With India’s growth estimated to be at 9.2% - the highest among large economies – the country is now in a robust position to withstand challenges and adopt a resilient approach for economic growth and welfare of its citizens.
By Pawan Munjal,
This is a forward-thinking government that has not only stayed firmly on course to fulfil its long-term economic vision for the country; it has also confidently shared the blueprint for the next 25 years.
The finance minister has delivered a progressive Budget, spelling out the government’s goal to complement macro-growth with micro-all-inclusive welfare, while giving a thrust to the key economic drivers such as strengthening the start-up infrastructure, digitisation, fintech, tech-enabled development, energy transition and climate action.
With India’s growth estimated to be at 9.2% – the highest among large economies – the country is now in a robust position to withstand challenges and adopt a resilient approach for economic growth and welfare of its citizens.
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One of the landmark announcements of this Budget is the battery swapping policy, which has the potential to be a game-changer in catalysing the migration to EVs. While the scale of its impact will be clear upon formation of the policy, the industry is committed to sharing its insights and expertise with the government to make this a reality. I am personally delighted with this move by the government as it resonates with our company’s and my own commitment to the cause of sustainability.
The renewed focus on sustainability through natural and organic farming, PLI on green energy and the creation of funds will further India’s efforts to meet climate-change goals for a sustainable future.
The continued focus on infrastructure will not only improve the quality of lives and generate jobs but will also help Indian industry become globally competitive. The increase in capex spends will have a cascading effect on private investments and structural growth across sectors. The initiative to give interest-free loans to states to the tune of Rs 1 lakh crore for infrastructural investments will further boost key projects with potential for long-term dividends.
The resurgent Budget has put the country firmly on path for its $5-trillion target, while showing the roadmap to India’s dominant role in a new post-pandemic world order.
This Budget’s provisions are consistent with the government’s clearly spelt out priorities of Make In India and Atmanirbhar Bharat. The government has sharpened its focus to boost domestic manufacturing across sectors, particularly the defence sector.
The higher percentage reserved for domestic industry, coupled with the removal of customs duty exemptions on many capital goods will notably encourage domestic production. Addressing the concerns of the MSME sector, the ECLGS has been extended and expanded to include sectors such as hospitality that have been hit hard by the pandemic. This a welcome move that will help credit growth for NBFCs as well as enable recovery of existing exposure from this sector.
Overall, this is a Budget that is conscious to the needs of every segment of the economy, while staying true to the long-term goal of nation building.
The author is Chairman & CEO, Hero MotoCorp
