A major push has been given to infrastructure and logistics through speed power in line with expectations
The Budget has attempted to balance the imperatives of near-term growth with long-term priorities.
In line with expectations, a major push has been given to infrastructure and logistics through Gati Shakti. The objective of the National Master Plan is to comprehensively upgrade India’s infrastructure; This will not only support near-term growth but enhance the competitiveness of the Indian industry. The focus on 7 key engines helps bring much needed synergy between the infrastructure and logistics sectors. An important factor in this plan is the expansion of National Highways up to 25,000 km. Gati Shakti is expected to create 60 lakh new jobs. Financial planning for these investments now seems more robust and reliable; Both the Center and the states will now need to focus on its speedy implementation.
Delivery of digital and hi-tech services, use of drones and a fund to finance agricultural start-ups are steps to ensure that agricultural growth does not falter. The agriculture sector has strong backward and forward linkages, affecting the industry and overall economic growth. The Centre’s capex outlay of ₹7.5 trillion is well beyond expectations. This is a morale booster for corporates betting on capital expenditure in the future as there is a rush of public investment in private capital expenditure. This reinforces my strong belief that a ‘Capex Festival’ is beginning in India.
As the third COVID wave, demand outlook improves and recovery takes shape, private capex is sure to follow suit. Signs of this are clearly visible in the announcements made by many companies. In a nutshell, the budget aims to achieve overall macroeconomic development and human welfare with emphasis on infrastructure, inclusive growth, emphasis on sunrise sectors, climate action and funding of investments.