Well-rounded Bankruptcy Code will set the stage for a quick revival

Since taking charge, the government has taken significant strides to revive the economy, and I believe a job well begun is a job half done. It will be of key to build on the momentum of successful of flagship schemes launched by the government, such as Make in India, Skill India, Start Up India, PM Jan Dhan Yojana and PM Mudra Yojana, which are sowing the seeds of a silent industrial revolution in the country.

Despite the recent market volatility, India's position as a preferred investment destination remains intact – something that the finance minister will seek to reinforce with key short- and mid-term solutions in the upcoming Union Budget.

Make in India' is the central pillar of the government's blueprint for growth, aiming to achieve the larger goal of job creation through revival of growth and investments. This was on display at the recently concluded Make in India Week, and I am confident that a number of measures to improve the Ease of Doing Business will be announced in the Budget.

Among my top recommendations for Budget 2016-17 are rationalising direct taxes, sops for start-ups, focus on farm sector and key structural reforms in real estate, labour and MSMEs. The banking and financial sector requires strategic repositioning for creating durable growth impulses. Focus on boosting financial savings, adequate performance linked recapitalization for public sector banks, and a well rounded Bankruptcy Code will set the stage for a quick revival in economic growth.

In addition, meaningful allocation for rural asset creation, laying out adequate incentives for infrastructure takeout financing, and floating of Smart City Bonds would ensure that the revival in growth is sustainable. Last but not the least, the economy needs urgent rationalisation of tax structure to smoothen the transition towards the anticipated GST framework

More than the listed reforms, the markets would like to see a clear cut roadmap for more structural reforms to place the economy on a higher growth path. Monetary adjustments by the RBI are also dependent on the extent of government's finesse in balancing the fiscal with anticipated boost to physical and social infrastructure.

Continued emphasis on public capex, in conjunction with emphasis on structural reforms should enable a revival for core industries. A very important step will be to revitalise PSU banks, which account for three-fourths of domestic credit. Currently under severe NPA stress, this seriously restricts sustained capital injections in infrastructure projects.

The Budget will need to indicate governance reforms to ensure a long-term solution to the debt overhang of infrastructure firms, thus leading to longer term and sustainable financing. Financing propositions for smart city projects, affordable housing and the transformation of agriculture will also remain focal points of the Budget.

Further, I expect some key sops for entrepreneurs and start ups in this Budget. We are witnessing a 'start-up revolution' of sorts and this will be a significant leap forward. We must create innovation districts. The first big thing is to create warehouses, incubators and accelerators and to make investing in them attractive they must be given infrastructure status; or even priority sector status.

There should be some tax breaks given to investors in start-ups, because they are taking disproportionately higher risks. I would like to see some targeted tax incentives coming up in this budget, which will be a key step for start-ups to succeed.

The writer is MD & CEO, YES Bank