Saturday, March 17, 2012

Budget Reactions : IDA Ireland - Minakshi Batra, Director India


“India’s economic growth was marred last year with slower recovery due to deceleration in industrial growth as well as external factors like euro debt crisis and political turmoil in Middle East. Against this context, the Union Budget presented by the Finance Minister today was realistic in nature aimed towards bringing the increasing fiscal deficit under control, ensure fiscal discipline and boosting the government's revenues.



The budget focuses on high growth sectors such as capital markets, infrastructure and agriculture Reduction of custom duty for equipment for expansion or setting up of fertilizer projects and better agricultural credit will catalyze the growth in food and agricultural sector. The investment in infrastructure is expected to go up to 50 lakh crore, with half of this, expected to come from private sector. The first infrastructure debt fund apportioned Rs 8000 crores will also augur well from an infrastructure industry perspective.

In terms of tax reforms, the proposals for 2012-13 mark progress in the direction of movement towards DTC and GST which will bring about uniformity in taxation. The cascading effect of dividend distribution tax has been removed; benefitting Indian MNC with operations in other parts of the world.

Over all, the Union Budget for 2012-2013 is quite a balanced one and is a step in the right direction.’’

About IDA

Ireland’s inward investment promotion agency, IDA Ireland (Industrial Development Agency) is responsible for the attraction and development of foreign investment in Ireland. 

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