget on the economy, industries, investors, direct and indirect taxes etc. The “I” represented India, Industry, Investor and the Individual; hence the session was titled “Budget & I”.
In her opening remarks, H E Mrs. Ruchi Ghanashyam, High Commissioner to UK said that through the interim budget the Finance Minister made an effort to balance the short- to medium-term objectives of the economy with a long-term vision for 2030. The ten critical dimensions laid out in the budget are the foundation of our future growth and development and will help India achieve its target of becoming a US$10 trillion economy by 2030.
Referring to the FM’s speech she said that India has received massive foreign direct investment worth $239 billion in the last five years on account of a stable and predictable regulatory regime, growing economy and strong fundamentals. She further added that she was confident that UK investors and businesses will be encouraged to invest more in coming years with the growth of the Indian economy.
This was followed by a panel discussion on the nuances of the budget chaired by Lord Jitesh Gadhia. The distinguished Panel included Mr. Devin Narang, NEC Member, FICCI & MD, Sindicantum Renewable Energy; Mr. Ajay Sethi, Managing Partner, ASA & Associates and Dr. Anil Lamba, Chartered Accountant and Financial Literacy Activist.
Setting the tone for the Panel Lord Gadhia echoed economist Martin Wolf’s thoughts on India’s growing importance in world economics. He said that there is a cause for modest optimism about the prospects of the world’s fastest-growing large economy.
Mr. Narang reacting to the budget shared that the various announcements in the budget would improve demand in the economy and support investments going ahead. He further said that he sees a positive momentum building for the housing and real estate sector which has major forward and backward linkages. All of these are positive for growth, will have a multiplier impact and improve the outlook for the economy in the coming years
Speaking at the Panel Mr. Sethi said that the challenge which presently sits before the Government is to give more teeth to IBC and real estate law, as also simplify GST. Exports need bigger thrust to balance the import bill. Credit offtake from banks should be as much worry as recovering NPAs. Certainly, privatising banks and some other business should be priority.
Dr. Lamba while sharing his view on the budget said that the no change in the tax brackets is fundamentally correct, however, the proposals related to direct tax now offer a full tax rebate to individuals having an annual taxable income of up to Rs 5 lakh (approx £500,000). This would be extremely beneficial for the lower middle-class taxpayers comprising self-employed, small businesses, small traders, salary earners, pensioners and senior citizens.
Dr. Mohan Kaul, President of Indian Professionals Forum (IPF) suggested that Indian Government should include tax benefit for investors in Startups as an incentive in the budget as is the case in UK. It was agreed that this suggestion will be conveyed to the Indian Finance Minister through the Indian High Commission.
