Budget 2016: Committed to implement GAAR from April 1, 2017, says Arun Jaitley

NEW DELHI: Finance Minister Arun Jaitley in his Budget 2016 speech said that the Modi government is committed to implementation of GAAR from April 1, 2017.

In an innovative move, Jaitley announced that 100 per cent Foreign Direct Investment ( FDI) will be allowed through FIPB route in food products produced and marketed in India.

Jaitley started his speech by stressing on Indian economy's resilience amidst the current global economic turmoil. "Global economy is in a serious crisis. Financial markets have been battered but Indian economy has held its ground firmly."

"IMF has hailed India as a bright spot. Let us look at our achievements compared to the last three years of the last government. We inherited an economy with low growth and high inflation," Jaitley said.

"We have bridged the trust deficit created by the previous government," Jaitley added.

From focus on agriculture to tax and financial sector reforms, Jaitley outlined nine pillars to transform India: Agriculture and farmer welfare with an aim to double farmers' income in the next five years; Rural sector; Social sector including healthcare; Educational skills and job creation to make India a knowledge based and productive economy; Infrastructure investment to enhance quality of life; Financial sector reforms; Governance reforms and ease of doing business; Prudent management of government finances and Tax reforms to reduce compliance burden.