By Amit Syngle
There has been a significant amount of geopolitical uncertainty across the world. This has been coupled with volatility in the macroeconomic environment with inflationary trends that have moderated but are still on the higher side. In the face of these challenges, India has emerged stronger, moving steadily on its growth path. The government through its Budget had the vital task of furthering this story to ensure that India continues her resilient growth. The finance minister’s Budget has done just that by boosting job creation, skilling and growth, especially in the rural space, and continuing its focus on infrastructure development. Inclusive growth, which is investment and empowerment-led in line with its vision of Viksit Bharat, is high on the Budget promises. This Budget will enable the continuation of the virtuous cycle of economic growth and employment creation, thereby balancing consumer needs with industry requirements.
One of the things that clearly stood out for me was the government’s thrust towards the area of skilling and inclusive employment generation for the youth in the country. This was presented through various schemes and incentives such as support on financial loans, EPFO contributions, wage provisions and encouragement to working women through the set up of hostels. The skilling agenda was also very comprehensive and covered the upgrade of industrial training hubs with outcome-oriented programmes, internship opportunities as well as course content and design aligned with industry needs.
One of the other positive takeaways from the Budget has been the allocation of about Rs 2.66 trillion for rural development and rural infrastructure. This includes activities to bring about resilience and increase productivity in agriculture through transforming research, coupled with initiatives around natural farming. Additionally, efforts will also be made to implement digital public infrastructure in agriculture to cover farmers and their lands. All of these will help strengthen our rural economy. Further, encouraging the youth and their initiatives in these segments will bring sustainable, modern and more profitable methods of farming, boosting our agrarian economy.
Another initiative that is beneficial and reflects the government’s sustained dedication to infrastructure development was its adherence to the capital expenditure target of Rs 11.11 trillion (3.4% of GDP). Investment in infrastructure by the private sector will also be promoted through viability gap funding and enabling policies and regulations. The government’s focus and spending on infrastructure will go a long way to keep economic growth on track.
Focus on urban housing needs is another constructive step by the government and has a direct impact on our industry. The PM Awas Yojana Urban 2.0 will address the needs of about 1 crore urban poor and middle-class families. Furthermore, enabling policies and regulations for efficient and transparent rental housing markets will also be put in place and provide added buoyancy to these markets.
Revision of tax slabs and increasing the standard deductions is another key positive which will provide the much-needed fillip to the quantum of disposable income in the hands of the consumer, boost spending capacities and stimulate consumption.
Ultimately, through a host of initiatives and opportunities for the industry and public at large, I believe the government has built on its work over the past few years, creating a strong foundation for a sustainable growth trajectory for the Indian economy. This Budget can enhance job creation and thus bolster consumption and economic activity, enabling long-term stability and growth for our nation.
The author is the MD and CEO of Asian Paints.