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A Balanced Budget

Posted on 21 March 2017 by Sanjeev Ranjan, Managing Director, International Copper Association India

In the last two and half years, Government of India has continued to move on a path of fiscal consolidation, without compromising on public investment and this trend was evident in this year union budget also.

Budget for 2017-18 had to be framed against the background of declining economic growth and continuing disruptions caused by demonetisation which made the task that more daunting and challenging. Full marks to FM and his team for being aware of these facts and taking steps to address the need for accelerating growth through raising consumer demand and increasing investment. They not only had to continue with the fiscal prudence but provide the much needed focus on capital expenditure, consumption, increasing productivity and employment to the youths.

The announcement of affordable housing being given Infrastructure status is a shot in the arm for Indian Real Estate Sector. The access to cheaper funds for the developers and the low interest rates loans for home buyers in the affordable segment of housing will lead to creation of strong supply and demand which is likely to result in increased participation from the larger private players. This is going to be a big positive for building wire segment which predominantly use copper.

INFRASTRUCTURE is the key for economic growth of the country and Rs 3.96 Lakh crores allocation which is 10% over FY17 estimates only re-emphasises the high importance which the government lays on this. Investment in Railways, airports, 20GW of solar installations, 100% electrification of all villages by May 18 and continued thrust on transmission and distribution will provide lot to cheer for by the copper industry as its likely to help growth of copper market.

We hope the focus on real estate (affordable housing) and infrastructure will provide the much needed push to start the investment cycle and act as multiplier for future private player's participation.


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