The overriding expectation from this budget is that it will make India a more attractive place for foreign investment and business than countries like China, Thailand and Indonesia which are now the preferred destinations for foreign investors. How can the finance minister handle this? I can think of three measures.

An announcement on exit policy is very necessary. It can bring about a dramatic change in the perception of foreigners.

But the exit policy should be accompanied by a safety net. There must be a greater transparency in the actual implementation of guidelines on foreign investment. Some steps towards de-bureaucratisation are essential. Finally, the rupee should become convertible on capital account. This need not be done at one stroke but could be spread over, say, the next three years. But the momentum should come fro this budget.