Budget sets foundation for a transparent and inclusive growth: Nilesh Shah

Finance Minister Nirmala Sitharaman has in her Budget speech demonstrated that she is here to score big. She is playing like a set batswomen who is now reading the ball good enough to hit it where she wants. The FM is not just happy with the laurels of steering the economy to a growth path at 9 per cent-plus, but she wants to ensure that India strides strongly into the future, in its “Amrit Kaal”. Not only should growth accelerate, but it should also be more efficient, transparent, inclusive and in a manner that leaves the environment fit to live for future generations.

The increase in government capital expenditure by 35 per cent to Rs 7.5 lakh crore is to continue with the public infrastructure creation momentum of previous years. A continued spend here is good both in the absence of and to promote private capital expenditure. Swift and efficient movement of goods and people is the artery of any developed nation. Spends via PM Gati Shakti are focused to make sure that we have multiple modes of transportation including roads, railways, airports, ports, mass transport and waterways to transfer people and goods efficiently. This shall also help reduce the logistics cost for India Inc significantly over the coming years. Housing for All under PM Awas Yojna and connecting all households via Jal Se Nal (incremental 3.8 crore households in 2022-23) are all spending for inclusive growth.

PLI or Production Linked Incentive Schemes are already helping India to become a manufacturing hub in many categories. The FM has proposed a 7.5 per cent tariff on import of capital goods. Along with concessions being removed, this shall result in the promotion of capital goods being manufactured in India. The government’s incremental support of Rs 19,500 crore for high-energy efficient solar modules is another step in the direction. Considering that the whole world is looking at renewable sources of energy, we should become a global supplier for solar modules. This, along with proposals in the Budget to improve the adoption of EV technology in vehicles, shall help create a better future for generations ahead.

The FM is also aiming for inclusive growth. She is helping farmers with the latest technologies, including drones, to increase crop output and get the right consideration for the produce. The Emergency Credit Line Guarantee Scheme (ECLGS), extended till March 23, will help the MSME sector stand up better. Inclusion of the hospitality sector with support of Rs 50,000 crore under the scheme will help the revival of the travel and tourism industry, which is trying to get back on its feet after the Covid-19 disruptions.

The government is also promoting the use of digital in all fields. Digital payments are gaining traction and with the proposed joining of 1.2 lakh post offices into the core banking network, this will gain further momentum. Setting up 75 Digital Banking Units in 75 business districts to mark the 75th year of Independence will also increase the adoption of digital payments. The Digital Rupee that the RBI is likely to launch this year and bringing virtual digital assets under the tax ambit are all steps in the right direction. Enhancing internet connectivity to reach the smallest of villages will also boost the digital ecosystem.

Higher compliance on account of simplified laws is already there, as is being seen in the strong buoyancy in tax collections. January 2022 GST collections, at Rs 1.49 lakh crore, is a record. The launch of Ease of Doing Business 2.0 and Ease of Living based on the principles of trust will result in more compliant behaviour and higher investments.

All this spending to boost the growth rates, while being inclusive, has not deviated the FM from the path of fiscal prudence. She has been conservative on her receipts and is still looking at a 50 basis point reduction in fiscal deficit to 6.4 per cent in FY23. India is well on its path to bring down the fiscal deficit below 5 per cent in FY26.

India is getting ready for its ‘Amrit Kaal’.