For the investors, Budget 2015 gives clarity of long-term vision and stability: Ramasubramanian

While the Railway Minister’s first Railway Budget sets the vision for transformation of Railways to become an engine of economic growth for the country, the Finance Minister followed it up with an equally forward-looking and pragmatic budget.

It is growth enabler at a slight cost of fiscal prudence – a step in right direction. Roadmap to cut the corporate tax and clarity on GAAR are other positives from foreign investor’s perspective. Intent of the government to curb black money is noteworthy. Subsidy on fuel has been halved while the FM has budgeted for higher divestment proceeds. Pick up in taxes will be gradual and linked to revival of the economy. Therefore, targeted disinvestments will be the key to boosting government’s non-tax revenue kitty.

Both the Lieutenants of the Prime Minister have set an ambitious reform agenda. Now they need to ensure that the key initiatives are implemented flawlessly and we can see tangible difference. The Budget clearly goes down as practical and not very expansionary which will assuage the concerns of the RBI, leading to a likely reduction in the interest rates. Rating upgrade for India sometime in future and paucity of investment opportunities in other EM spaces will keep the dollar inflow robust.

For the investors, the budget gives clarity of long-term vision and stability of fiscal policies in a potentially high-growth environment. India continues to provide a great opportunity for investors to increase their participation in capital market instruments, including equities and mutual funds.