'The Budget is a step in the right direction'

Arun Firodia

The Budget is a right step in the right direction. It is a new deal with many initiatives on wide-ranging fronts. The finance minister has incentivised those who want to reform and probably would penalize those who do not want reform. To that extent, the Budget is very welcome.

However, the Budget falls short of doing something substantial to eliminate recession. That is the problem number one in front of the investor in India.

There will be a slight reduction of prices in the two wheelers most probably. Regarding infrastructure, agriculture, entertainment and housing industry, the FM has accounted many steps. That is a welcome direction. Plans and hike in expenditure have been announced.

In the auto sector, there will be slight improvement in demand because of the cut in the input costs and fuel prices. But there is no cut on the excise duties. So there is not much of a great news for the auto sector.

Overall, the Budget is a step in the direction. But I doubt whether it will do miracles.

Arun Firodia is chairman, Kinetic Engineering Ltd

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