Union Budget 2017

Fiscal review of Indian economy

• The Indian economy ended the last fiscal on a high with growth for the full year touching 7.6% inspite of a struggling global economy and worsened investment climate.
• In the current fiscal, the domestic economy has continued to show resilience even in the wake of deteriorating global conditions and increased protectionist measures.
• The ongoing fiscal can be seen as the year where a number of game changing initiatives such as the passage of the constitutional amendment bill for GST and Bankruptcy code bill will be agreed upon.

Recent changes in the Indian economy

Notwithstanding demonetization, the economy stands at the cusp of noteworthy changes with a move towards GST and a unified tax regime along with a thrust on greater cash accountability and digitization across payment channels. As is the case with any big change, it comes with short term adjustment costs for longer term gains. However, these gains are not a given and can only be realized if there is continuous push towards achieving stated goals.

The Government's approach for Union Budget 2017

The government on its part has shown confidence in its existing approach and schemes, and has increased allocations in a number of programs in the Union Budget 2017. The next step would clearly be the effective implementation of these schemes, which can potentially help the economy from a structural perspective. Schemes to alleviate skill shortages are likely to also lead to a healthier job market that is in tune with the changing times while increased rural spend is likely to bring about changes at the supply side of the economy.

While there remain challenges on the domestic front such as inflation, and on the international front due to geo-political concerns, the stage set by Union Budget 2017 seems to harbinger a more sustainable growth process, and in turn, headway for our economy.