Budget likely to woo foreign investors: Reuters Poll

Wooing foreign capital to lift the economy is truly a mug’s game. How far can India go to reduce the tax burden or provided incentives in its present state of fiscal constraint? The earlier attempt at ‘reforms’ such as opening FDI in multi-product retail, aviation, etc are yet to show any result on the ground. Meanwhile multinationals are putting more pressure for avoiding taxes (on capital gains, etc.) which will further queer the fiscal front. It also seems that in a democracy, the expectation of these foreign investors, is only for their own gains and nothing for the people in the country. How sustainable will any reform be if the people are disillusioned by growing income disparities, rising unemployment, reduction in public health and welfare? The UPA-II is a fragile coalition and the card castle can collapse by a whiff of adverse wind from one of the partners. There is thus utter realism in the demands of the MNCs and also their expectations.