CII welcomes the budget for new India which addresses the growth imperatives without compromising on the fiscal prudence path. Through a slew of measures in forward-looking areas encompassing green growth, digital infra, urban rejuvenation among others, we are happy to note that the budget lays the roadmap for preparing India for the Amrit Kaal, the next 25 years upto India@100, said Mr Sanjiv Bajaj, President, CII, while reacting to the budget proposals, today.
It is encouraging to note that the budget has made a bold attempt to invigorate the critical demand drivers of consumption and investment. The move to rationalise personal income tax rates will go a long way in increasing disposable incomes, thus giving consumption a leg-up which will in turn have a salutary impact on India Inc’s investments. The sharp 33% rise in capital spending budgeted for 2023-24 is in line with CII’s suggestion and lends credence to government’s vision of improving the economy’s growth potential through a push to overall productivity of the economy and creation of jobs, Mr Bajaj highlighted.
Even as a boost was given to demand drivers, the FM did a fine balancing act of maintaining fiscal discipline by containing the fiscal deficit at 6.4% of GDP for the current fiscal and bringing it down along a steady glide path to 5.9% next year, added Mr Sanjiv Bajaj, President, CII.
Statement by Mr Chandrajit Banerjee, Director General
Growth oriented fiscally prudent budget, with continued focus on capex and inclusion
The Finance Minister delivered a growth centric budget building further on the strategy of high capex. The first Budget of India’s Amrit Kaal also lays strong foundations for a Viksit Bharat by 2047.
The continued thrust on capital expenditure will boost overall economic productivity, crowd in private investment, and drive growth through a multiplier effect.
Capex spending is budgeted to rise steeply for the third year in a row. Capex spending budgeted at Rs 10 lakh crore in FY24 as compared to budgeted print of Rs 7.5 lakh crore in FY23, implies over 33% rise in FY24 BE over FY23 BE. This is in line with CII recommendations.
The focus on agriculture, skill development and “Vanchit ko Variyta” are big positives, which will spur a transformational shift in the quality of life of the large population driving inclusion and broad basing growth.
While supporting growth with equity, the Budget does not fall short on the fiscal consolidation imperative. The projected fiscal deficit of 6.4% for FY23 and 5.9 % for FY24 is very much in line with what CII had suggested and will help India weather the global uncertainties well as also boost investor confidence. The reiteration of reducing the fiscal deficit to below 4.5% by 2025-26 is a welcome move as it gives a glide path.
The Budget lays down the foundations for the long-term vision with focus on agriculture and rural development, technology and R & D, sustainability, urban reforms, encouraging private sector investment through the Ease of Doing Business and inclusive development.
Statement by Mr R. Dinesh, President Designate, CII
The finance minister deserves kudos for presenting a landmark budget that provides a substantial growth impetus to the economy while at the same time maintaining a prudent fiscal framework. CII welcomes the emphasis on demand-led growth, higher public investment on infrastructure, addressing social sector priorities and ensuring fiscal credibility to uplift the economy.
The seven key priorities outlined in the budget namely inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, youth power, financial sector and green growth are in resonance with our journey towards Amrit kaal and the vision of India@100, which the Indian industry has articulated. Apart from steps for boosting the economy, the finance minister has also announced a host of measures to further inclusion drive.
Many of the budget provisions are indeed path-breaking. The focus on capital expenditure especially on infrastructure is especially welcome, as it would sustain recovery and create jobs at a time when the world is reeling under extreme global uncertainty and headwinds. Specifically, the increased allocation for ports, roads and the highest allocation for rail etc would raise the efficiency of logistics and supply chain that would spur manufacturing competitiveness.
Similarly, of the announcements on fiscal consolidation, ease of doing business, promoting Atmanirbhar Bharat through customs duty rationalization on inputs used by domestic industry are commendable and deserve to be applauded.
Similarly, a bold agriculture thrust, higher allocation on health, education, skills, attention to start-ups and MSMEs, income tax concessions to boost consumption in the middle class would promote all round growth.
Overall, the Budget is in sync with the dreams of an aspirational nation while envisioning a blueprint and a Strategy for a New India@100.
Statement by Mr Sanjiv Puri, Vice President, CII on the Union Budget 2023-24
CII welcomes the Budget 2023-24, which is growth and investment oriented. While addressing fiscal consolidation, it also focuses on inclusive and sustained human development.
The finance minister needs to be complimented for moving ahead with its vision of creating significant infrastructure assets to take India to a high growth orbit. Significant allocations have been made on roads and rail. The adherence to the path of fiscal consolidation while attempting to maintain the quality of deficit would help build credibility and promote investor confidence. Raising the outlay on affordable housing and encouraging capex in states is another welcome announcement. CII particularly welcomes the enhanced outlay on education, healthcare, and skill development with a view to increasing opportunities for the youth and realizing the demographic dividend.
The Budget has retained an agrarian and rural pivot. A comprehensive set of measures have been announced to improve agriculture competitiveness and generate the interest of the private sector. The creation of the agri accelerator fund for agri startups in the Budget would encourage investment in the agri start-up ecosystem.
Besides, the focus on diversification of agriculture towards animal husbandry, fishery, dairy, emphasis on production of millets, creating an efficient information network, increasing the target for agriculture credit, creation of digital public infrastructure are encouraging initiatives which would have a salutary impact on raising agriculture productivity and boosting farmer income.
The Budget rightly recognizes the importance of sustainability and climate as an integral component of our development journey which is intrinsically linked to survival challenge.
Overall, a coherent, purposive and pragmatic Budget, having beneficial provisions for almost all the segments of the society.