The first budget of the new decade has ensured the right balance of sustainable growth, social equity and long-term competitiveness of the Indian economy.
The proposed step to create more stability in tax regime is a welcome move. This, combined with simplification and a further improvement in the dispute resolution process, will augur well for tax compliance and increase in resource mobilisation.
The impetus in funding towards railways, roadways and ports will go a long way in improving the competitiveness of Indian industry by reducing the cost of logistics.
The continued support of manufacturing with the Productivity Linked Incentive (PLI) Scheme will further strengthen the Atma Nirbhar Bharat Mission to help the country integrate more strongly with the global supply chain. The PLI scheme coupled with duty rationalisation of inputs especially naphtha will bode well for value-added products and speciality chemicals.
Also, the start of the Hydrogen economy is a welcome step.
All in all, a balanced approach to resource mobilisation, stability in taxation and focused sectoral steps to spur manufacturing growth will ensure that we come out of this pandemic stronger and more competitive.
(The author is the Managing Director and Chief Executive Officer, Tata Chemicals)
(Published 02 February 2021, 17:03 IST)
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