Finance minister Arun Jaitley’s visit to Davos to attend the World Economic Forum (WEF) has been followed and tracked by investors and analysts across the world, while giving rise to speculations back home on expectations from the budget.
Jaitley, who held several meetings with high-profile chiefs of companies and banks along with other senior dignitaries, tried to send a clear message: India has to get back to a high-growth path and all steps would be taken by the government to ease rules of doing business in India, boost manufacturing and provide a stable non-adversarial tax regime.
He also hinted at maintaining lower taxes. “I am not in favour of raising the rates of taxation as that could become counter-productive,” Jaitley said.
On expectations from the upcoming budget, Jaitley had said at the WEF, “In terms of incentivising manufacturing, it is very much on our agenda.”
He had also hinted at other announcements to boost manufacturing and thereby aiding the ‘Make in India’ campaign. Manufacturing revival would be critical to generate jobs. The Centre may also look at restricting the minimum alternate tax to 10% to boost manufacturing.
The finance minister indicated that the government would examines various sources of revenue including divestment, dividend and spectrum sale.