Investment in these areas will create demand in the short run and make the economy more competitive in the long run
In recent months, the government’s macroeconomic policy has acquired a new salience in the context of reversing the current slowdown. The policy currently being pursued is intended primarily to incentivise potential investors by facilitating ease-of-doing-business and making large-scale concessions to the corporate sector. In this context, the government is taking credit for the relatively higher, though by no means spectacular, flow of foreign private capital and the progress of India in the ease-of-doing-business rankings. Further, tax concessions given to the corporate sector in the last budget are estimated at more than Rs.1.40 lakh crore.
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