FM Arun Jaitley's report card: Market experts call Budget progressive, give it 8 out of 10

NEW DELHI: Analysts gave finance minister Arun Jaitley's budget an 8.2 out of 10, calling it balanced, progressive and innovative. They said Jaitley's financial draft for India set the pace for addressing several long-pending issues.

Experts felt the cut in corporate taxes, GAAR delay of 2 years, crackdown on illegal money, dropping of wealth tax will auger well for the markets. "This is a path-breaking budget as it clearly spells the vision of the Modi-led BJP government. This is a budget for inclusive growth," said D K Aggarwal, CMD, SMC Investments and Advisors Ltd.

"For investors, the budget gives clarity of long-term vision and stability of fiscal policies in a potentially high-growth environment," said Sudhakar Ramasubramanian MD-Aditya Birla Money Ltd.

"India continues to provide a great opportunity for investors to increase their participation in capital market instruments," he added.


Budget 2015 took significant steps in the direction of boosting economic growth by giving significant boost to infrastructure spending and phasing out sick PSUs. The budget largely seems to aim at paving the way for India growth without losing eye on welfare priorities, said experts.

"Corporate investments would start seeing the light of the day with the government's assurance of ease of doing business. With more disposable investments in the hands of investors, the proposals laid down in the budget should start attracting increased retail participation," said Vijay Singhania, Founder of Trade smart online.

"A sharp pre-budget rally discourages any pressing need to buy right now. However, one should look at select sectors such as IT, banking, infrastructure and power," he added.

Current account deficit is also expected to be only 1.3 per cent for the current year which will help in the strengthening of rupee and controlling inflation.

The Budget focused on improving procedures and easing business conditions.

"Though it is a fairly well balance budget, the market expectations were really sky rocketing before this day. So I would not be surprised to see a market correction of maybe 5-6%," says Nitin Jain, CEO - Retail Capital Markets & Global Asset Management at Edelweiss.

"It is not close to the 'visionary document' that people have been talking about. Overall, I would still say it is well-balanced one. The levy on corporate taxation, rationalization of wealth tax, incentives by more expenditure towards infrastructure are all positives. But nowhere close to what markets were expecting," he added.