Budget lays road map for growth, building blocks for long-term goals

NEW DELHI: The finance minister deserves compliments for presenting a Budget that looks into the future while keeping a close eye on the ground.


Presented amid a challenging economic environment, the Budget has laid out a road map for supporting growth and putting in place building blocks for India’s long-term development. We see a clear intent, the right proposals and matching allocations in many areas that would contribute to making India a modern, developed, and an inclusive nation.

As we go through the content more deeply, I would like to reflect on some key pillars of India’s development.

First, the huge thrust on digital transformation. One of the priorities of our public policy is to leverage

technology

in different spheres of economy. We saw this when the JAM trinity (Jan Dhan-Aadhaar-Mobile) was introduced, when DBT (direct benefit transfer) was leveraged to provide support and when digital payments were encouraged.

Technology can help improve governance and quality of life, and the Budget has given a thrust for scaling up digital footprints across the country. Rollout of 5G mobile services, introduction of digital rupee, setting up of digital banks, a National Digital Health Ecosystem, digital management of land records are some noteworthy announcements.

As we build the digital economy of the future, it is important that we come out with a progressive personal data protection legislation that will promote innovations, treat data as a national asset while safeguarding the privacy of our citizens. We also need a robust cyber security doctrine and related laws so that our networks and service delivery platforms remain secure.

Finally, the need for imparting digital skills and enabling access to smartphones for all Indians can really improve learning and productivity.

Second is the boost given to infrastructure development. It is hard to miss the 35% growth in capex. What is more remarkable is that it comes on a high base and underlines the qualitative improvement in the Centre’s expenditure profile. Under the Gati Shakti plan, some of the largest infrastructure projects are being implemented in the country.

The huge network of roads, railways, airports, ports, and logistics hubs being conceived will help us bring down logistics costs, making our industry much more competitive. To meet the funding requirements, while we have seen many new initiatives including the recent setting up of NaBFID, government may also consider floating long tenor ‘Build India’ bonds offered to foreign investors. It must also review the contract enforcement and dispute resolution mechanisms so that the private sector gets greater comfort.

Last, but not the least, should be the enhanced focus on execution — with speed, efficiency, and productivity of this massive outlay becoming the performance matrices.

Third, the continuous focus on the manufacturing sector. With an avowed objective of promoting ‘Atmanirbharta’, the government continues to take measures to strengthen the domestic manufacturing base.

The Budget also delivered on this objective. Additional allocation under

PLI

scheme for solar industry, higher proportion of capital spend on defence acquisition reserved for domestic industry, extension of ECLGS are some measures that stand out. The focus on EV sector through a battery-swapping policy will also promote green mobility and related manufacturing.

The impact of such measures can be scaled up if we continue the focus on bringing down the cost of doing business in the country, ensure regular regulatory reviews to improve the ease in doing business and, importantly, facilitate, incentivise and create ecosystems for a step jump in R&D and innovations, especially in sunrise sectors such as pharmaceuticals, digi technologies, bio technologies, and green technologies.

Fourth is transformation of the social sectors. Given the need and the impact of the pandemic on healthcare and education sectors, these require a transformational approach. The health sector needs to grow in qualitative and quantitative terms beyond the enhanced capacity seen during this pandemic.

Our schools, most of which have been closed for a greater period of the last two years, need to be prepped for opening in a safe manner. The higher education sector needs universities that excel in basic and applied research, but also those which offer skills-based degrees.

While the Budget did offer support to these sectors, the requirements are much larger, and our ambitions should be far greater. Health and education should be the bedrock of new India. I am sure, as the country achieves a sustained high rate of growth, the outlay on these sectors would see a step jump.

The Budget has lifted our spirits and infused another dose of hope and optimism.


(The author is president,

Ficci

& chairman,

HUL

.)

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