Union Budget FY24, the first budget of Amrit Kaal (the 25 years in the run-up to 2047 when Independent India turns 100) lays a strong foundation for a sustainable and an inclusive economic growth trajectory for India.
The Budget was able to strike a fine balance between economic growth and fiscal prudence amidst a global backdrop of slowing growth and high inflation. It focused on growth driven by 4Cs- Capex, Consumption, Credit offtake and Clean energy. It further builds on the foundation set by previous budgets of capex and infrastructure driven growth which will have a strong multiplier effect on manufacturing sector and provide further impetus to private capex cycle. Moreover, over the years an ongoing improvement in the quality of spending (higher capital instead of revenue expenditure) by the Central government will help India sustain higher growth rates in the medium to long term as well.
Tweaking the income tax regime to boost consumption, focus on skill development, impetus to affordable housing, prioritizing capital investment towards achieving India’s goal of net zero carbon emission while maintaining a prudent fiscal deficit path with a target of 5.9% of GDP in FY24, are steps in the right direction. Despite the last full year Budget before general elections, FM was able to deliver a pragmatic Budget ticking multiple boxes with strong focus on structural reforms sans populism.
– Satish Pai – Managing Director, Hindalco Industries.