In a way, the budget was on expected lines i.e. laying the direction for next 5 years. The thrust of Make in India was evident. Starting from customs duty which has generally been increased across the board on items which are made in India or can be made in India, to tax exemptions for large scale manufacturers of needed technologies. International Financial Centers, the likes of GIFT in Gujarat, are being encouraged through a slew of tax exemptions on similar lines as to those offered to Special Economic Zones.
Wisely, the local sourcing requirements, for those foreign firms setting up single brand retail, are to be diluted. Aviation, Media and Insurance sectors are indicated to be further opened up. In similar spirit, multiple labour laws to be submerged into 4 codes. However, no mention was made of the earlier touted Direct Tax Code to replace the current Direct Tax Law.
Overall, the intent and direction remain the same. Will this push the industry to react favorably as well as encourage foreign investors? I sure hope so.
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