Agencies
The Budget builds a strong foundation for the future with a focus on infrastructure, sustainability and growth while maintaining fiscal prudence. It has been presented in the extraordinary backdrop of yet another wave of the pandemic hitting the economy. Yet, it has been steadfast in its purpose of supporting the underlying recovery and closing the gaps by way of 'Agile' policymaking as enumerated in the Economic Survey.
Infrastructure
Capex increases of 35% to Rs 7.5 lakh crore, will be a key driver of long-term economic growth. It will have a higher multiplier effect in terms of jobs and growth. The infrastructure spending of the government seems to be centered around the PM Gati Shakti Master Plan to attract private investments in transport and logistics sector.
Sustainability
India's commitment to addressing climate change is reinforced in this Budget, with various initiatives around Clean Mobility. It proposes the use of urban public transport supported by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EV vehicles. A battery swapping policy is set to be rolled out along with inter-operability standards. Moreover, private sector will be encouraged to develop business models for 'Battery or Energy as a Service'. This can help in bringing down the cost of EVs upfront and will promote faster pace of EV adoption.
Inclusive growth
The Budget addresses the rural sector, MSMEs and various economically vulnerable sections of society. In addition to safety nets, it emphasizes rural infrastructure and quality of living as evidenced from an allocation of Rs 60,000 crore for the tap water scheme. There is a major boost to housing. PM Awaas scheme allocation has been increased to Rs 48,000 crore, up by 75% YoY. Importantly, the Budget will drive a wave of technology in the agriculture and farming sector with technology usage such as kisan drones for crop assessments, land records, spraying of insecticides to name a few.
In conclusion, it is heartening to note that the government has not shied away from spending big without getting bogged down by concerns from global rating agencies or markets over crowding out of private investment. While it does not provide short-term stimulus (likely due to inflation concerns), it addresses a more important need to create long-term sustainable growth.
The Budget has got its head and heart in the right place.
Writer is MD &CEO, ICICI Lombard
Infrastructure
Capex increases of 35% to Rs 7.5 lakh crore, will be a key driver of long-term economic growth. It will have a higher multiplier effect in terms of jobs and growth. The infrastructure spending of the government seems to be centered around the PM Gati Shakti Master Plan to attract private investments in transport and logistics sector.
Sustainability
India's commitment to addressing climate change is reinforced in this Budget, with various initiatives around Clean Mobility. It proposes the use of urban public transport supported by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EV vehicles. A battery swapping policy is set to be rolled out along with inter-operability standards. Moreover, private sector will be encouraged to develop business models for 'Battery or Energy as a Service'. This can help in bringing down the cost of EVs upfront and will promote faster pace of EV adoption.
Inclusive growth
The Budget addresses the rural sector, MSMEs and various economically vulnerable sections of society. In addition to safety nets, it emphasizes rural infrastructure and quality of living as evidenced from an allocation of Rs 60,000 crore for the tap water scheme. There is a major boost to housing. PM Awaas scheme allocation has been increased to Rs 48,000 crore, up by 75% YoY. Importantly, the Budget will drive a wave of technology in the agriculture and farming sector with technology usage such as kisan drones for crop assessments, land records, spraying of insecticides to name a few.
In conclusion, it is heartening to note that the government has not shied away from spending big without getting bogged down by concerns from global rating agencies or markets over crowding out of private investment. While it does not provide short-term stimulus (likely due to inflation concerns), it addresses a more important need to create long-term sustainable growth.
The Budget has got its head and heart in the right place.
Writer is MD &CEO, ICICI Lombard
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Read More News on
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.