This article originally appeared on Daily News and Analysis.

Finance minister Arun Jaitley’s Budget proposals seek to transform rural lives and energise the economy through enhanced government expenditure but doesn’t conform to the conventional expectations of the manufacturing sector—typically duty cuts and deductions. What it does, however, is creates demand and proposes a host of measures to propel manufacturing growth consistent with the government’s ‘Make in India’ vision.

Boosting direct demand

Halving tax rate for individuals with income of Rs 2.5—5 lakh per annum to 5%, will increase the disposable income of the middle class and boost demand. Besides, measures such as increasing target for agricultural credit to Rs 10 lakh crore and interest waivers for farmers will lead to higher rural incomes and improve demand for farm implements such as tractors, shredders and harvesters.

Read the full article at Daily News and Analysis.