With an ambitious goal of becoming a $5-trillion economy, India is at the crossroads of massive transformation. The Government of India’s visionary Viksit Bharat@2047 initiative augers well for the nation that could not be more ready to become a developed powerhouse by the centenary of India’s independence.
The Interim Budget 2024 is aligned with the ongoing journey of transformative growth. The key priorities include fostering green growth; upholding a commitment to fair and inclusive development with a focus on the impoverished, women, youth, and farmers; advancing infrastructure development; and maintaining fiscal prudence. Finance Minister Nirmala Sitharaman has certainly set a roadmap to steer the nation in the right direction. These measures are anticipated to generate fresh opportunities, boost demand, and unleash economic multipliers.
In what is a pre-poll Budget, the government continues to be on the path of fiscal consolidation. India’s fiscal deficit in 2024-25 is estimated to be 5.1 per cent of the GDP, signaling a reduction to below 4.5 per cent by 2025-26 and inflation remains within the policy band. The government’s focus on governance, development, and performance along with bilateral trade agreements that promote FDI will prioritise domestic development.
The backbone of any economy, the infrastructure sector plays a pivotal role in propelling growth. The government has expanded upon the significant threefold increase in capital expenditure over the past four years, which has generated substantial economic growth and employment opportunities. In line with market expectations, the allocation for infrastructure development for the upcoming year is being augmented by 11.1 per cent, accounting for 3.4% of the GDP. The emphasis on three new significant economic railway corridor programs, including energy, mineral, and cement corridors, port connectivity corridors, and high traffic density corridors, aims to eliminate bottlenecks, enhance logistics efficiency, and decrease operational costs. This continued focus on capex-led growth will indeed foster growth and bolster the economy.
Focus on technology and research is crucial for promoting economic expansion and the ~1 trillion corpus will play a crucial role in supporting technological research and incentivising the private sector to substantially enhance research and innovation efforts, especially in emerging sectors.
The availability of increased institutional financing will provide a significant boost to research and development. A loan with an extended tenor will play a crucial role in driving innovation, instilling confidence in our youth, and encouraging them to pursue their aspirations. What we can look forward to is the new scheme that will help strengthen deep tech technologies for defence purposes. The private sector will be encouraged to greatly increase research and innovation in sunrise domains as a result.
Prioritising the harnessing of India’s vast offshore wind energy potential, the finance minister has allocated substantial funds to bolster the green energy sector. Notably, a significant project involves financing to bridge the viability gap for generating one gigawatt (GW) of offshore wind energy. Additionally, initiatives such as establishing coal gasification and liquefaction capacity, integrating e-buses into the public transport network, fortifying the e-vehicle ecosystem through support for manufacturing and charging infrastructure, and promoting climate-resilient activities for a Blue Economy 2.0 are also part of the comprehensive approach towards a more sustainable and eco-friendly future.
This vote-on-account Budget is clearing the path to continue the current momentum of growth and development in the country. It is about fiscal consolidation, about Aatma Nirbharta, about people and sustainability. It is also about development for the people, taking into consideration the collective ambitions of a nation that is transforming rapidly. It is a priority for a ‘new India’, from Amrit Kaal to Kartavya Kaal, one that is developed and resurgent.
As India moves into this new era beyond Amrit Kaal this budget ensures that green energy and sustainability is taking center stage in line with India’s views represented during G20 summit. India continues to emerge as one of the leading voices and contributors in the domain of climate initiatives and sustainability. The emphasis on achieving India’s ambitious net zero target by 2070 underscores a commitment to a more sustainable future not just for India but also for the globe as India aspires to be the bridge that will connect the world in the coming years.
We eagerly await the detailed roadmap for Viksit Bharat@2047, which holds the promise of transformative change.
Source: Business Standard
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