In a statement issued today, Chandrajit Banerjee, Director General of CII, said, “The interim budget consolidates India’s globally acclaimed economic strategy that preps up the economy for the future.
The interim budget, presented by Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs, Government of India, consolidates India’s economic strategy, prioritizing capex-driven growth that boosts demand and improves the competitiveness of the industry. The strategy has led to India becoming a bright spot in the midst of a slowing global economy.
CII had suggested continued thrust on capital expenditure, which has a high multiplier effect on the economy and welcomes the allocation of Rs 11.1 lakh crores for capex, an increase of 11.1 percent over the high base of last year. The interim budget also continues the thrust on state capex, with an allocation of Rs 1.3 lakh crores to be provided as 50-year interest-free loans for state capex and Rs 75,000 crores linked to state-level reforms.
Programs with a thrust on housing for the middle class; additional 2 crore houses under PM Awas Yojana (Gramin); a plethora of announcements to boost the rural economy – such as a focus on creating post-harvest infrastructure, a mission for achieving Atmanirbharta in oilseeds, dairy development, promotion of fishing and aquaculture; creation of an additional 1 lakhpati didis, carry forward India’s new approach to development through inclusion and empowerment.
The measures will provide economic security to the vulnerable sections of society, raising their standards of living and expanding the rapidly growing Indian consumer market.This expansion has a direct bearing on economic growth for the consumption-led Indian economy. Broad basing of consumption also adds to the resilience of consumption-driven growth.
Given a world where the future is marred with uncertainties – economic, political, and geopolitical, India’s continued high growth with inclusion makes the Indian economy resilient, prepping it up for the future and also takes India forward on its journey of becoming a developed nation by 2047.