Shikha Sharma, managing director and CEO, ICICI Prudential Life Insurance Company

In the backdrop of growing uncertainty in global markets and some initial signs of domestic slowdown, the finance minister has delivered a budget firmly focusing on inclusive growth.

With clear emphasis on areas like health and education - the true pillars of infrastructure in a service economy like ours - in addition to rural development, the finance minister has provided the right impetus to the India growth story.

Given the urgent need to provide both access and improved healthcare to the Indian masses, the government's proposed initiatives in this segment is a move in the right direction. With a 5-year tax holiday for hospitals, the private sector will have a strong incentive to invest in the healthcare provider sector, particularly in terms of higher hospital capacity in the country.

The new tax exemption on mediclaim premium of up to Rs15,000 annually, for medical insurance of parents will provide a further boost to health insurance penetration in the country. These significant initiatives in the healthcare space should ensure a stronger healthcare system in the country.

The cornerstone of India's success as a knowledge economy has been a significant base of its educated population. The government's thrust in this regard with higher allocations for both greater capacities as well as improving quality of education is a big positive for the long-term robustness of the services industry.

Inflation, today, is one of the biggest risks to growth making its management a key concern for policy-makers. The government's decision to broadly maintain stability in indirect tax policies, with minimal changes essentially to address cost-push inflation, is laudable. At the same time, the minister has also attempted to tackle the demand side by increasing the limits of Income Tax exemption. More money in the hands of the consumer along with stable prices clearly augurs well for the growth of the economy. 

Inspite of the considerable investments planned, finance minister has been able to achieve the objective of maintaining overall fiscal discipline with fiscal deficit targeted at 2.5 per cent of GDP for the coming year. Although this may be slightly tough to maintain, the intention is certainly commendable. Overall, Union Budget 2008-09 was a 'no surprise' budget, which is what a budget should be.