The Budget is balanced and the best yet by the current regime. It focuses on several policy and structural reforms, which is a welcome change from doling out subsidies.

Entrepreneurship is being encouraged through lower tax rate of 25 per cent for MSMEs. Along with encouraging private enterprise, this 5 per cent reduction will hopefully lead to greater tech spend by these MSMEs, leading to greater demand for B2B products and services being offered by start-ups.

The Start-up India movement has received two welcome changes — continuity of loss carry forward and increase in period for claiming tax exemptions by eligible start-ups. This should help fledgling companies create sustainable growth. In continuation of the demonetisation policy, several initiatives have been announced to push for non-cash modes of payment, including concessional tax rates, dis-incentivising and penalising cash payments. Digital inclusion in India can set a global precedent and help leapfrog payment systems efficiency.

Several initiatives are being taken to increase the attractiveness for foreign direct investment into India. The abolition of Foreign Investment Promotion Board approval for investment in select sectors is most welcome by businesses and the investor fraternity.

From an investor perspective, ambiguity in relation to taxability of conversion of preference shares has been laid to rest by exempting the same. This allows for long-term interest to participate in the growth story of India by global investors. Moreover, exits of investors in the funds have also been exempted, which would mitigate the chances of double taxation and protracted litigation.

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