Industrial growth, Infrastructure Development and Employment are expected be the focal points of the Union Budget 2016. Initiatives that the government has launched like ‘Make in India’ are targeted to help India attain the projected GDP growth rate of 8%. Emphasis on ‘Skill India’ has been done to prepare the employment workforce for the opportunities arising out of ‘Digital India’, ‘Make in India’ and ‘Smart Cities’ initiatives. However to achieve the growth rates, we need logical taxation practices to be implemented. Companies manufacturing products in India, whether for internal consumption or for export should find themselves competitive with companies in other Asian countries without compromising on quality. India’s foreign trade policy must recognize that encouragement of domestic manufacturing of world-class standards is preferable than subsidization. The government must do away with arduous processes for availing duty concessions on import of components and parts.
For success of programs such as ‘Start-Up India’ and ‘Smart Cities’, India needs creation of technological infrastructure. Urban infrastructure improvement is essential to improve productivity. This will need budgetary support from the government. As India is now looked upon as an advanced technology hub by several multinational companies, we expect the government to lower corporate tax to make India more lucrative. This will also boost R&D and product development activities in the country. Protection of intellectual property rights is an important ingredient for attracting foreign investment.