Budget to boost infrastructure growth

The Union Budget’s 23 per cent hike in government allocation to infrastructure, issue of tax-free infrastructure bonds worth Rs 30,000, steps to encourage FII long-term investment in the infrastructure sector, and creation of infrastructure debt funds with a reduced FII withholding tax rate of 5 per cent, from 20 per cent, may boost the growth of infrastructure sector. Raising FII investment limit in infrastructure bonds may go a long way in deepening the corporate bond market.