Union Budget 2017 looks to push digital India in hinterland

New Delhi | Published: February 2, 2017 6:02:58 AM

With successful implementation of demonetisation, the current Budget an awaited event.

Now, systemically important NBFCs will be treated at par with banks in QIB category.Now, systemically important NBFCs will be treated at par with banks in QIB category.

With successful implementation of demonetisation, the current Budget an awaited event. The Budget allocates the available resources to build the inherent strength of the economy by focussing on agriculture, rural India, SMEs and infrastructure. With the impetus on digital platforms for financial inclusion, this Budget is in sync to transform traditional Bharat to a digital India, which, in turn, will aid in a cleaner and transparent economy.

Also, by assigning affordable housing under infra status, cheaper funds will give a boost to the ‘Housing for All’ initiative.

Now, systemically important NBFCs will be treated at par with banks in QIB category. The move will help public issue-bound companies to have one more type of institutional investors for fund raising. For NBFCs too, this move opens avenue for portfolio diversification and quality investments.

With the environment of easy lending and easy access to credit set up through MUDRA and the Pradhan Mantri Mudra Yojana (PMMY), rural India’s growth story has now got its firm footing, enabling it to take the country’s economic growth to a new trajectory.

What is also good to see is that the government’s constant efforts to reach out to the under-served and provide them with financial services. The digital initiatives in unbanked and hinterland areas gives access to formal credit that will go a long way in building cashless culture nationwide.

The successful implementation of MNREGA has enabled increase in rural employment and women empowerment. The government’s continuous thrust on the same will facilitate rural productivity and develop quality infrastructure.

The government has focussed on key social spending like education and healthcare, thereby improving the quality of life. The Budget aims at inclusive growth, with reforms, by generating employment and supporting the bottom of the pyramid entrepreneurs.

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To sum it up, the Budget is in sync with the long-term growth trajectory of the economy.

George Alexander Muthoot, Managing Director, Muthoot Finance

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