US praises Modi budget, calls it balanced, measured
They said Union Finance Minister Arun Jaitley has opened the door to a much wider level of US involvement in India's development plans in the coming years. "Balanced, measured, and thoughtful: a terrific first budget for the Modi government.
"American investors are now revitalised by the positive changes taking shape in India," said long-time India watcher Ron Somers of the recently formed India First Group.
Hailing the decision to increase the FDI caps in both insurance and defence sectors from 26 percent to 49 percent, Somers said although the opening of the latter will eventually be needed to truly facilitate greater transfer of technology, this sends a very positive signal, especially combined with India's announcement to increase defence spending.
US Senator praises provisions in Modi govt's maiden budget
US: This may open the door to a much wider level of American involvement
"Now, if only we can genuinely deepen Indo-US collaboration in the Defence Sector, with India looking to the United States for new artillery and helicopters, transport aircraft, guided missile technology, and speciality radar to beef-up India's homeland security capability - from companies like BAE Systems, Boeing, UTC, Raytheon, and Lockheed, all working closely to establish domestic manufacturing capacity with India's vital private sector and capable DPSUs," Somers said.
Rick
Rossow
from
the
Centre
for
Strategic
and
International
Studies
(CSIS)
wished
the
government
had
seized
the
moment
to
take
more
robust
steps
by
allowing
greater
than
49
percent
FDI
in
defence
manufacturing,
and
by
repealing
the
retrospective
applicability
of
the
2012
amendments
to
the
Income
Tax
Act.
"But
there
were
a
few
very
nice
surprises.
Most
notably,
the
relaxation
of
conditions
necessary
for
foreign
investment
in
construction.
"To me, this may open the door to a much wider level of American involvement in India's development plans in the coming years," Rossow said.
"In studying the details of the various proposed changes in the Budget, a strong narrative emerges: a long pattern of range of changes that should play a small part in helping to stimulate manufacturing, such as cutting the costs for some types of capital equipment and intermediate goods," he said.
"This budget is a step in the right direction to generate employment and foster growth," said Karun Rishi, president of the US-India Chamber of Commerce. "Our expectation of growth oriented budget with fiscally prudent policies to curtail deficit and inflation have been met. It was a fine balancing act."
Key initiatives announced in the budget need to be executed in a time bound manner along with pro-growth and fiscally prudent monetary policy, he said.
Rishi said "Health for All" is a noble goal but has to be matched with higher budgetary allocation. "Focus on capacity building and infrastructure development in terms of new AIIMS and increasing FDI in insurance will have a long term positive impact on the healthcare sector.
"The Finance Minister must increase outlay on health in the future budgets and treat it as a priority sector," Rishi added.
PTI