Ravi Rama­murti, Pro­fessor of Inter­na­tional Busi­ness and Strategy and Director, Center for Emerging Mar­kets at North­east­er­nUni­ver­sity, Boston, Mass­a­chu­setts, com­menting on the Budget said, “The Budget was bound to dis­ap­point, given how high our expec­ta­tions were.”

He said that it has few bold strokes. The gov­ern­ment was boxed in polit­i­cally, by the impending state elec­tions, and finan­cially, by the momentum of the pre­vious government’s commitments.

Rama­murti said, “I don’t think lack of time to pre­pare the budget was a problem. Even if Jaitley had two more months, he would still be boxed in polit­i­cally and financially.”

Sharing his views on FDI in defence that will have Rs 2.29 tril­lion in 2014–15, Rama­murti said that there are over­tures to for­eign com­pa­nies that may draw in more FDI. “Its unfor­tu­nate that India has to spend so much on defence and that we have to look at defence to bring in more FDI. I’d rather want India to get more FDI in low– or mid-​​tech man­u­fac­turing, where China’s declining com­petive­ness could be our wind­fall, and many more jobs could be cre­ated quickly.”

He added that the best way to attract more FDI is to restore India’s growth to 7–8 per cent as the FM has pro­posed. A country of India’s size and com­plexity cannot be turned around by a single Budget. But I am con­fi­dent that over time the Modi gov­ern­ment will fix struc­tural prob­lems in the budget. Faster growth will increase gov­ern­ment rev­enues and make it easier to cut expenses, such as sub­si­dies, or fix labour laws, he explained.

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