Following are reactions from industry executives and economists:
DEEPASHREE SHETTY, PARTNER, GLOBAL EMPLOYER SERVICES, TAX & REGULATORY SERVICES, BDO INDIA
“The proposal to exempt income up to 1.2 million rupees ($13,867.06) is a big boost to the middle-class taxpayers. This is in line with the recent measures to make the new tax regime a preferred tax regime. It would also create more disposable income for the taxpayers, strengthening their expenditure power.”
RC BHARGAVA, MARUTI SUZUKI CHAIRMAN, TO ETNOW
“The tax cut is going to be a helpful factor in accelerating demand for various kinds of consumer products.”
ANITHA RANGAN, ECONOMIST, EQUIRUS
“While capex growth does not look very robust, implicit capex via long-term reforms shows promise. Simplification of direct taxes reforms will be announced in a week, but the icing on the cake came in the end with income tax relief to the middle class with direct tax foregone of 1 trillion rupees.”
RADHIKA RAO, DBS BANK, SENIOR ECONOMIST
“One of other major pillars was also to expand India’s footprint in global supply chains and boost exports, towards which a re-assessment of regulatory reforms will be undertaken to improve the ease of doing business, along with further rationalisation in import tariffs.”