ISO 9001:2008 Certified
closex Call Us 11-23320714, 23721504,

 Upcoming Event
to forge a partnership on Technology Commercialization Initiative, FICCI-AMITY and IC2 Institute University

Union Budget's agriculture focus will boost growth prospects 

Feb 01, 2018

Finance Minister Arun Jaitley has done well by announcing measures to help MSMEs and

job creation in the last full Budget of the current government


NEW DELHI, February 2018The impetus to the rural economy and the overall agriculture sector in the Union Budget presented by finance minister Arun Jaitley in the Lok Sabha today would be a force multiplier for overall growth in the coming years. 


The Budget is very much in line with the expectations of FICCI. According to FICCI President Mr. Rashesh Shah, "It will drive consumption in a big way, thus helping growth in other related sectors". 


Additionally, the attention to the MSMEs through better access to finance or lowering of the corporate tax rate would also help spur both employment and growth in this vital segment of the economy.


FICCI also believes that the stress on jobs in the Budget will help generate meaningful employment going ahead.


Another path-breaking announcement in the budget relates to the new National Health Protection Scheme under which an annual health insurance cover of Rs 5 lakh will be provided to nearly one third of the households.


This is the world's largest government funded healthcare programme and would lead to a clear increase in demand for quality healthcare facilities and services and to match this rise in demand, several measures have also been announced to improve supply of quality health services in the country.


"While we see a clear focus on the infrastructure sector development in the rural areas, the plans for such development in the urban areas including wider connectivity across the length and breadth of the country have also got the needed attention in the budget," according to Mr. Shah.


Given the kind of structural reforms the government has undertaken in the last year and the need to give a fillip to demand in the economy particularly through infrastructure development and strengthening of the rural economy, FICCI is fully supportive of the new glide path.


However, given the performance on the disinvestment front this year, there were hopes that the government would be more ambitious in terms of setting the target for the next year - the Rs. 80,000 crore target for disinvestment receipts in FY19 is a bit conservative in FICCI's view.


The continuation of STT even while re-introducing LTCG will put some additional burden on the market participants. This, however, should not impact markets in the long-term. With the markets giving a compounded return of 15-16% over the last 20 years, a tax impacting 1.5% return should not affect the domestic investor appetite for equity investment.


Finally, while consolidation process for the public-sector insurance companies has been indicated, FICCI hopes that a similar plan for the banking sector as was widely anticipated ahead of the budget will also be announced soon.





Also Read

Budget 2018-19 puts a premium on honest investment: Piyush Goyal

FICCI lauds government on insightful Economic Survey

We're no ostriches; Centre ready for mid-course corrections: Goyal     

Budget 2018-19 puts a premium on honest investment: Piyush Goyal     

Indian economy to grow over 7.5 pc next fiscal: Goyal     

'Ayushman Bharat' insurance scheme ambitious, not impossible: Goyal     

India's Union Budget 2018-2019     

FY19 revenue loss estimated at 7K crore: Corporate tax on SMEs with up to 250 crore turnover cut to 25%     

Budget 2018: Achhe Din are here for MSME sectors     

Farmers get their due: MSP hiked to 150% of cost     

Corporate tax cut to boost Make in India     

FY19 revenue loss estimated at 7K crore: Corporate tax on SMEs with up to 250 crore turnover cut to 25%     

Budget focused on 'Bharat' to create jobs: India Inc     

Event:  Union Budget 2018-19


Leave your Comment

Media Contact

George Skaria
Assistant Secretary General
  +91 11 23738760-70 (Extn 548)
Federation House
Tansen Marg, New Delhi 110001