The Union budget is encouraging, focused and growth oriented, as the government is building momentum to bring a positive overhaul to the economy. The strong focus on infrastructural development through initiatives like hike in investment in infrastructure, allocation of Rs.25, 000 Cr for rural infrastructure and building 20 Million houses in urban India to realize the dream of a roof for each family in India by 2022, are indicators to a positive growth phase.
The announcement that the much awaited GST will be introduced on 1st April 2016 will definitely rejuvenate the industry. GST will make manufacturing more competitive and thereby support the ‘Make in India’ campaign so it is imperative that the ministry should move quickly to usher in GST. The government is also looking closely to enhance road and rail services and boost the infrastructure sector, this will be instrumental to drive the overall growth of the country. However, there is no clear direction on excise duties and taxation which would have interested the manufacturing sector.