The Budget is another decisive step forward in our journey towards ‘Viksit Bharat’. It underscores the government’s commitment to a sustainable and inclusive growth path. The stability and continuity in the reforms agenda are welcome.
By prioritising agriculture, manufacturing, MSMEs, exports and ease of doing business — while keeping sustainability and digitisation as underlying themes — the Budget paves the way for continued progress.
The emphasis on manufacturing is well-placed and much appreciated. The four pillars of Make in India — new processes, new infrastructure, new sectors and a new mindset — have been redefining the country’s manufacturing ecosystem. The Budget reinforces the government’s commitment to further bolster this ecosystem.
The announcement to establish a National Manufacturing Mission by providing policy support, execution roadmaps and governance is looked forward to with anticipation. Specific measures for labour-intensive sectors such as footwear, leather, food processing and toys — all of which are dominated by MSMEs — will provide a much-needed boost to employment.
The emphasis on infrastructure development, ease of doing business, skilling and the rationalisation of the customs tariff structure for industrial goods are significant positives that will further enhance the competitiveness of India’s manufacturing sector.
Agriculture sector requires complete and continuous support for furthering inclusion and ensuring food security. The various announcements geared towards climate-proofing the agriculture sector and emphasising self-reliance are well noted.
The new Agri Districts Programme is another significant step. In our pre-Budget submission to the government, FICCI had recommended an agricultural yield mission for the bottom 100 districts, similar to the Aspirational Districts Programme, and it is encouraging to see this suggestion incorporated in the Budget.
The enhancement of the loan limit under the Modified Interest Subvention Scheme or loans taken through the Kisan Credit Card will further empower India’s farm community and thereby strengthen rural resilience and financial inclusion.
Importance of sustainability
The Budget also underscores the importance of sustainability as a key economic pillar across sectors. The emphasis of the National Manufacturing Mission on Clean Tech manufacturing, particularly in solar PV cells, EV batteries, motors and controllers, electrolysers and wind turbines, will move us forward in that direction and reduce our dependence on imports.
The announcements in the Budget are expected to spur two key engines of growth — consumption and investment. Changes in the personal income tax structure will give a boost to demand while the government’s increased capital expenditure, although modest compared to previous years, will continue to add to the nation’s productive capacity. The economic momentum is expected to catch up going ahead.
