FORIEGNERS HAIL INDIAN BUDGET

The maiden Budget of the Modi Government has been hailed by American experts and corporate sector here as a step in the right direction to generate employment and foster growth.
They said Union Finance Minister Arun Jaitley has opened the door to a much wider level of US involvement in India's development plans in the coming years. "Balanced, measured, and thoughtful: a terrific first budget for the Modi government. "American investors are now revitalised by the positive changes taking shape in India," said long-time India watcher Ron Somers of the recently formed India First Group. Hailing the decision to increase the FDI caps in both insurance and defence sectors from 26 percent to 49 percent, Somers said though the opening of the latter will eventually be needed to truly facilitate greater transfer of technology - but this sends a very positive signal, especially combined with India's announcement to increase Defence spending. "Now, if only we can genuinely deepen Indo-US collaboration in the Defence Sector, with India looking to the United States for new artillery and helicopters, transport aircraft, guided missile technology, and speciality radar to beef-up India's homeland security capability - from companies like BAE Systems, Boeing, UTC, Raytheon, and Lockheed, all working closely to establish domestic manufacturing capacity with India's vital private sector and capable DPSUs," Somers said.
Rick Rossow from the Center for Strategic and International Studies (CSIS) wished the government had seized the moment to take more robust steps by allowing greater than 49 percent FDI in defence manufacturing, and by repealing the retrospective applicability of the 2012 amendments to the Income Tax Act. "But there were a few very nice surprises.  Most notably, the relaxation of conditions necessary for foreign investment in construction. "To me, this may open the door to a much wider level of American involvement in India's development plans in the coming years," Rossow said. "In studying the details of the various proposed changes in the Budget, a strong narrative emerges- a long pattern of range of changes that should play a small part in helping to stimulate manufacturing, such as cutting the costs for some types of capital equipment and intermediate goods," he said. 

 

NRI's HAIL IT AS PRAGMATIC

Leading NRI entrepreneurs have hailed India's budget as "progressive, pragmatic and sensible" while suggesting that overseas Indians be treated on equal terms with resident Indians for investments. The Hinduja brothers, who top Britain's rich list, said in a statement that Finance Minister Arun Jaitley's budget had set the direction for a "very positive long-term agenda". The budget attempts to balance a broad stimulus and capability building agenda while meeting fiscal and deficit targets, the Hinduja Group Chairman S P Hinduja and Co- Chairman G P Hinduja said. They said that overseas Indians had always been strongly supportive of India and deserve to be treated on equal terms with resident Indians for investments made into the country especially in defence and insurance sectors where the management control still rests with Indian resident entities or persons. Lord Swraj Paul, Chairman of Caparo Group welcomed the budget as "pragmatic and sensible" and said it would send a positive signal to foreign investors. 

CITY OF LONDON WELCOME INDIAN BUDGET

The City of London Corporation has welcomed the maiden budget of the new Indian government, saying that it sends a positive message for international stakeholders for investment in India. Reacting to the budget, Mark Boleat, Policy Chairman at the City of London Corporation said, "This is a practical and encouraging budget that translates the Prime Minister's campaign hopes into tangible economic reform". "We warmly welcome the news that the government intends to increase the cap on FDI in the insurance market to 49 per cent is a concrete step towards a more dynamic investment market that sends a positive message to international stakeholders who have been frustrated by a lack of progress", Boleat said. "The wide range of practical measures pinpointed by the Finance Minister will go a long way to transforming India's financial markets, if they are successfully implemented", he said. "This will bring benefits to domestic market stakeholders and will be welcomed by the international community, including the City of London, which has long since been convinced of India's potential and wants to see real progress", he added. "Chancellor George Osborne's visit earlier this week highlighted the key relationship that the UK financial services sector has with the Indian economy and I hope that this budget will bring this potential closer to reality, as the UK and India work more closely together for the mutual benefit of both countries.", he said.