Indian Economy
Budget 1997

Rashmin Sanghvi & Associates

Partners :
Rashmin C. Sanghvi
Naresh A. Ajwani

To,

Clients, friends and surfers,

Dear Sir/ Madam,

We are pleased to present our observations on Budget 1997 and the Indian Economy.

The budget announced by the Finance Minister was beyond the expectations of most of us. However, before the budget could be passed , there was a political crisis, the Prime Minister had to resign. There was an unwelcome suspense. Ultimately however, a new Government with almost the same ministers got installed. Almost the same bill got passed.

The all round reduction in the taxes should bring down the costs and help in achieving the next target of GDP growth of 7%.

We wish the Finance Minister and his team a grand success. A copy of the letter which we had sent to the Finance Minister immediately after the presentation of budget on 28th February is available.

We have tried to study the budget and prepare this analysis after things got a final shape. The extraordinary political events have delayed the presentation of this analysis. We believe, still, that a considered analysis may be more useful than a quick note.

Any comments from you will be welcome.

Thanking you.

Yours sincerely,
For RASHMIN SANGHVI & ASSOCIATES

RASHMIN SANGHVI.

NARESH AJWANI.

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C O N T E N T S

I.	Executive summary
II.	Letter to the Honourable Finance Minister
III.	The Economy
IV.	Direct taxes
	• Highlights
	• General
	• Residents
	• Non-residents
V.	Achievements by the present Government
VI.	Conclusion
VII.	Paper on Business Economics
VIII.	G.D.P. Graphs