By Invite: Inclusive Budget lays strong foundation for viksit Bharat - Kalyan Krishnamurthy

The interim budget holds the promise of propelling the nation towards its vision of ‘Viksit Bharat’ by 2047 — a developed India by the centenary of its independence. With a revised fiscal deficit target of 5.1% and higher capital expenditure, it positions India to assertively claim its position in the global economic landscape.

Along with this, stability in taxes and a higher tax-to-GDP ratio will pave the way for a strong foundation for growth while adhering to fiscal prudence.

Higher capital expenditure will catalyse broader economic growth, generating a ripple effect in the economy. Reduced government borrowing leaves more room for the private players and will help them raise funds at lower costs. As the finance minister Nirmala Sitharaman highlighted, people have more income in their hands than ever before.

Better infrastructure leading to reduced logistics costs and higher disposable incomes bode well for ecommerce companies who can now reach more customers with value and affordability propositions.

Unlocking opportunities

The announcement of a Rs 1-lakh-crore corpus for providing 50-year loans at low-interest rates reflects the government’s appreciation of long-term funding needs of the Indian industry.

Access to greater institutional financing gives enhanced confidence to put money and time in R&D. Long tenure loans will play a pivotal role in catalysing innovation and instilling conviction in our youth to chase their dreams.

In addition, the extension of tax benefits to startups and investments made by sovereign wealth and pension funds as well as certain tax exemptions to some IFSC units will provide continuity in taxation.

The thrust on three new major economic railway corridor programmes — energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors — will remove bottlenecks, improve logistics efficiency and reduce costs. This will boost warehousing and storage centers across the country, helping ecommerce companies connect to the last mile and reach people even faster.

Think big mantra for MSMEs

PM-Vishwakarma Yojana provides end-to-end support to artisans and craftspeople engaged in 18 trades. The budget prioritises a big leg-up to them as well as MSMEs by recognising their investment needs. Low-interest rate loans will improve access to capital for entrepreneurs and spur risk-taking, essential for innovation.

Encouraging private and public investment in aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding will give MSMEs and farmers room to grow in size while bringing in more capital and technology in the sector.

The budgetary provisions reflect the government’s commitment to sustainable growth that is in harmony with the needs of the people and their environment.