The continued focus on supporting growth targeting all-inclusive welfare through various schemes in this year’s Union Budget is welcome. This comes at a time when the pandemic has further exacerbated inequality not only in the country but across the globe. In line with the suggestions given by CII, the strategy laid out by the budget is to spend on infrastructure projects to generate employment and increase demand.
The government’s continued focus on public capital expenditure, especially the PM Gatiya Shakti Yojana, is noteworthy, to increase productivity and investment. A substantial increase in CapEx outlay by 35% to ₹7.5 lakh crore during FY2022-23 will help boost the economy and demand growth not only in the said year but also in the years to come.
This budget’s reform-oriented approach to improving the business environment by introducing EODB 2.0 – which is based in trust-based governance, and at the same time digitizing manual processes targeting the integration of central and state-level compliances Will definitely help unlock the growth potential of the industry. Investment in logistics infrastructure will reduce the cost of doing business. Several measures have been announced to relieve the stress of the common man. The budget has focused on inclusivity by targeting the bottom half of the pyramid through welfare schemes. The increased allocation in PM Awas Yojana to benefit the weaker section of the population and launch of new schemes like PM-Divine, Aspirational Blocks and Vibrant Village Program are inspiring to achieve all round, inclusive growth. The government’s initiatives for the agriculture sector, especially the announcement of an assured income of ₹ 2.37 lakh crore on account of direct payment for MSP of wheat and paddy, will help ease tensions among farmers. The budget’s priority areas – momentum power, inclusive growth, sunrise opportunities, energy and climate action, and funding investment – set the outlook for the country’s future. With all sectors contributing to growth, the Economic Survey growth target of 8.0-8.5% looks achievable in 2022-23, making India the fastest growing major economy for two consecutive years.
TV Narendran, President, CII
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