A pro-growth Budget with long term vision for emerging Atmanirbhar Bharat

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India’s progressive Union Budget seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. It has a pro-technology focus with futuristic vision. A special thrust on promotion of Digital India and adoption of emerging technologies, including 5G, AI, ML and Drones find mention in this budget. The key highlights of union budget underlines the economic growth estimated at 9.2% to be the highest among all large economies. It promises 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors. It also highlights the Production Linked Incentive (PLI) Schemes, which has the potential to create an additional production of Rs 30 lakh crore. All these initiatives are expected to collectively generate employment and boost output in the medium to long term through multiplier-effects.

Aligned with Vision of ‘Make-in-India’ and ‘Atmanirbhar Bharat’

This budget has a roadmap for achieving the objective of ‘Make-in-India’ and ‘Atmanirbhar Bharat’. The customs duty rationalisation to incentivise domestic manufacturing is a welcome step. The government has provided a booster dose to the Indian economy with a capex intensive budget that supports the vision of Atmanirbhar Bharat. The government has kept its promise of giving a booster dose to the Indian Economy by introducing a Budget, which is supporting its vision of ‘Atmanirbhar Bharat’ as well as incentivising ‘Make in India’ products.

Big Boost to Infrastructure Development

The budget has the PM Gatishakti Scheme with ambitious plans to transform the transportation sector. The seven engines that are going to drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. The budget’s booster dose to infrastructure will help the security industry growth in the long term.

Extended Liquidity Support to MSMEs

There is a greater focus on MSME sector in the budget and as a key stakeholder of the MSME Ecosystem, we feel this a very positive step for the security industry. The government has announced that Udyam, e-shram, NCS and ASEEM portals will be interlinked. The help is provided to 130 lakh MSMEs as additional credit under the Emergency Credit Linked Guarantee Scheme (ECLGS). The extension of this scheme till March 2023 is a thoughtful decision. The firm focus on Skill Development is another positive aspect of the union budget. Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training. Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).

‘Make-in-India’ Push

The government’s intent about the Phased Manufacturing Programme (PMP) needs to be appreciated by the electronic manufacturing industry. This programme has also rationalized the inverted duty structure, which was impeding the development of manufacturing in the sector. The PMP should be immediately followed up with a robust PLI programme to make India a global powerhouse in the electronic manufacturing. The ‘Make-in-India’ push provided in the budget is an interesting opportunity for the company that manufactures the electronic security products. There is big scope potential to increase the production output to meet the growing demand of electronic security products across myriad categories in the country. Besides the production capabilities, the ‘Make-in-India’ roadmap will be able to provide better and more products that can be manufactured in India. We hope that the momentum that the budget has started continues and delivers on its promises.

Capex Push Boosts Growth Prospects

The government has announced a 35% uptick in capital expenditure outlay of Rs. 7.5 trillion. This initiative, along with a Rs. 1 trillion support extended to states for capex commitments, is expected to give a strong push to economic growth. The increased spending will see better revenue growth for companies in the long term, especially those in the private sector related to infrastructure development.

Ease of Doing Business 2.0

The government has scrapped over 25,000 compliances and repealed over 1486 laws in the past few years, the government is moving towards ‘Ease of Doing Business 2.0’. This phase will involve the digitization of processes and interventions, integrations of central and state –level systems via IT bridges and standardizations. The budget promises to various measures, which will lead to removal of overlapping compliances.

Way Forward

The budget shows bold intent to draw a blueprint to steer the economy over 25 years. It continues to build on the vision of ‘Make-in-India’ and ‘Atmanirbhar Bharat’. The Finance minister has opted for high capex to fuel fast growth to resolve a myriad of economic challenges. The budget has a clearly laid strategy to the India’s recovery path with a Atmanirbhar Bharat Plan. This progressive budget has created a well thought roadmap for the people, enterprises and economy. Overall a pro-growth budget with a vision for the new emerging India on global front.

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